Economics is no longer just about supply, demand, and equilibrium; today, it is about Big Data, algorithms, and sustainable value creation. In my twenty years of teaching postgraduate students, I have witnessed a paradigm shift in how managers must view the world. The modern manager does not just analyse costs; they must navigate the complexities of the Digital Economy, Industry 4.0, and ESG (Environmental, Social, and Governance) frameworks.
This First Edition of “Economics for Managers” has been meticulously crafted to address the needs of MBA students at Bengaluru City University and beyond. While it honours the foundational principles of micro and macroeconomics, it distinguishes itself by integrating contemporary realities that define the current business landscape.
Readers will find a comprehensive exploration of:
– Data-Driven Decision Making: Moving beyond intuition to leverage AI and Machine Learning in demand forecasting.
– The Digital Marketplace: Understanding the economics of platforms, “Freemium” models, and the Gig Economy.
– Behavioural Economics: Analysing consumer biases and “nudges” that drive real-world decision-making.
– Sustainability: A critical look at the Circular Economy and Green Production strategies, debating the vital trade-offs between profit and sustainability.
This book is designed to be a “thought partner” for students; systematic, chart-rich, and rigorous. It aims to equip future leaders with the analytical tools required to interpret global shocks, such as pandemics and supply chain disruptions, and to make resilient economic decisions.
Contents –
Module – 1 Demand Analysis and Consumer Behaviour
Introduction
Demand Analysis
Consumer Behaviour
Decision-making
Decision-making Process
Role of Economics in Business
Economic Principles
Discounting Principle
Production Possibility Curve
Opportunity Cost
Digital Economy
Data-driven Decision Making
Demand
Demand Theory
Elasticity of Demand
Demand Forecasting
Advanced Demand Forecasting Techniques
Time Series Analysis
Big Data
AI Applications
Machine Learning Applications
Consumer Equilibrium
Cardinal Utility
Indifference Curve
Revealed Preference
Behavioral Economics
Bounded Rationality
Nudges
Consumer Biases in Decision-making
Review Questions
Module – 2 Production and Operations Economics
Introduction
Production
Production Function
Returns to Scale
Isoquants
Iso-costs
Economies of Scale
Diseconomies of Scale
Optimum input Combination
Elasticity of Substitution
Industry 4.0 Implications
Automation and AI
Sustainability in Production
Circular Economy
Green Production Strategies
Review Questions
Module – 3 Cost, Revenue and Profit Strategies
Introduction
Cost and Revenue
Types of Cost
Revenue Concepts
Cost Control
Reduction
Short-run Cost Functions
Long-run Cost Functions
Relationship between Cost and Revenue Curves
Pricing Decisions in Competitive Markets
Pricing Decisions in Digital Markets
Freemium
Dynamic Pricing
Platform Pricing
Sustainability Pricing
Carbon Pricing
Review Questions
Module – 4 Market Structures and Strategy
Introduction
Perfect Competition
Monopoly
Oligopoly
Monopolistic Competition
Price Discrimination
Dumping
Global Trade Implications
Competition in Digital Markets
Network Effects
Platform Monopolies
Antitrust Issues
Labor Economics
Gig Economy
Remote Work
Future of Employment
Review Questions
Module – 5 Macroeconomics and Policy Analysis
Introduction
Macroeconomics
National Income
Digital Economy
Accounting in Digital Economy
Challenges in Digital Economy
Business Cycles
Inflation
Monetary
Fiscal Policy
Global Shocks
Pandemics
Climate Change
Supply Chain Disruptions
Geopolitics
Indian Economic Environment
Global Economic Environment
Start-up Ecosystem
Digital Payments
Foreign Direct Investment
SDGs in Economic Decision-making
ESG in Economic Decision-making
Review Questions
Module – 6 Practical Applications
Data-based Demand Forecasting using Excel/Power BI
Analyze Consumer Behavior using Behavioral
Economics Caselets
Evaluate Sustainability Cost-benefit for a Firm
Simulate Market Equilibrium with Changing Policies
Debate: “Should Firms Prioritize Profit or Sustainability?”
