Applied Agribusiness Economics

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Kalee Prasanna Pattanayak

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Course Name : Applied Agribusiness Economics

Code(Credit) : CUTM1184(3-0-1)

Course Objectives

  • Develop a managerial economics perspective;
  • Facilitate students understand different economic paradigms using Microeconomics concepts
  • Acquire conceptual and theoretical knowledge of microeconomics in management perspective
  • Understand and appreciate the tools of microeconomics and their applications
  • Develop the ability to evolve business/management strategy using economic reasoning
  • Appreciate the new challenges to business management in the internet age
  • Appreciate the linkages between economics and the functional areas of business

Course Outcomes

  • COs COURSE OUTCOMES MAPPING COs WITH POs
    CO1 Acquire the conceptual and theoretical knowledge of microeconomics which is relevant for evaluating economic behavior of an individual economic agent. PO1
    CO2 Demonstrate the use of microeconomic concepts like utility satisfying and maximizing traits of consumers, elasticity and opportunity cost in strategic planning; develop an economic perspective of business problems being a leader in future in digital economy PO2, PO5, PO9
    CO3 Evaluate and compare the various types of market structures and use them when planning price policy of a firm and industry and communicate ideas with the policy maker PO3, PO4
    CO4 Understand and appreciate the production dynamics – including cost, revenue and profit considerations and according frame policy to remove disequilibrium in market structure PO6, PO7
    CO5 Learn the optimization functions for both consumer and producer equilibrium;  help to the students how to sustainable resources and utilised economic theory on their day to day life PO8, PO10

Course Syllabus

Module: I The Central Concepts:

Logic of Economics: Scarcity and Efficiency: The Twin Themes of Economics; Three Problems of Economic Organization: Market, Command, and Mixed Economies, Society’s Technological Possibilities: Inputs and Outputs; The Production-Possibility Frontier: Applying the PPF to Society’s Choices;The Modern Mixed Economy: How Markets Solve the Three Economic Problems; Circular Flow of an Economy; The Invisible hand given by Classical Economists; The visible hand of the government given by modern Economists

 

Module: II Demand, Supply and its Applications:

Basic Elements of Supply and Demand: Forces behind the demand and supply curve; Shifts in demand and supply curve; Equilibrium of Supply and Demand; Price Rationing;Supply and Demand: Elasticity and Applications: Price Elasticity of Demand and Supply; Elasticity and Revenue; The Paradox of the Bumper Harvest; Applications to Major Economic Issues: Impact of a Tax on Price and Quantity; Minimum Floors and Maximum Ceilings;Demand and Consumer Behavior: Classical Utility Theory-Cardinal Utility; Neoclassical Utility Theory-Ordinal Utility Theory (Indifference Curve analysis; Income effect, Price effect; Substitution effect); The paradox of value; Leisure and the Optimal Allocation of Time

 

Module: III Theory of Production and Cost:

Theory of Production and Marginal Products: The Production Function; Total, Average, and Marginal Product; The Law of Diminishing Returns; Returns to Scale; Technological Change; Empirical Estimates of the Aggregate Production Function;Economic Analysis of Costs: Total Cost: Fixed and Variable; The Relation between Average Cost and Marginal Cost; The Link between Production and Costs; Diminishing Returns and U-Shaped Cost Curves; Choice of Inputs by the Firm; Marginal Products and the Least-Cost Rule; Transaction Cost, Opportunity Cost and Markets.

 

Module: IV: Decisions of the Firm, Market Failure and Inefficiency:

Perfect and Imperfect Market: Perfect competition and Pareto optimality; Sources of imperfect competition; Economic Costs of Imperfect Competition; Public Policies on Imperfect Competition 

Economics of Risk and Uncertainty: The Economic Impacts of Speculation; Market Failures in Information; Moral Hazard and Adverse Selection;

Externalities: Market Inefficiency with Externalities; Analysis of Inefficiency; Valuing Damages and Policies to Correct Externalities

 

Text Book:

  • Geetika, Ghosh. P. & Roy Choudhury. P., ‘Managerial Economics’, Tata McGraw Hill EducationPvt Ltd, New Delhi

 Reference Books:

  • Samuelson, Paul A. and Nordhaus, W.P., ‘Economics’, McGraw Hill, New York
  • Pindyck, R.S., Rubinfeld D. L. and  Mehta P. L., 'Microeconomics', Pearson Education

 

Session Plan

Session 1

Introduction to Managerial Economics

Presentation: Introduction micro

https://www.youtube.com/watch?v=PHe0bXAIuk0&feature=youtu.be

Session 2

Scarcity and Efficiency: The Twin Themes of Economics

Presentation: Scarcity and Efficiency

https://www.youtube.com/watch?v=1cYMW5d_bn4

Session 3

The Three Problems of Economic Organization

 

https://www.youtube.com/watch?v=sHkviUk_47k

Session 4

The Production Possibility Frontier

https://www.youtube.com/watch?v=nsQi2ipSP2c

Session 6

Session 7

Assignment 1: Identification of Govt Intervention in India in case of inefficiency, inequality and macro economic problems;

Book Review 1: The Great Unraveling: Losing Our Way in the New Century- Paul Krugman

 

 

Session 8

Basic Elements of Demand and Supply

https://www.youtube.com/watch?v=WZ0I9t9QoZ0

 

 

Session 9

Assignment 2: Assess demand and supply of tourism in the wake of COVID-19

 

 

 

Session 10

 

 

 

Session 12

Elasticity and Revenue

Assignment 3: “How might a drought that destroys half of all farm crops be good for farmers? If such a drought is good for farmers, why don’t farmers destroy their own crops in the absence of a drought? farmers.” Illustrate this proposition using a supply-and demand diagram

 

 

 

Session 13

 Applications of Demand and Supply to Major Economic Issues

https://hbr.org/2020/03/understanding-the-economic-shock-of-coronavirus

 

 

 

Session 14

Caselet 1: Two Ways to reduce quantity of smoking Demanded

 

 

 

 

Session 15

Classical Utility Theory-Cardinal Utility

Presentation: Utility Theory-classical

https://www.youtube.com/watch?v=wFrGhooQheU

 

 

Session 16

Neoclassical  Utility Theory-Ordinal Utility

Presentation: Ordinal Utility Theory

 

https://www.youtube.com/watch?v=iOmDo5jLFw8

 

Session 17

The Production Function -Total Product, Average Product and Marginal Product

https://courses.lumenlearning.com/wmopen-microeconomics/chapter/the-production-function/

 

 

Session 18

 

Long Run Production

https://www.coursera.org/lecture/microeconomics/1-1-introduction-to-production-3aY0G

 

 

 

Session 19

 

The Law of Diminishing Returns

Game: The Tennis Ball

 

 

 

Session 20

Session 21

 

Empirical Estimates of the Aggregate Production Function

Presentation: https://slideplayer.com/slide/7659382/

 

 

 

Session 22

 

Total Cost: Fixed and Variable

https://www.coursera.org/learn/microeconomics/lecture/SrpE5/3-1-fixed-variable-and-total-costs

 

 

 

Session 23

 

The Relation between Average Cost and Marginal Cost

https://www.coursera.org/learn/microeconomics/lecture/SJI5U/3-3-cost-curves

 

 

 

Session 24

 

Diminishing Returns and U-Shaped Cost Curves

https://www.youtube.com/watch?time_continue=15&v=JdCgu1sOPDo&feature=emb_logo

 

 

 

Session 25

 

Choice of Inputs by the Firm
https://www.coursera.org/lecture/market-structure/applying-the-golden-rule-of-cost-minimization-FkBb7

 

 

 

Session 26

 

Transaction Costs, Opportunity Cost and Markets
https://www.youtube.com/watch?v=00HPak2RLlQ

 

 

 

Session 27

 

Book Review 2: Good Economics for Hard Times: Abhijeet Banerjee and Esther Duflo

 

 

 

Session 28

 

 Perfect competition and Pareto optimality

https://www.youtube.com/watch?v=wnmhUpx63kE

 

 

 

Session 29

 

Sources and Economic costs of imperfect competition

https://www.investopedia.com/terms/i/imperfect_competition.asp

 

 

 

Session 30

 

Public Policies on Imperfect Competition

https://www.youtube.com/watch?v=lZfbZDK0hLw&list=PL336C870BEAD3B58B&index=33

 

 

 

Session 31

 

 The Economic Impacts of Speculation

https://www.youtube.com/watch?v=uqXVAo7dVRU

 

 

 

Session 32

 

Market Failures in Information
Presentation: The Economic Impacts of Speculation

 

 

 

Session 34

 

Moral Hazard and Adverse Selection
Presentation: Market Failures in Information

 

 

Session 37

 

Analysis of Inefficiency

 

Presentation: Market Inefficiency with Externalities

 

 

https://www.youtube.com/watch?v=yC5R9WPId0s&list=PL336C870BEAD3B58B&index=40

 

Session 38

 

Valuing Damages and Policies to Correct Externalities

 

https://youtu.be/vgfctghfDVo

 

 

 

Session 39

 

Assignment 4: Students need to pick up one negative externality and come up with ideas to correct them

 

 

 

 

Session 40

Caselet 2: The Case for taxing carbon

 

 

 

 

 

Session 41

Project

Book Review 4: The idea of Justice: Amartya Sen

 

 

 

 

Session 42

Doubt Clearing and Wrap up

 

 

 

 

 

Case Studies

Case Studies

Our Main Teachers

Kalee Prasanna Pattanayak holds a masters degree in finance from NIILM centre for management studies. His professional career spans over 10 years into industry and academics. He has more than six years of experience in teaching, training and research. His teaching interests include areas like Economics, Agribusiness and Business Environment. Along with facilitating courses, he […]