Business Economics

Paper Code: 
CBBA 103
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Objectives:

This course will enable the students to –

  1. The course aims to acquaint the learners with fundamental economic theories and their impact on pricing, demand, supply, production and cost concepts.

Course Outcomes (COs):

Course

Learning outcomes

(at course level)

Learning and teaching strategies

Assessment

Strategies

Paper Code

Paper Title

CBBA 103

Business Economics

CO 18 Define the nature of microeconomics.

CO 19 Analyze the demand and supply in business applications.

CO20 Acquaint with the production and cost structure under different stages of production.

CO 21 Understand the pricing and output decisions under various market structures.

CO 22 Create awareness about Price determination of firms under different market structures

CO 23 Develop an understanding of role and function of managers.

Approach in teaching:

 

Interactive Hours using whiteboards, Questioning & Discussion, Reading assignments, Frequent or unannounced quizzes.

 

Learning activities for the students:

Self learning assignments, Effective questions,  presentation, Solving problems of unsolved questions

 

Class test, Semester end examinations, Quiz,  Assignments, Class interaction

 

 

12.00
Unit I: 
Demand, Supply and Market equilibrium:

Demand, Supply and Market equilibrium:

individual demand, market demand, individual supply, market supply, market equilibrium; Determinants of Demand; Elasticity of demand and supply: Price elasticity of demand, income elasticity of demand, cross price elasticity of demand, elasticity of supply.

12.00
Unit II: 
Unit II

Theory of consumer behavior: cardinal utility theory, ordinal utility theory (indifference curves, budget line, price effect, substitution effect, income effect for normal, inferior and giffen goods), revealed preference theory.

12.00
Unit III: 
Unit III

Producer and optimal production choice: optimizing behavior in short run( geometry of product curves, law of diminishing margin productivity, three stages of production), optimizing behavior in long run (isoquants, isocost line, optimal combination of resources) Costs and scale: Cost Concepts, Cost Curves: Short run & Long run; economies of scale, economies of scope.

12.00
Unit IV: 
Unit IV

Theory of firm and market organization : perfect competition (basic features, short run equilibrium of firm/industry, long run equilibrium of firm/industry) ; monopoly (basic features, short run equilibrium, long run equilibrium, comparison with perfect competition, welfare cost of monopoly), price discrimination; monopolistic competition (basic features, demand and cost, short run equilibrium, long run equilibrium) ; oligopoly (Cournot’s model, kinked demand curve model, dominant price leadership model)

12.00
Unit V: 
Unit V

Factor market: demand for a factor by a firm under marginal productivity theory (perfect competition in the product market, monopoly in the product market), market demand for a factor, supply of labour, market supply of labour, factor market equilibrium.

Essential Readings: 

1. Salvatore, Dominick, Micro Economics, Oxford University Press, New York
2. Seth, M. L., Principles of Economics, Laxmi Narain Agarwal, Agra
3. Mithani,D.M., Fundamentals of Economics, Himalya Publishing House,Mumbai
4. Ahuja, H.L. , Business Economics, S.Chand & Company,New Delhi
5. Mathur N.D. Managerial Economic. Shivam Book House, Jaipur

References: 

1. C. M. Choudhary : Business Economics
2. Jhingal, M.L., Principles of Economics, Vikas Publishing House, New Delhi
3. Mukherjee,Debes, Business Economics Micro and Macro, New Central Book Agency, Calcutta

Academic Year: 
2021-2022
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