Business Economics (Theory)

Paper Code:

24CBBA103/CBTM 102

Credits:

Contact Hours:

60.00

Max. Marks:

100.00

Objective:

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

Course Outcomes:

Course

Learning outcomes

(at course level)

Learning and teaching strategies

Assessment

Strategies

Course Code

Course Title

24CBBA 103

Business Economics

(Theory)

CO25: Develop an understanding of demand and supply function to determine market equilibrium.

CO26: Analyze consumer satisfaction by spending on different goods.

CO27: Evaluate the relationship between inputs used in production and the outputs and costs.

CO28: Analyze various facets of pricing under different market situations.

CO29: Evaluate factors of market equilibrium dynamics.

CO30: Contribute effectively in course-specific interaction.

Approach in teaching:

Interactive Sessions, Case Study Discussions, Reading assignments, Quiz

Learning activities for the students:

Self learning assignments, Classroom Presentations, Project Tasks

Continuous Assessment Test, Semester End Examination, Quiz, Assignments, Class interaction

12.00

Unit I:

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:

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:

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:

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:

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

References:

Suggested Reading:

1.Mathur N.D. Managerial Economic. Shivam Book House, Jaipur

2.C. M. Choudhary : Business Economics

3.Jhingal, M.L., Principles of Economics, Vikas Publishing House, New Delhi

4.Mukherjee, Debes, Business Economics Micro and Macro, New Central Book Agency, Calcutta

E-Resources: