Managerial Economics

Paper Code: 
MFM 122
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Objectives:

The Objective of this course is to acquaint the participants with concepts and techniques used in Micro-Economic Theory and to enable them to apply this knowledge in business decision-making using both micro and macroeconomic principles. Emphasis is given to changes in the nature of business firms in the context of globalization

Course Outcomes (COs): At the end of this course, a student should be able to:

Course

Learning outcomes

(at course level)

Learning and teaching strategies

Assessment

Strategies

PAPER CODE

Paper Title

MFM 122

Managerial Economics

CO 7.Analyze concept of utility & consumer’s equilibrium from the perspective of an organization.

CO 8.Analyze how changes in demand and supply affects the Business

CO 9.Analyze consumer behaviour and consumer equilibrium.

CO 10.Analyze relationships between production output & costs and between revenue and costs.

CO 11.Distinguish different forms of markets.

CO 12.Analyze Macroeconomic factors affecting business situations.

Approach in teaching:

Interactive Lectures, Group Discussion, Tutorials, Case Study

 

Learning activities for the students:

Self-learning assignments, presentations

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

 

 

12.00
Unit I: 
Managerial Economics & Consumer Behaviour

Managerial Economics: Meaning, Nature and Scope of managerial economics. Constraints and Opportunity costs, Production Possibility Curve,

Consumer Behaviour:Utility and indifference curve approaches-meaning, law of diminishing, marginal rate of substitution, properties of indifference curve, price line, consumer’s equilibrium-conditions of consumer equilibrium, income substitution and price effect.

12.00
Unit II: 
Demand analysis:

 Demand and law of demand, Normal Goods, Substitute Goods, Veblen Effect, Bandwagon effect, Network Externality, Snob Effect, determinants of demand on demand function, change in demand, elasticity of demand-degrees, Measurement of price elasticity of demand-total expenditure method, proportionate method, point elasticity method. Demand forecasting- Meaning and techniques of demand forecasting, Law of supply (Conceptual)

 

12.00
Unit III: 
Cost and Output Analysis

Cost Concepts and Cost Output Relationship

Concepts of Revenue, Theory of Firm

 

12.00
Unit IV: 
Production Function & Markets

Production Function: Short Run and Long Run

Markets: Meaning, characteristics, types of markets-perfect and imperfect markets, Price and output determination in perfect competition, monopoly and monopolistic market.

12.00
Unit V: 
Macro Economic factors affecting Business

Business cycles, Inflation, National Income, Political stability, Financial markets-Stock Market, Currency Market and Commodity Markets

Essential Readings: 
  • Satya P Das, Micro Economics for Business, Sage Publications Pvt. Ltd.
  • Perloff & Brander, Managerial Economics and Strategy, Pearson Education
  • Mathur, Yadav, Vyas, Business Economics, RBSA, Jaipur
  • Jain,Khanna & Tiwari, “ Business Economics”,V K India enterprises,New Delhi.
  • Adhikary, M. Business Economics., New Delhi, Excel Books, 2000.
  • Keat, Paul G & Philips K. Y. Young, Managerial Economics, Prentice Hall, New Jersey,

 

Academic Year: 
2021-2022
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