Managerial Economics

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

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

12.00
Unit I: 
Introduction

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 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 and Output Analysis: Cost Concepts and Cost Output Relationship
Concepts of Revenue, Theory of Firm

12.00
Unit IV: 
Production Function

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

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.

References: 

• Adhikary, M. Business Economics., New Delhi, Excel Books, 2000.
• Keat, Paul G & Philips K. Y. Young, Managerial Economics, Prentice Hall, New Jersey, 1996.

Academic Year: 
2019-2020
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