Managerial Economics

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

Course Objective

1. 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. Emphasis is given to changes in the nature of business firms in the context of globalization.

Learning outcomes

(at course level)

Learning and teaching strategies

Assessment

Strategies

  
 

CO 1.Describe the nature and scope of managerial economics, concept of utility & consumer’s equilibrium from the perspective of organization.

CO 2.Understand how changes in demand and supply affects the Business

CO 3.Identify relationships between production output & costs and understand the relationship between revenue and costs.

CO 4.Identify key characteristics and consequences of different forms of markets.

CO 5.Apply the knowledge of Macroeconomic concepts in the 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

  

 

10.00
Unit I: 
Managerial Economics

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)

14.00
Unit III: 
Cost and Output Analysis

Cost and Output Analysis: Cost Concepts and Cost Output Relationship
Concepts of Revenue, General Theory of Price Determination

13.00
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.

11.00
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: 

Essential Books
• Mathur N.D. Business Economics, Shivam Publication, Jaipur2003
• Mathur, Yadav, Vyas, Business Economics, RBSA, Jaipur
• Jain,Khanna & Tiwari, “ Business Economics”,V K India enterprises,New Delhi.

References: 

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

Academic Year: 
2020-2021
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