Managerial Economics also known as Business Economics is the application of economics to managerial decisions. We are all familiar with economics as a subject from our school days and as we grew through our plus two years we realized economics could be divided into two parts: micro economics and macro economics. Micro economics studies individual units and macro economics studies the entire industry as a whole.
In Managerial economics 1 we deal with the concepts and principals of micro economics and apply them to various aspects of business management. While taking business decisions it is extremely important that we consider the economic condition and its impact on those decisions. It includes economic theories, concepts and business practices in order to make decision making easy and helps out in future planning and decision making.
In order to maximize profits and optimum utilization of scarce resources available with the firm managerial economics is used. It is a combination of economical theories, mathematical concepts and statistical tools that help managers in forecasting the future and taking relevant decisions that are necessary for the organization.
It eases up the process of decision making as it uses past data and predicts future problems and issues that can come up using the various techniques and calculations. For the BMS course managerial economics has been divided into 2 parts one deals with micro economic theories and its application to managerial economics and one deals with macro economic theories and their application to managerial economics.
If we analyze the technicality and difference between the three (Micro Economics, Macro Economics and Managerial Economics), then we can differentiate Micro economics as the branch of economics that involves the allocation of scarce resources on household level. Macro economics is the one which involve the study of economics as a whole. Managerial economics on the other hand applies the tools and techniques learnt in these branches to come up with viable and profitable business ideas.
Managerial economics is extremely vast and is used by profit generating organizations and NGO’s as well for the proper utilization of scarce resources by both. Management economics can be very useful in price determination, long term capital budgeting, and providing insights into the demand and supply factors affecting a commodity.
In your 6th semester you also have the specialization of Econometrics which deals with a combination of economics, mathematics and statistical concepts and theories in order to plan and put into practice all the three together in order to make business decisions.
Why do I need to Study this subject?
All of us as students of BMS aim to become managers or business leaders in the future, it is that school of thought that needs to be trained and learned in a way that all aspects of business knowledge is passed on to them to ensure that their contribution to the company is at a very valuable level and this is why subjects like managerial economics form a part of our curriculum in the very first year itself. It teaches us many aspects about micro economics and the demand and supply aspects for goods and commodities and how these factors affect the business. Even on an individual level it is very helpful to get to know such factors as it helps us in understanding the functioning of various aspects of a company’s economic issues and how can they go about solving it.
Is it Difficult?
Yes, managerial economics is one of the difficult subjects to learn and score good marks in. It needs a lot of concentration and needs you to be able to write huge answers and solve numerical questions as a part of your answers. You need not worry as a methodical approach to studying this subject will help you overcome all your difficulties and pass your exams with flying colours.
Is it Boring?
No, Managerial economics is not at all boring; it is one of the very interesting subjects that you can come across as a student of BMS education. Many of us really enjoy studying economics and for them this subject is going to be very interesting. In case you are not a theory person and the concepts of economics go right from above your head all you need to do is sit for all the lectures in college and pay attention you will realize how interesting this subject can be if paid attention to!
Do I need to join a Coaching Class for this subject?
No, you do not need to join any coaching class for this subject, if you attend your lectures regularly and pay attention in class. You will have to work hard and devote good amount of time to the subject but you do not need to attend any coaching class for this subject.
What is the Syllabus for this subject?
The syllabus of this subject has been divided into 4 Units they are as follows:
Unit I : Introduction
This unit introduces you to the subject and helps you in understanding different theories like decision theory, game theory, etc.
Unit II : Demand Analysis
This unit has everything to do with the concept of ‘Demand’ and so it helps you learning all the different aspects of demand analysis and its impact.
Unit III : Production and Costs
This unit guides you through the production function and how it impacts the costs of various products and commodities.
Unit IV : Market Structures
This unit helps us in knowing the meaning of market structure, need for analyzing market structure, types of markets and is sub-divided as follows:
- Perfect competition and Monopoly
- Oligopoly and Monopolistic Competition
You can find detailed syllabus and list of reference books HERE!
How can I Study this subject?
Before you start studying you must know what type of a BMSite are you? If you are the kind of student who loves theory subjects and is able to understand economics well, you can study the subject using the following steps:
- Attend lectures
- Come home and make notes of whatever you have learnt.
- Use key words to highlight any part of the answers that you find important.
- Make mind maps of difficult concepts and theories.
- Start learning answers from the notes you have created in whatever order of units you wish to take up and complete learning all the answers in a span of one month by spending an hour a day on alternate days.
Within a span of one month you will be able to complete the entire syllabus and start revisions if you follow this format.
If you detest theory or you find it difficult to understand economics, then you can follow these steps to help you study the subject:
- Attend lectures regularly and ask questions whenever you face any doubts.
- In case the faculty is unable to clear the doubt, mark the difficulty, go home and read out the different explanations from the internet so that your concepts are cleared out well.
- During lectures itself make running notes of whatever your professor teaches, and come home and read through all of it once.
- Start studying your answers from those notes. Take up units in this order: 1-4-3-2 as it has a balance of simple and difficult units in proportion so that at any point of time you do not find the studies too burdensome and plan on leaving them mid way.
- Write answers once you finish learning them, from each chapter take the most difficult 2 or 3 answers and practice writing them down with a time limit because during the exams it becomes very difficult for most students to complete the paper.
- A few chapters have numerical problems but it differs from college to college as to whether it is a part of the syllabus or not for the exams. If it is then count your blessings and make sure you solve 2-3 sums daily so that you have covered all the sums at least once.
- You need to study for a month, an hour everyday without missing out on days in order to be able to complete this lengthy subject because at the end of the day all of these efforts should translate into good marks and not just basic passing marks.
If you want to score Really Good marks keep the following tips in mind:
- Practice writing answers as much as you can so that the paper gets completed on time.
- Focus on practicing your diagrams well in advance they are very important, in case you miss out on them while writing your marks will be cut, even if your answer is perfectly framed a missing diagram will make you lose out on marks.
- Numerical sums are a must as they ensure you get those 5-10 marks completely unlike theory where you never get full marks.
While you study for your internal exams make sure you do it for an hour a day, the entire week before your exams.
If you are short on time and worried about passing in the exams you need to use the quick tips to help you clear your exams without a KT:
- Whichever units you take up do them completely, do not leave anything from that particular unit so that on exam day you are able to answer any question from that unit if it comes up.
- Do your diagrams very well, as they are a big help in ganing marks.
- Study for 2 hours a day and focus well on your studies for this subject, if you understand the concepts and you have read the chapter once you will be able to write answers that fetch passing marks for you easily.
Secret To The Most Successful College Romance You Could Have:
Every guy dreams of her at night, she is the hottest babe in college and falling in Love with her is so easy.. it starts with her 36-24-36 figure and ends at her dazzling super lip glossed smile. Then of course when she flashes her iPhone 6 while taking the perfect ‘selfie’ all you could do was ‘like’ it and dream of making her your date this prom night. Unfortunately all you managed when you asked her out was a ‘babaji ka thullu,’ after all her iPhone 6 could only adjust within the comforts provided by the guy who had the ‘4 bangles’ for her, I mean the 4 interlinked bangles of his ‘Audi’ yaar and all you were left with was the consoling sounds made by the creaky fan’s in class and a visibly broken heart!
Admit it all of us have been through a one sided college romance like this one which it unfortunately didn’t work out yet you have kept on chasing similar impossible to get girls and why did you do so? Just for the sheer thrill of making someone so hard to get, yours. But this ‘so-impossible’ to get romance, does it have any benefit in the long run? Naah.. it’s just for the heck of the adrenaline rush that we go cart wheels over it. With economics there is the scope of having the same impossible rush of getting something you can never have and the result will be beneficial too! It’s kind of simple, this Sem instead of skirt chasing the hottest chick in college try and chase behind this ‘so hard to please’ and completely complicated subject to score the maximum marks.
If you look at it from all practical aspects it is as confusing to understand as a girl is, it’s got diagrams that can represent a girls mood swings and the numerical’s rarely have much of practical applicability just like a girls argument but if you manage to make her yours then she will be faithful to by getting marks and eventually the coveted ‘O’ grade. So economics can be the woman behind your success, if you chase her the right way. Spend quality time with her, understand her, and give her the necessary importance; though not as visually appealing as the college diva this one will give the long term support that your future desires!
Work hard and have a little fun while you are at it, All the best for Economics 1 🙂
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