UBMSFSII.3 : Managerial Economics
[50 lectures : 3 Credit]
- To acquaint the students with concepts and techniques used in Micro-economic Theory and to enable them to apply the knowledge in business decision making.
- To apply economic analysis in the formulation of business policies.
- To use economic reasoning to problems of business.
Level of Understanding: The students should acquire applied and analytical skill using economic theories to solve management problems.
|Units||Name of the topic||No. of|
|Unit I||Meaning, scope and role of managerial economics||15|
|Meaning and types of demand, demand function and demand curve,|
|variation and increase and decrease in demand, concepts of price, income|
|and cross elasticity of demand, consumer’s surplus.|
|Supply-meaning and supply function|
|Unit II||Meaning and types of production function, application and importance of||15|
|production function in Managerial decision making, Economies of scale|
|& scope-Producers surplus.|
|Cost concepts, cost-output relationships and its importance, types of cost,|
|functional form of short run and long run cost, LAC as a decision making|
|tool. Impact of learning curve|
|Revenue concepts- TR, MR,AR.|
|Unit III||Market structure- meaning, types and need for analyzing market||15|
|Perfect Competition- features, representative firm and industry,|
|Equilibrium in short and long run, price and output determination with|
|diagrams, normal profits and losses, supernormal profits|
|Monopoly- features, equilibrium in short and long run, Price|
|Unit IV||Oligopoly and Monopolistic Competition:||15|
|Oligopoly: definition and characteristics, collusion and cartel, non-price|
|competition, price stickiness and kinked demand.|
|Monopolistic competition- definition and characteristics, equilibrium|
|price and output determination.|
|Pricing policies and practices- role of cost, demand and consumer|
|psychology in pricing. Pricing methods: full cost pricing, marginal cost|
|pricing, pricing of new products, penetration pricing, skimming pricing.|
- A study of Managerial Economics, Gopalakrishna, Himalaya Mumbai
- Managerial Economics Hague, D. Longman, London
- Managerial Economics, Dean Joel, Eastern Edition
- Managerial Economics Paul G Keat, K.Y. Young Prentice Hall Publications
- Managerial Economics Ahuja HL (2007) S.Chand & Co.Delhi
- Micro Economics – M. L. Seth
- Micro Economics – M. L. Jhingan; Vrinda Publications, New Delhi.
- Managerial Economics – Theory and Application – D. M. Mithani
- Managerial Economics, Varshney RL and Maheshwari KL
- Managerial Economics, Peterson – Prentice-Hall of India.
- Managerial Economics, Mote Paul Gupta – MGH.