Economics for Managers | MBA 1st Sem | Bangalore University

Syllabus

1.1: Economics for Managers

Module 1: Introduction                                                                                                                                                                 8 Hours

Introduction to Managerial Economics, Economic Systems, Principles of Managerial Economics, Integration with other Managerial Decision-Making Process, Tools and Analysis for Optimization, Role of Government and Private Sector, Competition Vs Cooperation. Relationship with other Management Subjects. Production Possibility Frontiers (PPF) – Productive Efficiency Vs Economic Efficiency – Economic Growth & Stability – Microeconomies and Macroeconomies – the Role of Markets and Government – Positive Vs Negative Externalities.

Module 2: Demand and Supply Analysis                                                                                                                                10 Hours

Definition of Demand, Law of Demand and its Determinants and Exceptions, Elasticity of Demand and Supply, Movement Along the Demand Curve and Shift in Demand Curve, Demand and Supply Relationship. Definition of Supply, Law of Supply, Movement Along the Supply Curve and Shift in Supply Curve. Relationship of Revenue and Elasticity of Demand, Methods of Demand Forecasting and its use in Demand. Interpretation of Quantitative and Qualitative Demand Techniques- Model specification Using Regression and OLS.

Module 3: Consumer and Producer Behaviour                                                                                                                    12 Hours

Introduction to Consumer Behaviour, Utility, Cardinal Approach, Ordinal Approach, Consumer’s Equilibrium Using Indifference Curve Analysis and Consumer Surplus, Application of Indifference Curve Analyses Market, Production – Short-Run and Long-Run Production Function – Returns to Scale – Economies Vs Diseconomies of Scale, ISO-Quants & ISO-Cost Line, – Analysis of Cost – Short-Run and Long-Run Cost Function – Relation Between Production and Cost Function, Break Even Analysis – Meaning, Assumptions, Determination of BEA, Limitations, Uses of BEA in Managerial Decisions (with Simple Problems).

Module 4: Market Structure and Pricing Practices                                                                                                             12 Hours

Different Market structure, Features, Determination of Price Under Perfect Competition and Equilibrium in the Short Run and the Long Run, Monopoly - Features, Equilibrium Condition, Price Discrimination. Monopolistic Competition: Features, Pricing Under Monopolistic Competition Oligopoly: Features, Kinked Demand Curve, Cartels, Price Leadership., Game Theory- Types, Static and Dynamic Games Pricing Approaches: Full Cost Pricing, Product Line Pricing, Pricing Strategies: Price Skimming, Penetration Pricing, Loss Leader Pricing, Peak Load Pricing.

Module 5: Business Environment and Economy Performance                                                                                        10 Hours

Nature, Scope, Structure of Indian Business Environment – Internal and External Environment. Political and Legal Environment, Economic Environment, Socio – Cultural Environment, Global Environment, Macro-Economic Aggregates – Circular Flow of Macroeconomic Activity – National Income Determination– Aggregate Demand and Supply – Macroeconomic Equilibrium – Components of Aggregate Demand and National Income – Multiplier Effect.

Module 6: Industrial Policies                                                                                                                                                       8 Hours

Industrial Policies of India, New Industrial Policy 1991; Private Sector- Growth, Problems and Prospects, SMEs – Significance in Indian Economy-Problems and Prospects. Fiscal Policy and Monetary Policy. Foreign Trade: Trends in India’s Foreign Trade, Impact of WTO on India’s Foreign Trade.