ECONOMICS FOR DECISION MAKING VTU MBA FIRST SEM

Syllabus

Course Code: MBA103

Economics for Decision Making

Module-1 (7 Hours)

Introduction: Managerial Economics: Meaning, Nature, Scope & Significance, Uses of Managerial Economics, Role and Responsibilities of Managerial Economist.  Theory of the Firm: Firm and Industry, Objectives of the firm, Alternate Objectives of Firm. Managerial Theories: Baumol’s Model, Marris’s Model of Growth Maximization, Williamson’s Model of Managerial Discretion.  

Module-2 (9 Hours)

Demand Analysis

Law of Demand, Exceptions to the Law of Demand, Elasticity of Demand, Classification of Price, Income & Cross Elasticity, Promotional Elasticity of Demand. Uses of Elasticity of Demand for Managerial Decision Making, Measurement of Elasticity of Demand. Law of Supply, Elasticity of Supply.

Demand forecasting: Meaning & Significance, Methods of Demand Forecasting. (Problems on Price Elasticity of Demand, and Demand Forecasting using Time-Series Method).  

Module-3 (9 Hours)

Cost Analysis & Production Analysis  

Concepts of Production, Production Function with one Variable Input - Law of Variable Proportion, Laws of Returns to Scale, Indifference Curves, ISO-Quants & ISO-Cost Line, Economies of Scale, Diseconomies of Scale. Types of cost, Cost curves, Cost – Output Relationship in the Short Run and in the Long Run, Long- Run Average Cost
( LAC)curve.

Break Even Analysis–Meaning, Assumptions, Determination of BEA, Limitations, Margin of Safety, Uses of BEA In Managerial Decisions (Theory and Simple Problems).

Module -4   (9 Hours)

Market structure and Pricing Practices  

Perfect Competition: Features, Determination of Price under Perfect Competition, Monopolistic Competition: Features, Pricing Under Monopolistic Competition, Product Differentiation. Oligopoly: Features, Kinked Demand Curve, Cartels, Price Leadership. Monopoly: Features, Pricing under Monopoly, Price Discrimination. Descriptive Pricing Approaches: Loss Leader Pricing, Peak Load Pricing, Transfer Pricing.

Module-5     (9 Hours)

Indian Business Environment  

Nature, Scope, Structure of Indian Business Environment, Internal and External Environment. Political and Legal Environment, Economic Environment, Socio– Cultural Environment, Global Environment. Private Sector, Growth, Problems and Prospects, SMEs, Significance in Indian Economy, Challenges and Prospects.

Fiscal policy and Monetary Policy: Meaning of Fiscal Policy, three Main Types of Fiscal Policy – Neutral Policy, Expansionary, and Contractionary. Monetary Policy: Meaning, Objectives of Monetary Policies: Controlling Inflation, Managing Employment Levels, and Maintaining Long-Term Interest Rates. (Theory Only)

Module-6 (7 Hours)

Indian Industrial Policy: New Industrial Policy 1991, Production Linked Incentive (PLI) Scheme for Promoting Manufacturing of Telecom & Networking Products in India, New Economic Initiatives Proposed by Indian Government for Economic Growth Private Sector-Growth-  like Atma Nirbhar  Bharath Abhiyan.