Business Economics

Syllabus

Course Code: BBA 107

Business Economics

Unit I                                                                                               14 Hours

Introduction to Business Economics and Fundamental Concepts: Nature, Scope, Definitions of Business Economics, Difference between Business Economics and Economics, Contribution and Application of Business Economics to Business. Micro vs. Marco Economics. Opportunity Costs, Time Value of Money, Marginalism, Incrementalism, Market Forces and Equilibrium, Risk Return and Profits. Introduction to Behavioural Economics: Nudge Theory.

Unit II                                                                                             14 Hours

Consumer Behaviour and Demand Analysis: Cardinal Utility Approach: Diminishing Marginal Utility, Law of Equi-Marginal Utility. Ordinal Utility Approach: Indifference Curves, Marginal Rate of Substitution, Budget Line and Consumer Equilibrium. Theory of Demand, Law of Demand, Movement along vs. Shift in Demand Curve, Concept of Measurement of Elasticity of Demand, Factors Affecting Elasticity of Demand, Income Elasticity of Demand, Cross Elasticity of Demand, Advertising Elasticity of Demand. Demand Forecasting: Need, Objectives and Methods in Brief.

Unit III                                                                                            14 Hours

Theory of Production: Meaning and Concept of Production, Factors of Production and Production Function, Fixed and Variable Factors, Law of Variable Proportion (Short Run Production Analysis), Law of Returns to a Scale (Long Run Production Analysis) Through the use of ISO QUANTS. Concept of Cost, Cost Function, Short Run Cost, Long Run Cost, Economies and Diseconomies of Scale, Explicit Cost and Implicit Cost, Private and Social Cost.

Unit IV                                                                                            14 Hours

Cost Analysis & Price Output Decisions: Pricing under Perfect Competition (Features, Short Run, Long Run Equilibrium of Firm/Industry), Pricing Under Monopoly (Features, Short Run and Long Run Equilibrium), Control of Monopoly, Price Discrimination, Pricing under Monopolistic Competition (Features, Short Run and Long Run Equilibrium, Demand and Cost, Excess Capacity), Pricing Under Oligopoly (Cournot Model, Kinked Demand Curve Model).