ECONOMICS FOR MANAGERS BNU MBA First Sem

Syllabus

Course Code: MBA1.5

Economics for Managers

Module 1: Introduction to Managerial Economics 10 Hours

General Foundation to Managerial Economics, Kinds of Economic Decisions, Applicability of Managerial Economics in Decision Making, Nature of the Firm-Objectives of the Firm, Role and Responsibilities of a Manager of a Firm, Economic Principles Relevant to Managerial Decision Making, Opportunity Cost, Production Possibility Curve.

Module 2: Demand Analysis and Consumer Behavior 12 Hours

Concept of Demand, Law of Demand, Elasticity of Demand and It’s Types-Relevance in Business Decision Making, Demand Forecasting, Techniques of Demand Forecasting, (Including Practical Problems - Least Square Method). Concept of Consumer, Consumers Equilibrium Theory -Cardinal Utility Approach, and Ordinal Utility Approach Indifference Curve Analysis Consumer Surplus and Its Application in Business (Including Simple Problems).

Module 3: Production and Cost Analysis 12 Hours

Concept of Production and Its Factors, Law of Variable Proportions, Laws of Return to Scale, Isoquants and Isocost Curves, Optimum Combination of Inputs, Elasticity of Substitutions; Cost Concepts: Types of Costs, Short Run and Long Run Cost Functions, Interrelationship of Cost, Cost Reduction and Cost Control. (Problems on Cost Analysis), Break Even Analysis-Meaning, Determinants of BEP, Usefulness and Limitations of BEA.

Module 4: Market Structure and Pricing 14 Hours

Concepts of Revenue Curves of Firm and Relationship Among TR, AR and MR Curves. Profit and Profit Functions. Concept of Market and Market Equilibrium, Different Market Structure- Characteristics, Advantages and Disadvantages of Perfect Competition, Monopoly, Duopoly, Monopolistic, and Oligopoly. Concept of Pricing, Descriptive Pricing Approaches, Price Discrimination and Dumping. Concept of Factor Pricing, Theories of Factors Pricing.

Module 5: Macroeconomic Analysis 08 Hours

National Income: Concept and Measurement, Circular Flow of Economic Activities, Keynesian Theory of Employment, Consumption Function, Investment Function, Multiplier, Relevance of Keynesian Economics in Underdeveloped Countries, Business Cycle, Inflation, Deflation and Monetary Policy.