Managerial Economics

                                                                                                                                                          Syllabus

Module -1: Introduction                                                                                                               7 hours

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 Hypothesis, Williamson’s Model.

Module -2: Demand Analysis                                                                                                       9 hours

Law of Demand, Exceptions to the Law of Demand, Elasticity of Demand –Classification of Price, Income & Cross Elasticity, Advertising and 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. (No Problems).

Module -3: Cost Analysis & Production Analysis                                                                      9 hours

Concepts of Production, Production Function with One Variable Input - Law of Variable Proportions. Production Function with 2 Variable Inputs and Laws of Returns to Scale, Indifference Curves, ISO-Quants & ISO-Cost Line, Least Cost combination Factor, Economies of Scale, Diseconomies of Scale. Technological Progress and Production Function. Types of Cost, Cost Curves, Cost – Output Relationship in the Short Run and in the Long Run, LAC Curve 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                                                                   9 hours

Perfect Competition, Features, Determination of Price Under Perfect Competition, Monopoly: Features, Pricing Under Monopoly, Price Discrimination. Monopolistic Competition: Features, Pricing Under Monopolistic Competition, Product Differentiation. Oligopoly: Features, Kinked Demand Curve, Cartels, Price Leadership.

Descriptive Pricing Approaches: Full Cost Pricing, Product Line Pricing, Pricing Strategies: Price Skimming, Penetration Pricing, Loss Leader Pricing, Peak Load Pricing.

Module -5: Indian Business Environment                                                                                   9 hours

Nature, Scope, Structure of Indian Business Environment – Internal and External Environment. Political and Legal Environment, Economic Environment, Socio – Cultural Environment, Global Environment

Basic Macro Economic Concepts: Open and Closed Economies, Primary, Secondary and Tertiary Sectors and their Contribution to the Economy. SWOT Analysis for the Indian Economy. Measuring the Economy: Measuring GDP and GDP Growth Rate, Components of GDP.

Module-6: Indian Industrial Policy                                                                                              7 hours

Industrial Policies and Structure: A Critical Look at 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.