Managerial Economics

Syllabus

(MBAT-104) 

Unit 1

Introduction to Managerial Economics, Evolution, Nature, Scope and Significance, Circular Flow in an Economy, Principles, Production Possibility Frontier, Managerial Economics: Micro and Macro Economics.

Unit 2

Market Forces: Demand and Supply

a)      Demand Analysis: Theory of Demand; Objectives of Demand Analysis and Determinants of Demand; Theory of Consumer Behaviour; Elasticity of Demand and its                                             Measurement Methods; Importance in Decision-Making.

b)      Supply Analysis: Objective of Supply Analysis; Determinants of Supply, Elasticity of Supply.

Unit 3

Production Function and Cost Analysis: Theory of Production and Cost Analysis; Production Functions and its Managerial Uses; Cobb Douglous Production Function, Laws of Production and Analysis: Empirical Estimates of Production and Cost; Short Run and Long Run Average Cost Curves and Their Analysis; Economies and Diseconomies of Scale.

Unit 4

Organization of the Firm

Pricing Decision: Pricing Under Different Market Structures: Perfect and Imperfect (Monopoly, Duopoly, Monopolistic Competition, Oligopoly Markets), Pricing Policies and Strategies; Collusive and Non-Collusive Oligopoly; Baumol’s Marries’ and O. Williamsons Model.

Unit 5

Factor Pricing

Determination of Factor Pricing; Marginal Productivity Theory; Richardian and Modern Theories of rent; Modern Theory of Wage rate Determination; Classical, Neo-Classical and Keynesian Theory of Interest; Modern Theory of Profit; Welfare Economics; Pareto Optimality Conditions; Social Welfare Function.

Note: Numerical Questions should be set on elasticity, break even analysis, demand forecasting and optimum output determination under law of variable proportions.