Business Economics-I

1T4: BUSINESS ECONOMICS–I

 Unit I: Nature and Scope of Business Economics

Business Economics-Meaning, Scope and Objectives of Business Economics. Nature and Types of Business Decisions. Role and Social Responsibility of Business & Business Economist. Micro and Macro Economics- Definition, Scope, Merits and Demerits.

Unit II: Theory of Consumption

Law of Demand, Demand Determinants, Changes in Demand, Indifference Curve Concept- Definition, Properties, Importance of Indifference Curves. Elasticity of Demand- Concept, Definition, Kinds, Measurement of Elasticity of Demand, Factors influencing Elasticity of Demand, Importance of Elasticity of Demand. Demand Forecasting- Meaning, need, Importance, Methods of Demand Forecasting.

Unit III: Theory of Production

Concept of Production Function- Concept, Definition, Types of Products, Total Production, Average Production, Marginal Production. Law of Variable Proportions- Assumptions, Significance & limitations. Isoquant Curves- Definition, General Properties of Isoquant Curves, Expansion Path. Law of Returns to Scale, Internal and External Economies and Diseconomies of Scale, Ridge Lines. Theories of Population – Malthusian Theory of Population, Optimum Theory of Population, Demographic Transition Theory of Population and Criticisms. Law of Supply.

Unit IV: Theory of Cost and Revenue

Law of Supply & Criticisms, Factors influencing supply. Concept of Cost in the Short & Long Run- Accounting Cost, Economic Cost, Opportunity Cost, Fixed Cost, Variable Cost, Direct and Indirect Costs, Real Cost, Explicit & Implicit Costs, Money Cost, Total Cost, Average Cost, Marginal Cost, Selling Costs. Revenues - Total Revenue, Average Revenue, Marginal Revenue and their Relationship.