Meaning, Features and Scope of Managerial Economics – Types and Determinants of Demand – Law of Demand –Elasticity of Demand –Price, Income and Cross Elasticity of Demand – Concept and Methods of Demand Forecasting.
Numerical Problems on Elasticity and Case Studies.
Unit 2: a) Theory
Production, Cost and Revenue Analysis
Nature and Features of Production Function – Cobb Douglas Production Function and its Features – Law of Variable Proportion and Returns to Scale – Least Cost Factor Combination – Cost Concepts and its Types – Short Run and Long Run Cost Curves – Revenue Curves under Different Market Structure.
Numerical Problems on Production, Costs and Revenue. Decision Making Problems. Drafting Costs Curves under Different Markets and Economic Circumstances.
Unit 3: a) Theory
Market Structure and Pricing Practices
Classification of Market Structure – Price and Output determination under Monopolistic Competition – Characteristics of Oligopoly – Kinked Demand Curve – Price Leadership - Pricing Practices: Cost Plus Pricing-Multi Product Pricing – Dumping.
Numerical Problems on Price Output Determinations, Pricing. Diagrams of Price and Output Determinations Under Different Market Structures. Case Studies.
Unit 4 : a) Theory
Capital Budgeting Business Cycles and Asymmetric Information
Concept and Significance of Capital Budgeting – Methods of Capital Budgeting: NPV – IRR – ARR Concept and Phrases of Business Cycle: Hicks Theory – Schumpeter’s Theory.
Asymmetric Information: Moral Hazards and Adverse Selection
Numerical Problems on Capital Budgeting. Diagrams on Business Cycle. Case Studies.