Business Economics

Unit

Topics

I

Introduction to Business Economics: Nature and Scope of Business Economics, Its Relationship with Other Subjects.

Fundamental Economic Tools – Opportunity Cost Concept, Incremental Concept, Principle of Time Perspective, Discounting Principle and Equi-Marginal Principle.                                                                       [Lecture-6]

II

Demand Analysis: Concept of Demand; Its determinants. Price, Income; Substitution Effects.

Elasticity of Demand: Meaning, Types, Measurement and Significance in Managerial Decisions, Revenue Concepts, Concept of Demand Forecasting and Methods of Demand Forecasting.     [Lecture-8]

III

Production and Cost Analysis: Meaning, Production Function, Law of Variable Proportion and Laws of Return to Scale, Various Cost Concepts and Classification, Cost Output Relationship in Short Run and Long Run, Cost Curves, Economies and Diseconomies of Scale.                   [Lecture-7]

IV

Pricing: Nature of Market, Types of Markets and their Characteristics, Pricing under Different Market Structures – Perfect, Monopoly, Oligopoly and Monopolistic Competition, Price Discrimination under Monopoly Competition.

Profit Management and Inflation: Profit, Functions of Profit, Profit Maximisation, Break-Even Analysis.

Elementary Idea of Inflation.                                                        [Lecture-9]