Syllabus

20MBA107

BUSINESS ECONOMICS

Module 1                                                                                                                                     12 Hours

Introduction to Economics– Concept of Economics and Business Economics, Micro Economics and Macro Economics, Fundamental concepts in economics that aid decision making: Incremental Principle, Concept of Cost, Discounting Principle, Time Concept, Concept of Inflation –Types and impact of inflation. Equi-Marginal Principle.

Module 2                                                                                                                                     12 Hours

Demand Analysis and Forecasting – Equilibrium of Consumer -Demand Analysis – Types of Demand – Law of Demand & its Exceptions - Elasticity of Demand – Price Elasticity, Income Elasticity, Cross Elasticity, Advertisement Elasticity - Applications of the concept of Elasticity –- Demand Forecasting – An overview of Forecasting Techniques – Statistical & Non-Statistical Methods- Analysis of Consumer Equllibrium under Cardinal Utility Analysis –Law of equi-marginal utility – Consumer behaviour under Ordinal Utility analysis -Indifference Curve Analysis.

Module 3                                                                                                                                     12 Hours

Supply & Production- Law of Supply and Factors Influencing Supply – Theory of Production – Production function, Production function with one variable input – Law of Variable Proportions – Returns to Scale, Production function with two variable inputs – Isoquants – Isoclines, Collusive oligopoly (Cartels, Price leadership)-Producers’ Equilibrium, Economies of Scale – Types – Economies of Scope ,-Theory of Costs – Classification of Costs – Determinants of Cost - Short Run & Long Run Cost Curves – Graphical Presentation - Revenue Curves.

Module 4                                                                                                                                     12 Hours

Market Structure - Classification of Markets – Markets based on Competition -Theory of Firm – Profit  Maximization Rules - Price & Output Determination under Perfect Competition -Price & Output Determination under Monopoly - Price & Output Determination under Monopolistic Competition - Price & Output Determination under Oligopoly – Kinked Demand curve model only.

Module 5                                                                                                                                     12 Hours

5A: Monetary Policy and Fiscal Policy – Business Cycle-Phase of Business Cycle-Concept of Inflation-Types and impact of inflation-Monetary Policy Measures and Challenges of Monetary Policy Measures – Fiscal Policy Measures and Challenges of Fiscal Policy Measures.

5B: Pricing Practices & Strategies - Factors affecting Price Determination – Pricing Strategies – Cost Oriented Pricing and Competition Oriented Pricing - Pricing in large enterprises – Pricing in Small Business.