Business Economics-II

Syllabus

-

2T2: Business Economics-II

UNIT 1

Cost Analysis: Cost Concepts–Actual and  Opportunity Cost, Fixed Costs and Variable Costs, Explicit and Implicit Costs, Total, Average and Marginal Costs, Historical Costs and Replacement Costs, Short Run Costs and Long Run Costs, Accounting Costs and Economic Costs. Determinants of Costs; Short Run Cost-Output Relationship; Long Run Cost-Output Relationship; Economies and Diseconomies of Scale – Factors Causing, Economies and Dis-Economies; Estimating Cost Output Relationship – Accounting Method, Engineering Method, Econometric Method      

UNIT 2

Market Structures – Concept, Meaning, Definition, Classification of Market Structures, Perfect Competition, Monopolistic Competition. Product Differentiation. Oligopoly: Homogeneous and Heterogeneous Oligopoly, Price Rigidity in Oligopoly. Kinked Demand Curve. Monopoly Features, Equilibrium. Difference between Perfect Competition and Monopoly

UNIT 3

Pricing Concepts – Demand, Cost of Production, Objective of Firm, Government Policy, Nature of Competition, Cournot’s Model, Collusion Model, Leader- Follower Model; Price Determination under Perfect Competition, Price Determination under Monopolistic Competition; Price Determination under Monopoly

UNIT 4

Introductory Macroeconomics: Concept of Inflation, Employment, Money Supply, Monetary Policy, Fiscal Policy, Balance of Payments, National Income, Consumption Function. Savings and Investment - Equality between Savings and Investments; Determinants of National Income, Measurement of National Income.