Delhi University SYBMS Sem 3 Syllabus: Managerial Economics

Managerial economics is also known as business economics. Managerial economics bridges economic theory and economics in practice. The application of economic concepts and economic analysis to the problems of formulating rational managerial decisions is known as ‘Managerial Economics’. Managerial Economics refers to a branch of economics that applies microeconomic analysis to decision methods of businesses or other management.

Managerial Economics is a Semester 3 subject of SYBMS, Delhi University. The purpose of the subject is to apply microeconomic concepts and techniques in evaluating business decisions taken by firms. The emphasis is to explain DU BMS students how the tools of standard price theory can be employed to formulate a decision problem, evaluate alternative courses of action and finally chose among alternatives. Simple geometry and basic concepts of mathematics are used in teaching managerial economics subject.

Here we present DU SYBMS Sem 3 Syllabus: Managerial Economics:

Unit 1- 5 lectures

1. Demand, Supply and Market equilibrium
2. Elasticity of demand and supply
3. Short run vs Long run elasticity

Unit 2 – 10 lectures

1. Theory of consumer behavior
2. Indifference curve theory
3. Indifference curves and its properties
4. Budget constraints
5. Consumer choice
6. Revealed preference
7. Marginal utility and consumer choice.

Unit 3- 12 lectures

1. Production – Technology of production
2. Production with one variable input
3. Production with 2 variable input
4. Returns to scale
5. Cost – measuring costs
6. Cost in the short run and long run
7. Long run vs short run cost curves
8. Economies of scope
9. Learning curve

Unit 4 – 23 lectures

1. Theory of firm and market organization
2. Perfect competition – perfectly competitive markets
3. Profit maximization
4. Marginal revenue
5. Marginal cost
6. Output in the short run and long run
7. Industry’s long run supply curve
8. Consumer and producer surplus
9. Minimum prices
10. Price support
11. Import quota and tariff
12. Impact of tax or subsidy
13. Monopoly – monopoly power and its sources
14. Social cost of monopoly power
15. Monopsony
16. Monopsony power
17. Price determination
18. Peak-load pricing and inter-temporal price discrimination
19. Two-part tariffs
20. Monopolistic competition and oligopoly
21. Price competition
22. Prisoner’s dilemma
23. Cartels
24. Pricing of factors – competitive factor markets
25. Equilibrium in factor markets
26. Factor markets with monopsony and monopoly power

Unit 5- 6 lectures

1. Market failure – externalities
2. Ways of correcting market failure
3. Stock externalities and property rights
4. Common property resources
5. Public goods
6. Private preferences for public goods.

Text books and reference books:

• Microeconomics – Pidyck, Rubinfeld and Mehta
• Economics (11^th ed.) Oxford University Press
• Modern microeconomics, second edition, Joutosyiannis
• Microeconomics, fifth edition, Dominick Salvatore