Managerial Economics I is a Theory subject which deals with application of managerial skills in economics, more over it helps to find problems or obstacles in the business and provide solution for those problems. It is a branch of Economics that applies microeconomic analysis to specific business decisions. It bridges economic theory and economics in practice. One learns about Demand Analysis, Production and Costs, Market Structures.
Let us look at the syllabus unit wise and determine how we should take up studying this subject:
Unit I: Introduction :
- Meaning and Scope of managerial economics
- relationship to economic theory relationship with decision theory
- role of managerial economics
- objectives and constraints of the firm
- Introduction to risk, asymmetric information and game theory.
 After studying economics in your 11th and 12th standard understanding Managerial economics isn’t very difficult. This section deals with the introduction to the subject and is comparatively easy to understand and learn. Micro economics is something you have done before and understanding these concepts will be very easy.
Unit II : Demand Analysis :
- Meaning of demand-Market Demand function
- Demand curve
- factors affecting demand-Variation and increase/decrease in demand
- Elasticity of demand
- Graphical representation of price elasticity of demand Price
- income and cross elasticity of demand
- Estimation of demand-Numerical problems for measurement of elasticity
Some concepts that have been done in the past will be repeated but in an elaborate manner in this section. Surely do the problems and graphical representation.
Unit III : Production and Costs :
- Meaning of production
- Types of production function
- Importance of production function in managerial decision-making
- Application of production function in productive sectors (service and manufacturing)
- Economics of scale and scope.
- Importance of cost in managerial decision-making
- Economic concepts of cost Functional form of short run and long run cost
- Estimation and alternative methods of estimation of cost
- LAC as a decision making tool
- Impact of learning curve.
 This section should be taken up first while learning. Lengthy and bit complicated this section will eat your head the most. With managerial economics the thing to keep in mind is diagrams that need to be made along with lengthy answers like those in this section to gain maximum marks.
Unit IV : Market Structures
Meaning of market structure, need for analyzing market structure, types of markets.
A.         Perfect competition and Monopoly
Features -Representative firm, and industry – Equilibrium in short and long run – Price and output determination using diagrams – Normal profits, losses and supernormal profits in short run – Long run and normal profit – Merits and Limitations of perfect markets.
B.         Oligopoly and Monopolistic Competition
Oligopoly – definition and characteristics – Collusion and cartel – Non-Price competition – Price stickiness and kinked demand.
Monopolistic competition-definition and characteristics – Equilibrium-Price and output determination.
Out of these concepts some are new and some repeated but in depth. Do this section properly. The theory is vast yet important from exam perspective. Do make sure you spend more time on this section.
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