UBMSFSII.3 : Managerial Economics
[50 lectures : 3 Credit]
Objective :
- To acquaint the students with concepts and techniques used in Micro-economic Theory and to enable them to apply the knowledge in business decision making.
- To apply economic analysis in the formulation of business policies.
- To use economic reasoning to problems of business.
Level of Understanding: The students should acquire applied and analytical skill using economic theories to solve management problems.
| Units | Name of the topic | No. of |
| lectures | ||
| Unit I | Meaning, scope and role of managerial economics | 15 |
| Meaning and types of demand, demand function and demand curve, | ||
| variation and increase and decrease in demand, concepts of price, income | ||
| and cross elasticity of demand, consumer’s surplus. | ||
| Supply-meaning and supply function | ||
| Unit II | Meaning and types of production function, application and importance of | 15 |
| production function in Managerial decision making, Economies of scale | ||
| & scope-Producers surplus. | ||
| Cost concepts, cost-output relationships and its importance, types of cost, | ||
| functional form of short run and long run cost, LAC as a decision making | ||
| tool. Impact of learning curve | ||
| Revenue concepts- TR, MR,AR. | ||
| Unit III | Market structure- meaning, types and need for analyzing market | 15 |
| structure. | ||
| Perfect Competition- features, representative firm and industry, | ||
| Equilibrium in short and long run, price and output determination with | ||
| diagrams, normal profits and losses, supernormal profits | ||
| Monopoly- features, equilibrium in short and long run, Price | ||
| discrimination, Dumping | ||
| Unit IV | Oligopoly and Monopolistic Competition: | 15 |
| 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. | ||
| Pricing policies and practices- role of cost, demand and consumer | ||
| psychology in pricing. Pricing methods: full cost pricing, marginal cost | ||
| pricing, pricing of new products, penetration pricing, skimming pricing. | ||
Reference Books
- A study of Managerial Economics, Gopalakrishna, Himalaya Mumbai
- Managerial Economics Hague, D. Longman, London
- Managerial Economics, Dean Joel, Eastern Edition
- Managerial Economics Paul G Keat, K.Y. Young Prentice Hall Publications
- Managerial Economics Ahuja HL (2007) S.Chand & Co.Delhi
- Micro Economics – M. L. Seth
- Micro Economics – M. L. Jhingan; Vrinda Publications, New Delhi.
- Managerial Economics – Theory and Application – D. M. Mithani
- Managerial Economics, Varshney RL and Maheshwari KL
- Managerial Economics, Peterson – Prentice-Hall of India.
- Managerial Economics, Mote Paul Gupta – MGH.
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