COURSE OBJECTIVE : The basic objective of this course is to make the students aware of the various economic issues that they are expected to face as managers at the firm level and to equip them with the tools and techniques of economic analysis for improving their decisionmaking skills.

COURSE STRUCTURE:
Nature and Scope of Economics: Micro Economics and Macro Economics. Managerial Economics and its relevance in business decisions. Fundamental Principles of Managerial Economics - Incremental Principle, Marginal Principle, Opportunity Cost Principle, Discounting Principle, Concept of Time Perspective. Equi-Marginal Principle.
Demand Analysis and

Demand Forecasting: Theory of Demand. Types of Demand and their characteristics. Utility Analysis. Cardinal Utility and Ordinal Utility. Elasticity of Demand and its measurement. Price Elasticity. Income Elasticity. Arc Elasticity. Cross Elasticity and Advertising Elasticity. Estimation of Revenue. Average Revenue. Marginal Revenue and Elasticity of Demand. Techniques of Demand Forecasting.
Indifference Curve Analysis: Concept and Properties of Indifference Curves. Income Effect. Substitution Effect and Price Effect. Income Consumption Curve and Price Consumption Curve. Derivation of Demand Curve. Superiority of Indifference Curve Analysis over Utility Analysis.
Cost Analysis: Concept of Cost and Cost Classification. Accounting Cost and Economic Cost. Law of Variable proportions - Increasing, Decreasing and Constant Returns. Cost output relationship in the short-run. Cost output relationship in the Long-run, Production Functions. ISO-Cost Curves and their significance in cost analysis. Economies of Scale. Least Cost Combination Concept.
Market Structure and Product Pricing: Perfect and Imperfect Market Structures. Conditions of Perfect Competition. Price of a Product under demand and supply forces. Equilibrium Price. Price behaviour and time element. Market Price and Normal Price. Pricing under Perfect Competition. Prices under short-run and Long-run. Pricing under Monopoly and Monopolistic Competition. Pricing under Oligopoly. Kinked Demand Curve. Discriminating Prices.
Factor Pricing: Pricing of labour as a factor of production. Marginal productivity theory of factor pricing.
National Income: Definition of national income. Product and money flows. Measurement of National Income – Net output or value method. Factor Income method. Expenditure method. Choice of Methods. Growth and composition of India’s National Income.  

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