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Managerial Economics
Objective:
The Objective of this course is to acquaint the participants with concepts and techniques used in Micro-Economic Theory and to enable them to apply this knowledge in business decision-making using both micro and macroeconomic principles. Emphasis is given to changes in the nature of business firms in the context of globalization
Course Outcomes (COs):
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Course |
Learning outcomes (at course level) |
Learning and teaching strategies |
Assessment Strategies |
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PAPER CODE |
Paper Title |
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MFM 122 |
Managerial Economics |
CO 1.Describe the nature and scope of managerial economics, concept of utility & consumer’s equilibrium from the perspective of organization. CO 2.Understand how changes in demand and supply affects the Business CO 3.Identify relationships between production output & costs and understand the relationship between revenue and costs. CO 4.Identify key characteristics and consequences of different forms of markets. CO 5.Apply the knowledge of Macroeconomic concepts in the business situations. |
Approach in teaching: Interactive Lectures, Group Discussion, Tutorials, Case Study
Learning activities for the students: Self-learning assignments, presentations |
Class test, Semester end examinations, Quiz, Assignments, Presentation |
Managerial Economics: Meaning, Nature and Scope of managerial economics. Constraints and Opportunity costs, Production Possibility Curve
Consumer Behaviour: Utility and indifference curve approaches-meaning, law of diminishing, marginal rate of substitution, properties of indifference curve, price line, consumer’s equilibrium-conditions of consumer equilibrium, income substitution and price effect.
Demand analysis: Demand and law of demand, Normal Goods, Substitute Goods, Veblen Effect, Bandwagon effect, Network Externality, Snob Effect,determinants of demand on demand function, change in demand, elasticity of demand-degrees, Measurement of price elasticity of demand-total expenditure method, proportionate method, point elasticity method. Demand forecasting- Meaning and techniques of demand forecasting, Law of supply (Conceptual)
Cost and Output Analysis: Cost Concepts and Cost Output Relationship Concepts of Revenue, Theory of Firm
Production Function: Short Run and Long Run
Markets: Meaning, characteristics, types of markets-perfect and imperfect markets, Price and output determination in perfect competition, monopoly and monopolistic market.
Macro Economic factors affecting Business- Business cycles, Inflation, National Income, Political stability, Financial markets-Stock Market, Currency Market and Commodity Markets
*Case studies related to entire topics are to be taught.
Suggested Readings:
• Satya P Das, Micro Economics for Business, Sage Publications Pvt. Ltd.
• Perloff & Brander, Managerial Economics and Strategy, Pearson Education
• Mathur, Yadav, Vyas, Business Economics, RBSA, Jaipur
• Jain,Khanna & Tiwari, “ Business Economics”,V K India enterprises,New Delhi.
• Adhikary, M. Business Economics., New Delhi, Excel Books, 2000.
• Keat, Paul G & Philips K. Y. Young, Managerial Economics, Prentice Hall, New Jersey, 1996. (Latest editions of the above books are to be referred)
