Managerial Economics

Unit I — Introduction to Managerial Economics

i. Nature, Scope, Definitions of Managerial Economics, · ii. Micro vs. Macro Economics, · iii. Application of Managerial Economics to Business, fundamental concepts, · iv. Gap between theory & practice and role of managerial economist in a business firm.

Unit II — Consumer Behaviour and Demand Analysis

i. Cardinal Utility Approach: Diminishing Marginal Utility, Law of Equi-Marginal Utility · ii. Ordinal Utility Approach: Indifference Curves, Marginal Rate of Substitution, Budget Line and Consumer Equilibrium, · iii. Theory of Demand, Law of Demand, Movement along vs. Shift in Demand Curve, · iv. Concept of Measurement of Elasticity of Demand, Factors Affecting Elasticity of Demand, Income Elasticity of Demand, Cross Elasticity of Demand. · v. Demand forecasting: Demand forecasting meaning, significance and methods.

Unit III — Theory of Production, Cost and Firm's Behaviour

i. Meaning and concept of Production, and Production Function, · ii. Factors of Production: Fixed and Variable Factors, · iii. Law of Variable Proportion (Short Run Production Analysis), Law of Returns to a Scale (Long Analysis), · iv. Concept of Cost: Short Run Cost,Long Run Cost curves, · v. Economics and Diseconomies of Scale, · vi. Market structure: Definition, Types of market, market forces and equilibrium, Pricing under Perfect Competition, Monopoly, Monopolistic Competition, Oligopoly.

Unit IV — Macro Economic Analysis

i. Macro-Economic Variables, · ii. Circular flow of income, · iii. National Income Concepts, definition and its measurement. · iv. Inflation: types and causes, · v. Business Cycle: concept, management policies in various stages of Business cycle.

• Circular Flow of Income
• National Income and its measurement (GDP, NDP, GNP, NNP, PCI, GVA, Green GDP)
• Trade Cycles-Phases