Managerial Economics

Nature and scope of Managerial Economics :
Nature and scope of Managerial Economics , its relationship with subjects . Objective of Firm, Fundamental Economic concepts- Opportunity cost concept, Incremental concept. Role of Manager in formulation of Business Policies.
 

Demand Analysis : Utility Analysis-Marginal Utility, Indifference Curve approach. Concept and importance of Demand & its determinants , Income & Substitution effect, Various elasticities of demand , using elasticities in managerial decisions , revenue concepts, relevance of demand forecasting , methods of demand forecasting .

Cost Concept and Production Theory : Various cost concepts & classifications, Cost output relationship – in short run and in long run , (cost curves), Economies of scale , cost control and cost reduction , Production function , managerial uses of production function , Iso Product curves.

Pricing Decisions: Pricing methods , Price Discrimination , Price and output decisions under different market structures - Perfect competition, Monopoly and Monopolistic Competition , Oligopoly .

Profit & Inflation: Profit, Functions of profit, profit maximisation , Break Even analysis , Inflation - Types, in terms of demand pull & cost factors , effects of inflation .

* A minimum of one case study will be discussed per unit of the syllabi.