PROGRAMME

SEMESTER 

COURSE NAME

COURSE CODE 

BBA LLB (Hons.) 5 Yr.

I

Managerial Economics

 

 Course Introduction: 

The course Managerial Economics provides students with the knowledge, tools and techniques to make effective economic decisions under conditions of risk and uncertainly. Demand, cost and pricing decisions are emphasized. Topics include decision-making criteria and procedures, demand and cost theory and estimation, pricing theory and practice (including price positioning), pricing new products and competitive bids and price quotes.

Course objective:

The object of the course is to enable the students to

  1. List the different goals and constraints that firms face
  2. Apply the economic way of thinking to individual decisions and business decisions
  3. Use calculus (first and second order derivatives) to solve for an optimum solution

Course outcome:
After completion of the course the student will be able to

  1. Understand how prices get determined in markets, how market participants benefit in the form of consumer surplus and producer surplus, and what are the consequences of government intervention
  2. Measure the responsiveness of consumers’ demand to changes in the price of a good or service, the price of other goods and services, and income

Module – I   Introduction to Managerial Economics

  1. Nature, Scope and definition of Managerial Economics
  2. Application of managerial economics
  3. Micro Vs Macro Economics,
  4. Basic principles of Managerial Economics
  5. Opportunity Cost Principle,
  6. Incremental Principle
  7. Principle of time perspective
  8. Discounting principle 

Module – II   Consumer behaviour, demand and supply analysis

  1. Law of demand
  2. Theory of demand
  3. Shift in demand curves
  4. Concept of measurement of elasticity of demand
  5. Factors affecting elasticity of demand
  6. Income elasticity of demand
  7. Cross elasticity of demand
  8. Cardinal utility approach
  9. Diminishing marginal utility
  10. Law of equi marginal utility
  11. Ordinal utility approach
  12. Indifference curve,
  13. Marginal rate of substitution
  14. Budget line and consumer equilibrium
  15. Law of supply, shift in supply curve

Module – III   Theory of Production, cost and firm’s behaviour

  1. Meaning, concept of production
  2. Factors of production and production function
  3. Fixed and variables factors
  4. Law of variable proportion and law of returns to scale
  5. Concept of cost, cost function, short run cost, long run cost
  6. Economies and diseconomies of scale
  7. Explicit cost and implicit cost, private and social cost
  8. Perfect competition
  9. Monopoly, Monopolistic competition
  10. Oligopoly, pricing in various market structures

Module – IV   Macro Economics Analysis

  1. Circular flow of income, national income concepts
  2. Theory of income and employment: Classical, Modern (Keynesian) approach
  3. Circular flow of income, national income concepts

Recommended Books:
Managerial Economics by Ivan Png, Blackwell Publishers
Managerial Economics in a global economy by Dominick Salvotare, Thomson South Westem
Publications
Economics by Lipsey, Oxford University Press
Htanagerial Economics: Economic Tools for today’s decision makers by Paul G. Keat, Philip
K.Y. Young, Pearson Publications
Managerial Economics by L.Varshney and K.L. Maheshwari, SultanChand and Sons
Managerial Economics, D.N.Dwivedi, Vikas Publishing Co