MANAGERIAL ECONOMICS
Objective – The objective of this course is to develops managerial perspective to economic
fundamentals as aids to decision making under given environmentals constraints
Course Inputs :-
Unit – I 1) Managerial Economics - Nature, objectives scope and uses, Salient Features
Significance, Role, Role functions and Responsibilities of a Managerial Economist, Principles in
Managerial Decision Analysis incremental principle, opportunity lost principle, discounting
principles and equemarginal principle, Managerial Optimising Strategies, Firm concept
objectives importance, Distinction Between Plant, Firm and Industry.
Unit – II 1) Market Demand Analysis - Meaning, defination and Determinants of Demand,
Demand Function, The Law of Demand, Giften’s paradox, change in demand, Exceptions,
Network Externalities in Market Demand, Consumer Demand in the New Age Market.
2) Elasticity of Demand - The Concept of Elasticity of Demand, Types, Measurement, Factors
Influencing Elasticity of Demand, Advertising or Promotional Elasticity of Demand.
3) Consumer Demand - Meaning, Concept Indifference Curve, Properties, Consumer
Equilibrium with, Income Effect, price Consumption, Substitution Effect of Indifference Curve,
The Revealed Preference Theory
4) Demand Estimation - Estimating the Demand Function, Major Steps in Demand Estimation,
Functional Forms in Estimation.
5)Demand Forecasting and Demand-Led Business Strategy - The Meaning Significance,
Sources casting, Methods and of Forecasting Demand, Criteria, Business Forecasting Function,
Demand Sales Forecasting in Cyclical Markets:, Demand-Led Business Strategy.
Unit – III 1) Production - Concept, Function of Cobb-Douglas Production Function, The Law
of Variable Proportions, Estimation of Production Functions, Production Function Through ISOQuant Curve, Properties of ISO-Quant, Economic Region, Isocost Line, East-Cost-factor
Combination: Producer’s Equilibrium, Returns to Scale Explained Throuth Isoquants, Technical
Change
2) Supply Analysis - Meaning Determinants of Supply, The Law of Supply, Measurement of
Elasticity of Supply, Factors Determining Elasticity of Supply, Estimation of Supply Functions
3) Cost and Revenue Analysis - Concept, Definiton of Real Cost, Opportunity Cost or Money
Cost, Shunk Cost, Fixed and Variable Costs, Explicition implict Cost, Total Average and
marginal Cost, Short run & long run Cost functions, Explanation of the U-shape of ATC Curve,
Marginal Cost Curve (MC Curve), Total Marginal and Average Cost, Expirical Cost Function,
Technological Change and Long short Total, Marginal & Average Revenue in short and long
term, Estimation of Long Run Cost Functions, Cost-Output Elasticity, Minimum Efficient Scale,
Transaction Costs.
4) Economies of Scale and Scope - Large Scale of Production, The Size of Firm and Industry,
Economies of Scale, Internal Economies, External Economics, Diseconomies as Limits to Large
Scale Production, Managers per Operative Ration (MOR)
Unit IV – 1) Market Morphology - Meaning of Market, Classification of Market Structures,
Perfect Competition, Monopoly.
2) Firm :- Find and Industry, Meaning. - Staff, Sales, Growth, Managerial Utility
Maximization and ‘Firm’ and ‘Industry’, Profit Maximization.
3) Monopoly - Meaning of Monopoly, Measures, Sources, and price determination under
monopoly, Misconceptions about Monopoly Pricing and Profits, The Benefits of Monopoly,
Social Cost of Monopoly regulatory aspects of Monopoly, Market Niche.
4) Price Discrimination (Discriminating Monopoly) - Meaning, Forms, Degrees
Discrimination, Conditions Essential for Price Discrimination, Price Discrimination Profitable,
Dumping, Economic Effects of Price Discrimination, Social Justification of Price
Discrimination.
5) Monopolistic Competition - The Concept, Characteristics, Price Determination of a Firm
Under Monopolistic Competition, A Rule of Thumb for Advertising.
6) Oligopoly Market - Meaning and proparties Oligopoly, Kinked Demand, Kinked Demand
Curve Theory of Oligopoly Prices.
7) Pricing Policy and Methods - Meaning Objectives, Factors, Methods of Pricing Policy,
Major Issues of thePrice Policy of Control, Export Pricing, Predatory Pricing, Transfer Pricing.
Unit V – 1) Characteristics of K-Economy - The Meaning of Knowledge-based Economy,
Knowledge as a Factor of Production, The Features of K-Economy, The K-Economy: The Basic
Framework, K-Profit, K-Enterprise Portfolio Analysis, Paradigms of K-Economy, The KEconomy Indicators, K-Economy in a Developing Country.
2) Business Cycles - Features of a Business Cycle, Phases of a Trade Cycle, Important Business
Cycle Theories.
3) Inflation - Meaning of Inflation, Types of Inflation, Demand-Pull versus Cost-Push Inflation,
Causes of Inflation, Effects of Inflation.
Books Recommended
References:1. Managerial Economics
2. Managerial Economics
3. Managerial Economics
4. Managerial Economics
5. Moder Microeconomics
6. R. Cauvery
7. Baumol, million J
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8. Baya, Michael, R.
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9. Dean, Joel
10. Dhollakia R.H. & AL OzaStudents Oxford
11. Eaton, B. Curtis Diance Faton -
D. M. Mithani Himalaya Publicity House
Dominick Salvatore – oxford, 2007
Atmanand Excel Book 2007
Dwivedi D. N. Vikas Publication
Koutsyansis (Macmillion 2nd Edition)
Managerial Economics S. Chand & Co. New Delhi
Economic Theory and operation Analysis, Prentice
Hall, Landon.
Managerial Economics and Business Strategy.
McGraw Hill Inc. Newyork
Managerial Economics Prentice Hall Delhi.
Micro Economics management
University Press New Delhi.
Micro Economics Prentice Hall New
Jersey.