MBA I Year, I Semester
Course No. GR14E5002: Managerial Economics
L-4; P-0; T-0; Credits-4]
[Max. Marks: 100 (Int: 40, Ext: 60)
Objective: Objective of this course is to understand the relevance of economics in business management.
This will enable the students to study functional areas of management such as Marketing,
Production and Finance from a broader perspective.
Outcome: After studying this course students will able to understand the relevance of economics in
business management.
Unit-1: Introduction to Managerial Economics: Nature and functions of the Economic System - Central
Problems of an Economic System - Definition, Nature and Scope, Relationship with other areas in
Economics, Production Management, Marketing, Finance and Personnel, Operations research The role of managerial economist- Optimization techniques, optimization with calculus, New
management tools of optimization.
Unit-2: Basic economic principles: The concept of opportunity cost, incremental concept, scarcity,
marginalism, Equi-marginalism, Time perspective, discounting principle, risk and uncertaintyTheory of Demand: Demand Analysis, Elasticity of demand, types and significance of Elasticity of
Demand. Demand estimation – Marketing research approaches to demand estimation. Need for
forecasting, forecasting techniques. Supply Analysis – Supply function, the Law of Supply,
Elasticity of Supply.
Unit-3: Production Analysis: Production function, Marginal Rate of Technical Substitution, Isoquants and
Isocosts, Production function with one/two variables, Cobb-Douglas Production Function,
Returns to Scale and Returns to Factors, Economies of scale.
Unit-4: Cost Theory and Estimation, Market Structures: Cost concepts, determinants of cost, cost-output
relationship in the short run and long run, short run vs. long run costs, average cost curves,
Overall Cost leadership. Features and Types of different competitive situations - Price-Output
determination in perfect competition, Monopoly, Monopolistic competition, Monopsony,
Duopoly and Oligopoly both the long run and short run. Pricing philosophy
Unit-5: Pricing Practices and Profit Theories: – Pricing methods in practice: Price discrimination, product
line pricing. Pricing strategies: skimming pricing, penetration pricing, Loss Leader pricing. Pricing
of multiple products. Profit Management: Nature, scope, Theories of profit, Measurement
policies.
Text books:
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P. L. Mehta: Managerial Economics.
YogeshMaheshwari, Managerial Economics, PHI, 2012
Other Recommended Books:
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Edwin Mansfield: Study Guide and Cases for Managerial Economics, Viva-wwn, 2009.
Suma Damodaran: Managerial Economics, Oxford, 2009.
Keat: Managerial Economics: Economic Tools for Today’s Decision Makers, Pearson, 2009.
Nadar &Vijayan: ManagerialEconomics, PHI, 2009.
Froeb: Managerial Economics - A Problem Solving Approach, Cengage, 2009.
James L. Pappas and Engene F. Brigham: Managerial Economics, Pearson, 2009.
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Thomas Maurice: Managerial Economics, TMH, 2008.
Dhires Bhattacharya and PranabChakrabarthi: Business Economics, BS Publications, 2002.
Craig H. Petersen, W. Cris Lewis and Sudhir K. Jain: Managerial Economics, 14theditionPearson,
2012.
Dominick Salvatore Managerial Economics 7th Edition Oxford 2012.
W.Bruce Allen, Managerial Economics Theory, Applications, and Cases, Viva7th Edition 2011.
Sumitrapal, Managerial Economics Cases & Concepts, Macmillan, 2011.
Geetika, Managerial Economics 2nd Edition, TMH, 2012,