An Introduction to Managerial Economics

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05 MBA 12
Managerial economics
No. of Lecture Hrs / Week : 04
Total No. of Lecture Hrs
: 56
MODULE 1

IA Marks
: 50
Exam Hours : 3 Hours
Exam Marks : 100
7 HOURS

Introduction of Economics: Managerial Economics – Nature, Scope & Significance, Role of Managerial Economist in decision-making – Relationship of Managerial Economics with functional areas of business

MODULE 2

7 HOURS

Fundamental Principles/Concepts of Managerial Economics: Opportunity Costs, Incremental, Time perspective, and Discounting and Equimarginal principles. MODULE 3

7 HOURS

Concepts, Objectives of the firm, alternate objectives of firm, firm & industry. Theories of firm, Managerial theories: Baumol‟s model, Marris‟s Theory, Williamson‟s theory. Behavioural theories : Satisfying Behaviour, Simple model of Behaviourism.

MODULE 4

7 HOURS

Demand analysis, Law of Demand, Exceptions of law of demand, Elasticity of demand – Price, Income & Cross elasticity, Uses of elasticity of demand for Managerial decision making. Measurement of elasticity of demand. Advertising and promotional elasticity of demand. Demand forecasting: Meaning & Significance.

MODULE 5

7 HOURS

Production analysis: Concepts, Production function: Single Variable & Two Variable function. Total, Average, & marginal Product. Law of diminishing returns, returns to scale.

MODULE 6

7 HOURS

Costs & Revenue functions, short run and long run cost curves, combination, and expansion path. Economics and diseconomics of scale. Law of supply, Elasticity of Supply.
MODULE 7

7 HOURS

Market Structure: Perfect Competition, Features. Determination of pricing under perfect competition.
Monopoly: Features, Types of monopoly, monopoly power, Pricing under monopoly, Pric discrimination.
Oligopoly : Features, Kincked demand curve, cartels, Price Leadership. Monopolistic Competition: Features, Pricing under monopolistc competition, Product difeferentiation.
Descriptive Pricing Approaches: Full Cost Pricing, Product Line Pricing, Pricing, Pricing Strategis: Price Skimming, Penetration Pricing, Loss leader pricing. MODULE 8

7 HOURS

Profits – Nature, Measurement, Break-even analysis.
RECOMMENDED BOOKS:
1. Dominick Salvotore: Managerial Economics in Global economy 4 th edition Thomson Publication, 2004.
2. Dr D. M Mithani: Managerial Economics Theory and Application Himalayan Publication, 2/e, 2005
3. Craig Petrerson & Cris Lewis Managerial Economics 4th Edition Pearson Education / PHI 2003.
4. D N Dwivedi Managerial Economics, 6th editin, Vikas Publication, 2005. 5. Managerial Economics – Varshney & Maheshwari – Sultanchand, 2003 Reference Text :
1. Managerial Economics – M. L. Trivedi – TMH
2. Managerial Economics, Yogesh Maheshwari, Prentice Hall, 2 nd edition 3. Economics for Management texts and cases – Misra and Puri, HPH 4. Micro Economics Theory and Aplication – G S Maddala, TMH, 2nd edition 5. Micro Economics, Dominick Salvotore, Oxford Publishers, 4/e, 2004

6. The New Managerial Economics – William Boyes – Biztantra, 2005 7. Managerial Economics – Keating & Wilson – Biztantra, 2003-2004

MANGERIAL ECONOMICS
05 MBA 12
MODULE 1
A. INTRODUCTION TO ECONOMICS
B. NATURE, SCOPE & SIGNIFICANCE OF MANGERIAL
ECONOMICS.
C. ROLE OF MANAGERIAL ECONOMIST
D. RELATIONSHIP OF MANAGERIAL ECONOMICS
WITHFUNCTIONAL AREAS OF BUSINESS.

1. What is Economics?
- Economics Is A Social Science.
- What is Science?
Natural / Physical
Sciences.
- Types of Sciences
Social Sciences
2. Kautily‟s “Arthashastra”
3. Adam Smith (1776)
- “An Inquiry into the Nature and Causes of Wealth of
Nations”
- Economics Is A Study of Wealth, It Studies how wealth is
produced, distributed and consumed.
- Focus was on “ Wealth Creation”
- Philosophers like Aristotle; Carlyle condemned it as “
Dismal Science”, “ Mundane Science”.
4. Alfred Marshall (1890)
- “ Principles of Political Economy”.
- Economics is Study of Welfare.
- Not a study of “ Wealth...
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