Course

Unit 1

Introduction to Economics: The problems of wants, scarcity and choice – Difference between?microeconomics?and?macroeconomics.?Importance?and?limitations?of?Microeconomics?an d?Macroeconomics. Basic problems?of?Economics: What to Produce,?How to Produce, For Whom to Produce, Level of Resource Use and Flexibility – Production possibilities curve. Economic systems – Capitalism?–?Command?Economy?-?Mixed?Economy – Emerging Economy, Economics?and?business.

Unit 2

Demand?and?Supply?Analysis:?Concept?of?demand?-?Demand?schedule?and?demand?curve?– Change in demand?and?change?in?quantity?demanded?Law?of?demand:?Basis?for?its?operation?and?Factors influencing demand.?Elasticity of?demand: Types and measurement.?Supply:?Concept, Supply schedule and?supply?curve?-?Change?in?supply?and?change?in?quantity?supplied?– Law?of?supply, Factors influencing?supply,?Equilibrium.

Unit 3

Production, Cost and Revenue Analysis: Meaning of production – Production function – The?Law of Variable Proportions or the?Law of?Diminishing Marginal Returns – Returns to scale – Cost and production: Various?concepts?of?cost?-?Economies?of?scale. Revenue?function: Total,? Average and Marginal evenue –?Profit?maximization:?TR TC?and?MR-MC?approaches.

Unit 4

Theory?of?Markets:?Meaning?and?types?of?markets?–?Main?features?of?Competitive markets, Monopoly, Duopoly Monopolistic?and?Oligopoly?markets.?Price?discrimination:?Meaning?and?Types.

Unit 5

Macroeconomics: National income analysis: Meaning, Concepts and Measurement, Problems in?measurement?Concept?of?full?employment?Types?of?unemployment.??Business?cycles:?Meaning?a nd?Phases.Inflation:?Meaning,?Types and?control?of?inflation:?Monetary?and?Fiscal?policies.

Course Objective:

The?main?focus?is?on?making?the?various?theoretical?concepts?clear?and?intelligible?to?a?student. The objective is to help the student to understand the various economic parameters effectively?and?efficiently.?

Course Outcomes:

The student will be able:

CO1: To understand?the importance?of?economic concepts?for?managing?the?firms

CO2: To understand?various?theories?of?economics?that?can?be?applied?in?the?internal?and? external?decisions?to?be?made?by?managers

CO3: To analyze?the?demand?and?supply?conditions?and?assess?the?position?of?a?company

CO4: To design?competition?strategies,?including?costing,?pricing,?product?differentiation,?and

?market?environment?according?to?the?nature?of?products?and?the?structures?of?the?markets.?

CO5: To analyze?real-world?business?problems?with?a?systematic economic framework

Text Books:

• P Balasubramanian, Somasekharan T M – Economics for Decision Making – Kalyani
• Varshney, Maheswari – Managerial?Economics – Sultan?Chand?
• Mehta?P.?L. – Managerial?Economics – Sultan?Chand?&?Sons.
• Dwivedi?D.N. – Managerial?Economics – Vikas?Publishing?House

References:

• Koutsoyiannis?A. -?Modern?Micro?Economics,?Macmillan?
• Salvator,?Dominick – Managerial?Economics – McGraw Hill?
• Paul A Samuelson, Nordhans – Economics – Sultan?Chand?&?Sons