Economics: Nature and scope of managerial economics. Economic theory and managerial economics.
Cost Concepts: Types of costs - Cost functions. Cost controls: reduction – Tools & Areas. Pricing policies - methods. Capital budgeting - cost of capital. Appraising project profitability.
The essentials of demand and supply: The law of demand. Market demand curve. Other determinants of market demand. The law of supply. Determinants of market supply. The market mechanism.Price elasticity of demand.
Profit and revenue maximization: Optimal input combination. Total revenue maximization.
Market structure: Perfect competition and monopoly. Characteristics of monopolistic competition. Oligopoly.
Operations Research techniques in managerial economics: Inventory models. Theory of games. Decision theory, Risk and Uncertainty, Measuring risk, Consumer behavior and risk aversion, Decision making under uncertainty with complete ignorance