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