Managerial economics-Definition and scope. Steps in decision making, Basic concepts that aid decision making incremental concept discounting concept, opportunity cost concept, time concept, equi-marginal concept. Application of these concepts using case lets.
Demand analysis-Factors affecting demand, equilibrium of the consumer based on cardinal and ordinal utility, changes in consumers equilibrium-price effect, income effect and substitution effect. Elasticity of demand, different types of elasticity, their applications.
Module ll
Demand forecasting, Methods of forecasting demand for consumer non durable, consumer durables and capital goods, uses of demand forecast. National income and use of National income data for demand forecasting.
Module lll
Supply-Factors affecting supply. Cost analysis concepts, short run and long run cost curves, why cost curves are "U" Shaped? Laws of returns, Economies of scale and economies of scope, Production possibility curve, production function, production function with two variables. loquats, best production Possibility.
Cost-Volume-profit analysis-calculation of break -even point, Margin of safety, calculation of margin of safety, calculation of output for earning in thetargeted profit, calculation-of break-even point for multi-product firms- Uses of break-even analysis for decision –making.
Module lV
Economic systems, lnvestment decision under capitalism. Project evaluation technique, merits and de-merits of each technique; extended benefit cost analysis, EIA statement. lmpact of Fiscal and Monetary policies on resource allocation. Balance of payment and its impact on the economy.
Module V
Market structure-Different types of market-perfect, imperfect monopoly, duopoly, oligopoly, monopolistic, monophonic and bilateral monopoly. Price discrimination under monopoly-conditions for price discrimination, when price discrimination is Profitable?
Pricing- pricing in practice, different pricing policies, transfer pricing. Theories of the firm.
