MANAGERIAL ECONOMICS

Course Objectives

On completion of this course the participants are expected

  • To empower students to acquire decision making ability in various business situations with Indian Economic Policies.
  • To apply economic reasoning in taking investment decisions.
  • To evaluate market analysis and forecast future business commensurate with Indian Economic Planning Goals.
  • To empower the students to understand Indian economic Policy’s threats and opportunities in business
  • To understand the Indian economic policies, Monetary and Fiscal policies.

UNIT I–The Economic Way of Thinking

Meaning, Nature, Scope and Importance of Managerial Economics- Meaning of Demand: Theory of demand, Law of Demand, Elasticity of Demand, Shifting and expansion of demand– Exceptions to law of demand. Demand Forecasting, Methods of Demand Forecasting– Meaning of Supply: Theory of supply- Market Equilibrium.

UNIT II– Production and Cost Analysis

Introduction, Meaning of Production and Production Function- Law of Variable Proportions- Cost of Production: Various types of cost of production (internal cost and external cost) Type I Cost of production: Short run cost of production analysis. Type II cost of production: Long run cost of production analysis– Externality- Positive and Negative Externality.

UNIT III– Objectives of Firm and Price Determination

Types of market structure–Perfect Competition and Imperfect Competition–price and output determination (short run and long run)- (1) Perfect competition (2)Imperfect Competition:- (i) Monopoly: (private monopoly and public monopoly–dead weight loss) (ii) Monopolistic competition (iii) Oligopoly competition: Price and output determination- Pricing Policies.

UNIT IV Indian Economic Policy

Indian Economic Growth and Development: Silent features of underdeveloped economy–economic factors and non–economic factors– poverty and inequality. Latest trend in Indian Economic Planning. Macroeconomic Overview – Fiscal and Monetary Policy –– Financial Sector Performance and impending reforms.

UNIT V

Indian Economic Growth and Development: Silent features of underdeveloped economy–economic factors and non–economic factors– poverty and inequality. Latest trend in Indian Economic Planning. Macroeconomic Overview – Fiscal and Monetary Policy –– Financial Sector Performance and impending reforms.

Learning Resources

  • Mark Hirschey and Bentzen, Managerial Economics. Cengage Learning, 2017.
  • Uma Kapila, “Indian Economy, 17th Edition: Performance and Policies”, Academic Foundation, 2017.
  • Craig H. Petersen, W. Chris Lewis and Sudhir K. Jain, Managerial Economics, Pearson Education, 9th Ed.,2017.
  • Chetan Ghate, Kenneth M. Kletzer,” Monetary Policy in India: A Modern Macroeconomic Perspective”, Springer, 25–Nov–2016.

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