Managerial Economics: Meaning, Nature, Scope. & Significance, Uses of Managerial Economics, Objectives and alternative hypothesis of the firm – Law of Demand, Exceptions to the Law of Demand, Elasticity ofDemand- Price, Income, Cross and Advertising Elasticity, Uses of Elasticity of Demand for Decision Making, - Demand Forecasting: Meaning and Significance.(problems on Elasticity of Demand only).
Production Analysis: Concept, Production Function- Total, Average, & Marginal Product –Law of Variable Proportions & ISO-Quants & ISO Costs - Least cost factor combination- Returns to Scale- Economies andDiseconomies of Scale - Technological progress and production function
Cost and Revenue Profit Functions: Cost Concepts, Fixed and variable costs- Total Cost, Average Cost, Marginal Cost, Opportunity Cost. - Short-run and Long-run Cost Curves
Profits: Determinants of Short-Term & Long Term Profits,Measurement of Profit.
Break Even Analysis- Meaning, Assumptions, Determination of BEA,Limitations and Uses of BEA in Managerial Economics (Problems onBEP only)
Market Structure: Perfect Competition: Features, Determination ofPrice under Perfect Competition - Monopoly: Features, Pricing underMonopoly, Price Discrimination - Oligopoly: Features, Kinked DemandCurve, Cartel, Price Leadership - Monopolistic Competition: Features,Pricing under Monopolistic Competition, Product DifferentiationPricing - Descriptive Pricing- Price Skimming, Price Penetration.
Indian Economic Environment: Overview of Indian Economy, Recent changes in Indian Economy. Measurement of National Income: Basic Concepts, Components of GDP- Measuring GDP and GNP, Difficulties in measuring National Income, Growth Rate.
Business Cycle – Features, Phases, Economic Indicators, Inflation:Types, causes, Measurement, Kinds of Price Indices,
Primary, Secondary and Tertiary Sectors and their contribution to theEconomy, SWOT Analysis of Indian Economy.
Industrial Policies and Structure: A critical look at Industrial Policies of India, New Industrial Policy 1991; Disinvestment in PSUs - Private Sector- Growth, Problems and Prospects, SMEs – Significance in Indian economy-problems and prospects
Economic Policies: Fiscal Policy: Objectives, Instruments, Union Budget,Monetary Policy: Objectives, tools for Credit Control.
Globalization: Meaning and Implications, Phases, Impact ofGlobalization on Indian Economy.
Foreign Trade: Trends in India’s Foreign Trade, Impact of WTO onIndia’s Foreign Trade.
Note 1: Related case studies to be discussed.Note 2: 75 percent theory and 25 percent problems from Unit 1 & 3
Practical Components:
• Assessment of Impact of advertisement or sales promotion on thedemand of a product (Preferably FMCG goods)
• Study of demand elasticity for a product when there is a priceincrease or price decrease.
• Demand forecasting – Mini project may be given to students toassess the demand for a product or a service using any method.
• Preparing a project proposal for a new business venture tounderstand the BEP using real time data.
• An in-depth study of economic indicators on the growth rate 8
• Analysis of recent budget, fiscal discipline and disinvestmentproposals of the GOI
• A study on the effect of monetary policy on banking and NBFCs
• A futuristic study of leading Indian industries and observations ofCAG on major issues.