20MBA12 Managerial Economics syllabus for MBA

Managerial Economics:

Meaning, Nature, Scope, & Significance, Uses of Managerial Economics, Role and Responsibilities of Managerial Economist. Theory of the Firm: Firm and Industry, Objectives of the firm, alternate objectives of firm.

Managerial theories:

Baumol’s Model, Marris’s Hypothesis, Williamson’s Model.

Law of Demand, Exceptions to the Law of Demand, Elasticity of Demand –Classification of Price, Income & Cross elasticity, Advertising and promotional elasticity of demand. Uses of elasticity of demand for Managerial decision making, Measurement of elasticity of demand. Law of supply, Elasticity of supply,

Demand forecasting:

Meaning & Significance, Methods of demand forecasting. (No problems).

Concepts of Production, production function with one variable input - Law of Variable Proportions. Production function with 2 variable inputs and Laws of returns to scale, Indifference Curves, ISO-Quants & ISO-Cost line, Least cost combination factor, Economies of scale, Diseconomies of scale. Technological progress and production function. Types of cost, Cost curves, Cost – Output Relationship in the short run and in the long run, LAC curve

Break Even Analysis – Meaning, Assumptions, Determination of BEA, Limitations, Uses of BEA in Managerial decisions (with simple Problems).

Perfect Competition, Features, Determination of price under perfect competition, Monopoly: Features, Pricing under monopoly, Price Discrimination. Monopolistic Competition: Features, Pricing Under monopolistic competition, Product differentiation. Oligopoly: Features, Kinked demand Curve, Cartels, Price leadership.

Descriptive Pricing Approaches: Full cost pricing, Product line pricing, Pricing Strategies: Price Skimming, Penetration Pricing, Loss leader pricing, Peak Load pricing.

Nature, Scope, Structure of Indian Business Environment – Internal and External Environment. Political and Legal Environment, Economic Environment, Socio – Cultural Environment, Global Environment

Basic Macro Economic Concepts:

Open and Closed Economies, Primary, secondary and Tertiary sectors and their contribution to the economy. SWOT Analysis for the Indian economy. Measuring the Economy: Measuring GDP and GDP Growth rate, Components of GDP.

Industrial Policies and Structure:

A critical look at Industrial Policies of India, New Industrial Policy 1991; - Private Sector- Growth, Problems and Prospects, SMEs –Significance in Indian economy-problems and prospects.

Fiscal policy and Monetary Policy. Foreign Trade:

Trends in India’s Foreign Trade, Impact of WTO on India’s Foreign Trade.

Course outcomes:

At the end of the course the student will be able to:

1. The student will understand the application of Economic Principles in Management decision making.

2. The student will learn the micro economic concepts and apply them for effective functioning of a Firm and Industry.

3. The Student will be able to understand, assess and forecast Demand.

4. The student will apply the concepts of production and cost for optimization of production.

5. The student will design Competitive strategies like pricing, product differentiation etc. and marketing according to the market structure.

6. The student will be able to understand macroeconomic concepts.

Practical Component:

• Assessment of Demand Elasticity – Price, Income, Cross, Advertising.
• Demand Forecasting:
• Application of qualitative and quantitative methods of demand forecasting to various sectors (Automobile, Service, Pharmaceutical, Information Technology, FMCG, Hospitality etc.) in India.
• Preparing a Project proposal for a Business Venture.(Compulsory)
• CO-PO MAPPING

Question paper pattern:

• The SEE question paper will be set for 100 marks and the marks scored will be proportionately reduced to 60.
• The question paper will have 8 full questions carrying equal marks.
• Each full question is for 20 marks.
• Each full question will have sub question covering all the topics under a Module.
• The students will have to answer five full questions; selecting four full question from question number one to seven and question number eight is compulsory.
• 80 percent theory and 20 percent problems in the SEE.

Textbooks

1 Managerial Economics Geethika, Ghosh & Choudhury McGraw Hill 2/e, 2011

2 Managerial Economics Dominick Salvotore, Oxford Publishers 2e, 2016

Reference Books

1 Managerial Economics R. Panneerselvam, P. Sivasankaran, P. Senthilkumar Cengage 2015

2 Managerial Economics Samuelson & Marks Wiley 5/e, 2015

3 Managerial Economics D.M Mithani HPH 2016

4 Managerial Economics H.L Ahuja Samuelson & Marks S.Chanda 2014