22MBA26 Managerial Economics syllabus for MBA

Introduction:

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 model of growth maximization, Williamson’s model of managerial discretion.

Demand Analysis

Law of Demand, Exceptions to the Law of Demand, Elasticity of Demand , Classification of Price, Income &Cross elasticity, 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. (Problems on Price elasticity of demand, and demand forecasting using Time-series method).

Cost Analysis & Production Analysis

Concepts of Production, production function with one variable input - Law of Variable Proportion, Laws of returns to scale, Indifference Curves, ISO-Quants & ISO-Cost line, Economies of scale, Diseconomies of scale. Types of cost, Cost curves, Cost – Output Relationship in the short run and in the long run, Long- Run Average Cost ( LAC) curve

Break Even Analysis–

Meaning, Assumptions, Determination of BEA, Limitations, Margin of safety, Uses of BEA In Managerial decisions (Theory and simple Problems).

Market structure and Pricing Practices

Perfect Competition:

Features, Determination of price under perfect competition,

Monopolistic Competition:

Features, Pricing Under monopolistic competition, Product differentiation.

Oligopoly:

Features, Kinked demand Curve, Cartels, Price leadership.

Monopoly:

Features, Pricing under monopoly, Price Discrimination.

Descriptive Pricing Approaches:

Loss leader pricing, Peak Load pricing, Transfer pricing.

Indian Business Environment

Nature, Scope, Structure of Indian Business Environment, Internal and External Environment. Political and Legal Environment, Economic Environment, Socio– Cultural Environment, Global Environment. Private Sector, Growth, Problems and Prospects, SMEs, Significance in Indian economy, challenges and prospects.

Fiscal policy and Monetary Policy:

Meaning of Fiscal policy, three main types of fiscal policy – neutral policy, expansionary, and contractionary. Monetary policy: Meaning,

Objectives of monetary policies:

Controlling inflation, Managing employment levels, and Maintaining long-term interest rates. (Theory only)

Indian Industrial Policy :

New industrial policy 1991, Production Linked Incentive (PLI) scheme for Promoting manufacturing of Telecom & Networking Products in India, New economic initiatives proposed by Indian government for economic growth Private Sector-Growth- like Atma Nirbhar Bharath Abhiyan.

Assessment Details (both CIE and SEE)

• The weightage of Continuous Internal Evaluation (CIE) is 50% and for Semester End Exam (SEE) is 50%.
• The minimum passing marks for the CIE is 50% of the maximum marks.
• Minimum passing marks in SEE is 40% of the maximum marks of SEE.
• A student shall be deemed to have satisfied the academic requirements (passed) and earned the credits allotted to each course if the student secures not less than 50% in the sum total of the CIE (Continuous Internal Evaluation) and SEE (Semester End Examination) taken together.

Continuous Internal Evaluation:

There shall be a maximum of 50 CIE Marks.

A candidate shall obtain not less than 50% of the maximum marks prescribed for the CIE.

CIE Marks shall be based on:

a) Tests (for 25Marks) and

b) Assignments, presentations, Quiz, Simulation, Experimentation, Mini project, oral examination, field work and class participation etc., (for 25 Marks) conducted in the respective course. Course instructors are given autonomy in choosing a few of the above based on the subject relevance and should maintain necessary supporting documents for same.

Semester End Examination:

The SEE question paper will be set for 100 marks and the marks scored will be proportionately reduced to 50.

• The question paper will have 8 full questions carrying equal marks.
• Each full question is for 20 marks with 3 sub questions.
• Each full question will have sub question covering all the topics.
• The students will have to answer five full questions; selecting four full question from question number one to seven in the pattern of 3, 7 & 10 Marks and question number eight is compulsory.
• The SEE question paper should have the weightage of 80% theory and 20% problems

Suggested Learning Resources:

Books

1. Managerial Economics by Geethika,Ghosh & Choudhury, McGrawHill 2/e,2011

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

3. Managerial Economics by D.M Mithani, HPH publications, 2016

4. Managerial Economics by Samuelson & Marks, Wiley, 5/e,2015

5. Managerial Economics by Maheshwari K. L., Varshney R.L., Sultan Chand & Sons.

Course outcomes

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

CO1 The student will understand the application of Economic Principles in Management decision making. L2

CO2 The student will earn the microeconomic concepts and apply them for effective functioning of a Firm and Industry. L3

CO3 The Student will be able to understand, assess and forecast the demand. L5

CO4 The student will apply the concepts of production and cost for optimization of production L3

CO5 The student will design competitive strategies like pricing, product differentiation etc. and marketing according to the market structure. L6

CO6 The student will be able to understand the impact of macroeconomic concepts. L2