ME (MBA 1st)

Unit-I

Managerial Economics: Meaning, Nature, Scope & Relationship with other disciplines,

Role of managerial economics in decision Making, Opportunity Cost Principle, Production

Possibility Curve, Incremental Concept. Marginal Analysis: Law of diminishing marginal

utility, Law of equi-marginal utility, Indifference Curve Analysis: Meaning Assumptions

Properties, Consumer Equilibrium, Uses.

Unit-II

Demand Analysis and Theory of Production: Law of Demand: Meaning, Determinants,

Exceptions, Bandwagon and Snob effects, Demand function, Application of demand analysis

in managerial decision making. Elasticity of Demand: Meaning, Types & Degree of

elasticity of demand, Methods of measuring price elasticity of demand, Factors determining

the elasticity of demand, Demand Forecasting: Importance, Scope, Techniques of

forecasting. Theory of Production: Production function, Short run and Long run production, 

Analysis, Isoquants, Optimal combination of inputs, Application in managerial decision

making.

Unit-III

Theory of Cost and Market Structure: Cost Analysis: Cost Concepts and Determinants of

cost, Traditional and Modern Theory of Cost: Long run and Short run, Economy of scale,

Revenue Curve, Market Structure: Price Output Decision under Perfect Competition,

Monopoly, Monopolistic and Oligopoly Competition, Application in Managerial Decision

Making. Behaviour of Firms and Game Theory: Nash Equilibrium, Prisoner‟s Dilemma.

Unit-IV

Macro Economics: Concept of National Income: Conceptual Framework, Measure of

National Income, Methods of Measurements, Phillips Curve, Okun‟s Law and Kuznets

Curve, Classical Keynesian Theory, Investment Multiplier, Balanced Budget and Foreign

Trade Multiplier, Business Cycle: Concepts, Causes, Measures to control through Fiscal

and Monetary Policy, Inflation: Meaning, Types, Theories – Demand and Cost Push

Inflation, Causes, Effects and Cures of Inflation Through Price, Demand and Income Policies