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