Teaching Plan of the Course: 20-22 Managerial Economics-Lesson Plan
Syllabus
Module 1 Introduction to Managerial Economics
Micro & Macro Economics, Managerial Economics – Definition – Nature & Scope, Fundamental concepts in Managerial economics for decision making: Incremental Principle, Opportunity Cost, Discounting Principle, Time Concept, Equi-Marginal Principle – Illustrations, Decision Making – Process and Conditions – Difference between Risk & Uncertainty.
Module 2 Demand Analysis and Forecasting
Meaning of Demand – Types of Demand – Law of Demand & its Exceptions, Elasticity of Demand – Price Elasticity, Income Elasticity, Cross Elasticity, Promotion Elasticity, Applications of the concepts of Elasticity, Demand Forecasting – Process – Statistical & Non-Statistical Techniques, Utility Analysis & Consumer Behaviour – Equilibrium of the consumer using Cardinal & Ordinal Utility (Indifference Curve) Theories.
Module 3 Supply & Production
Theory of Production – Meaning of Production function, Production function with one variable input – Law of Variable Proportions – Returns to Scale, Production function with two variable inputs – Iso-quants – Producers’ Equilibrium, Economies of Scale – Types – Economies of Scope, Theory of Costs – Classification of Costs – Short Run & Long Run Cost Curves, Revenue Curves.
Module 4 Market Structure
Market – Meaning & Elements, Classification of Markets – Markets based on Competition, Theory of Firm – Profit Maximization Rules, Price & Output Determination under Perfect Competition, Price & Output Determination under Monopoly – Monopoly Price Discrimination, Price & Output Determination under Monopolistic Competition, Price & Output Determination under Oligopoly – Kinked Demand curve model only.
Module 5 Macro Economic Concepts
National Income Concepts – Measurement of National Income, An overview of Financial System in India, An overview of Fiscal & Monetary Policies in India, Balance of Payments: Causes of Disequilibrium & Remedies, Inflation in India – Causes & Remedies. Free Market Economy & Need for Government Intervention – An appraisal of Economic Reforms in India
Text book
- L. Mehta, Managerial Economics Analysis, Problems and Cases – Sultan Chand & Sons (ISBN 81-7014386-1)
References
- Dwivedi D.N, Managerial Economics, Vikas Publications (ISBN 8125910042)
- K. Dewett, Modern Economic Theory: Micro & Macro Analysis – Orient Book Distributors, New Delhi.
- L. Mote, Managerial Economics – Tata McGraw Hill, New Delhi
- Gaurav Dutt & Aswani Mahajan, Dutt & Sundaram’s Indian Economy – Sultan Chand & Sons
