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The course in Managerial Economics attempts to build a strong theoretical foundation for Management students. The course is mainly analytical in nature and focuses on clarifying fundamental concepts from microeconomic viewpoint. The students are expected to study and analyses the dynamics of managerial decision making through this course. Also wherever possible, students are expected to study, analyses and interpret empirical evidence and case studies available currently on various basic concepts.
Definition, Nature and Scope of Managerial Economics, Managerial Economics and Microeconomic and Macroeconomics. Managerial Economics and decision-making. Definitions of basic concepts: a. Positive and normative approach b. Optimization c. Marginal analysis d. Opportunity Cost. e. Economic Model. f. Statics and Dynamics. (8) 2. Meaning and determinants of demand. Demand Function. Law of Demand, Market Demand, Elasticity of demand. Types of elasticity. Measurement of elasticity. Significance and uses of the elasticity. Methods of demand estimation. Demand forecasting. Forecasting of an established product.
Forecasting of a new product. (8) 3. Production Function. Law of Variable Proportions. Law of supply. Elasticity of supply. Measurement of elasticity. Significance and uses of the concept of elasticity. (6) 4. Costs of production. Private costs and Social Costs. Accounting Costs and economic costs. Short run and Long Run costs. Economies of scale. Cost estimation. Methods of cost estimation and cost forecasting. Cost reduction and cost control. (6) 5. Pricing under various markets including: Perfect Competition, Monopoly, Monopolistic competition, oligopoly. Cartels. Price discrimination.
Measurement of Monopoly Power. (8) 6. Pricing Strategies and Methods – Cost plus pricing. Marginal cost pricing. Cyclical pricing. Penetration Pricing. Price Leadership. Price Skimming. Transfer pricing. (8) 7. Profit Policy: Break Even analysis. Profit Forecasting. (4) 8. Capital Budgeting – steps involved in project evaluation. Concept of time value of money. Methods of investment Appraisal: Discounted Cash flow. Net Present Value. Internal Rate of Returns. (8) 9. Need for Government Intervention in Markets. Price Controls. Support Price. Preventions and Control of Monopolies. System of Dual Price. 4) (Figures to the right indicate the number of lectures of 45 minutes each for the topic concerned. In addition to lectures, students are also supposed to attend about 15 tutorial sessions of 45 minutes each for assignments, discussions, presentations etc. ) Recommended Books: 1. Managerial Economics – Analysis, Problems and Cases, P. L. Mehta, Sultan Chand Sons, New Delhi. 2. Managerial Economics – Varshney and Maheshwari, Sultan Chand and Sons, New Delhi. 3. Managerial Economics – D. Salvatore, McGraw Hill, New Delhi. 4. Managerial Economics – Pererson and Lewis, Prentice Hall, New Delhi 5.
Managerial Economics – G. S. Gupta, T M H, New Delhi. 6. Managerial Economics – Mote, Paul and Gupta, T M H, New Delhi. 7. Managerial Economics –Joel Dean, Prentice Hall, USA. 8. Managerial Economics –H L Ahuja, S Chand & Co. New Delhi. Lecture Schedule: TopicTime Allotted By University 18 lectures of 45 minutes each = 360 Minutes = 6 Hours 28 lectures of 45 minutes each = 360 Minutes = 6 Hours 36 lectures of 45 minutes each = 270 Minutes = 4. 5 Hours 46 lectures of 45 minutes each = 270 Minutes = 4. 5 Hours 58 lectures of 45 minutes each = 360 Minutes = 6 Hours 8 lectures of 45 minutes each = 360 Minutes = 6 Hours 74 lectures of 45 minutes each = 180 Minutes = 3 Hours 88 lectures of 45 minutes each = 360 Minutes = 6 Hours 94 lectures of 45 minutes each = 180 Minutes = 3 Hours 10 Tutorial Sessions 15 lectures of 45 minutes each = 675 Minutes = 11. 25 Hours Total Time 75 sessions of 45 minutes each = 3375 Minutes = 56. 25 Hours Total Actual Working Days required to Complete Subject = 56. 25 / 1. 5 = 37. 5 Sessions of One and Half Hour Total Time required in terms of months = 37. 5 / (30-4-4) ? 37. 5 / 22 ? One Month 16 Days Approximately