102 / 102 E : Managerial Economics
Unit – I: Nature and Scope of Managerial Economics
Fundamental economic concepts . Opportunity cost, Discounting principle, Time perspective,Incremental reasoning, Equi.marginal concept. Economics of risk, uncertainty and asymmetricinformation and market signaling. Role of managerial economics in decision.making.Managerial Economics and Econometric models:Optimization – Profit Maximization by total revenue and cost approach. New Tools for Optimization : Bench Marking and Total Quality Management.
Unit – II: Demand & Supply Analysis:
Concepts, Determinants, Types and Law of Demand – Engel’s law –
Cardinal and ordinalapproaches - Indifference curve analysis - International convergence of tastes – Budget line – Utility maximization – Expenditure minimization – Income, price and cross elasticities of demand – Relationships between demand, indirect utility and expenditure function – Consumer surplus – Market supply, Market equilibrium and Non.clearing markets theory.
Unit – III: Production and Cost Analysis
Production function Law of variable proportions and returns to scale. Least – Cost inputcombination – expansion path – Ridge lines. Economics and diseconomics of scale – Economicsof Scope. Learning Curve. Cobb-Douglal and CES production functions. Types and conceptsof costs – Cost Control and Reduction. Short-run and Long-run Cost functions. Cost controland Break even Analysis.
Unit – IV: Market Structures:
Price Determination under Perfect Competition, Monopoly , Oligopoly and MonopolisticCompetitions – Strategic behavior of firms: Nash equilibrium – Prisoner’s dilemma – Enforcinga cartel – Dealing with cheaters – the advantage of being first . Price and non.price competition:limit pricing, price retaliation, capacity expansion and market saturation –Trigger and Tit for tat .strategic moves – threats, commitments and credibility – Entry deterrence .
Unit –V: Macro Economics and Business:
Nature, Concepts and Measurements of National Income, Determination of National Income,Classical and Keynesian Approaches. Types of Inflation: Demand pull and cost push inflation,Philips curve, Stagflation. Concepts of Economic growth and Development, Harrod – Domar growth model, the role of technical progress in economic development
Suggested Books :
12.Dominick Salvatore, 2006, Managerial Economics in Global Economy, Thomson.
Keat, 2007, “Managerial Economics”, 4
H.Craig Petersen, W.C. Lewis, S K Jain, 2006, Managerial Economics, Pearson15.B. Keating, J. H. Wilson, 2006, Managerial Economics , Biz.Tantra.16.Besank D, etal, 2005, Economic and Strategy ,Wiley.17.Joel Dean , 2005, Managerial Economics , PHI.
Samuelson and Nordhani , 2005, 18
Edition, Tata McGraw Hill.19.Rangarajan C and Dholakiya, 2004 , Principles of Macro Economics, TMH.20.D.N. Dwivedi, 2006, Managerial economics Vikas21.Thomas Maurice, 2006 , Managerial Economics, TMH.22.Suma Damodaran, 2006, Managerial Economics ,Oxford University Press.23.D.M. Mithani, 2006, Managerial economics – HPH.24.Hirschey, 2006, “Economics for Managers”, Thomson.
Welch, Economics Theory and Practice, 7