The McGraw-Hill companies com oi ARP BSTIPL FSS ROMNES, and Financial Analysis vIwww.ebook-converter.com gogle Books Download Demo Version Third Editionht {S4lavwaxebook-converter.com Published by Tata McGraw-Hill Publishing Company Limited, ‘7 West Patel Nagar, New Delhi 110.008 Goegle-Books-Bownload Demo Version Copyright © 2008, by Tata McGraw-Hill Publishing Company Limited. Fourth h “wWww.ebook-converter.com fo part of this put may be reproduced or distributed in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise or stored in a database or retrieval system without the prior written permission of the publishers. The program listings (if any) may be entered, stored and Google Books. Gownlgad Demo Version ‘Tata McGraw-Hill Publishing Company Limited ISBN-13: 978-0-07-007803-1 http-/www.ebook-converter.com aging Director: Ajay Shuekta 1 Managet— Publishing (B&E/HSSL and Sehool): Biju Kumar ial Manager—B&E: Tapas K Maji Edijorial Exgeutin Gaegle-Bgeks:Pewnload Demo Version General Manager—Marketing (Higher Ed & School): Michael J. Cruz ‘Asst, Product Manager: Vijay S Jagannathan Controllet—Prodution: Rajender P. Ghansela ‘Asst. General Manager—Production: B. L. Dogra Information contained in this work has been obtained by Tata McGraw-Hill, from sources believed to be reliable, However, neither Tata McGraw-Hill nor its: authors guarantee the accuracy or completeness of any information published herein, and neither Tata McGraw-Hill nor its authors shall be responsible for any errors, omissions, or damages arising out of use of this information. This work is published with the understanding that Tata McGraw-Hill and its authors are supplying information but are not attempting to render engineering or other professional services. If such services are required, the assistance of an appropriate professional should be sought. ‘Typeset at Tej Composers, WZ-391, Madipur Village, New Delhi 110 063 and printed at ‘Gopsons Papers Ltd., Noida 201 301 ‘Cover Design: K Anoop arahttp://www.ebook-converter.comContents Google Books Download Demo Version Preface to the Third Edition vil Prei to the First Eaitic ix httpefwww.ebook-converter.com x http://vidiiiiebook-converter.com Managerial Economics Defined 16 Oo 17 18 Nature of Managerial Economics ‘Scope of Managerial Economi Self-assessment Questions _ 1.12 2. DEMAND ANALYSIS: DEMAND DETERMINANTS, gE Introduction Basic Laws of Consumption Law of diminishing marginal wility 22 Exceptions to tke law of diminishing marginal utility 2.2 The law of equi-marginal utility 2.3 Properties of indifference curve 2.4 Consumer equilibrium 2.5 Demand Analysis 2.6 What is demand? 2.6 Nature and types of demand 2.6 Factors determining demand 2.8 ny ioGontents Demand function 2.9 hitp: Jui ebook-converter.com Operation of the law of demand 2.10 Change in demand 211 in demand 2.17 Goog fi BGKSDownload Demo Version Gtk of the law of demand 2.15 Chapter Summary 2.15 http:/iwwWébook-converter.com Unrr Tt Exasticrry or Demanp Measurement of elasticity 34 Types of elasticity 3.7 http :7AisoANehoGkstonverter.com ms Point elasticity and Arc elasticity 3.17 Arc elasticity Chapter Summary 20 - Google:Books Download Demo Version 4 \ND FORECASTING 4.14.25 Introduction 4.1 The Need for Demand Forecasting 41 Factors Governing Demand Forecasting 42 Functional nature of demand 4.2 Types of forecasts 4.2 Forecasting level 42 Degree of orientation 4.3 Established or new products 4,3 Nature of goods 4.4 Degree of competition 44 Other factors 44 Market demand 44 Functional nature of market demand 44 What constitutes a scientific approach to forecasting? 4.5 Methods of Demand Forecasting 46 Other methods 4.16ome = Chapter Summary 4.18 http: inv eboSk-converter. com Goo OoKS Downloa emo ersions: Production Function Input-Qutput Relationship or Production Function 54 Production function with one variable input and laws of retums 5.4 http:/qigwrebook:corrverter:com 56 Features of an isoquant 5.6 Marginal Rate of Technical Substitution 58 Googie-Beeke Bewnload Demo Version” Production Function where input factors are multiple 3.13 Cobb-Douglas Production Function 5.14 http: Main oppor converter. com Google Books Download Demo Version ner Summary 3.19 Self-assessment Questions 5.20 & COSTANALYSIS. 6.28 Introduction 61 The Concept and Nature of Cost 61 Long-run vs short-run costs 6.2 i = F Semi-fixed or semi-variable costs 6.3 Marginal cost_6.3 Controllable vs non-controltable costs 6.4 Opportunity vs outlay costs 6.4 Incremental vs sunk costs 6.5 Explicit vs implicit costs 6.6 Out-of-pocket vs book costs 6.6 Replacement costs vs historical costs 6.7 Past costs vs future costs 6.7 Separable costs vs joint cosis 6.7fe Gontents Accounting costs vs econamie costs 6.8 http://MIWMSB65K-converter.com Basis of distinction among cost concepts 6.9 Cost records and selection of data 6.10 Cost-output Relationship 6.10 Googlé:BdbKs Download Demo Version Optimum Size of the Firm 6.15 Chapter Summary 6.17 http: AKiGiieKiook-converter.com wants Introduction: Wl Break-even Analysis 2 Googlé-866ks DéWnioad Demo Version ‘Assumptions underlying break-even analysis 7.6 Different formulae used in break-even anailysis and their applications 7.6 Application of break-even analysis. 7.7 http: (AYER book-converter.com ui Selfrassessment Questions 7.14 Gobgi BOOKS DOWNS DEMO Version” 8. MARKETS Introduction on Market defined 8.3 Size of market 8.4 Market structure 8.4 Competitive Market Situations 84 Types of competition 8.5 Perfect competition and perfect market 8.5 Imperfect competition 8.6 Role of time factor in determination of price 8.7 Equitibrium point 88 Perfect competition: The individual firm 8.8 Perfect competition: The firm and the industry 8.8 Price-Output Determination in Case of Perfect Competition 8.9 Short-run 8,9 Monopoly B12 Features of monopoly 8.12 What causes monopoly? 8.13Contents ze | Price-Output Determination in Monopoly 8.14 http://isGrebdéok-converter.com When price discrimination is followed? 8.15 How can markets be separated? 8.15 Advantages of price discrimination 8.15 Goog E-Biiks:MowWhload Demo Version ‘Comparison between perfect competition and monopoly 8.17 Monopolistic Competition B17 Product differenti m 8.17, http:/Wawicebook-oenverter.com 818 Short-run 8.18 Long-run 8.18 Why average cost (AC) is not equal to Goog:Bé5ks-DowAlead Demo Version ‘monopolistic competition are inefficient? 8.20 Pricing Methods 821 Pricing objectives 8.21 http://inganie.etiook-converter.com Pricing strategies in times of stiff price competition 8.25 Chapter Summary 8.26 Goo gle Books Bownload Demo Version. ue m ersion 9. TYPE OF BUSINESS ORGANISATIONS 93-952 Introduction 93 Factors Affecting the Choice of Form of Business Organisation 94 Forms of Business Organisation 95 Sole Trader 95 Features 9.5 Suitability 9.7 Partnership 97 Features 9.7 Partnership deed 9.9 Kinds of partners 9.9 Registration of partnership 9.10 us, obligations and ies of partners 9.10 iglus of partners 9.10 Obligations and Liabilities of parmers 9.10 Obligations and Liabilities to third parties 9.11| ies Content Implied authority of partner as an agent of the firm 9.11 http:/Aiiititiecélbook-converter.com om Company defined 9.13 Features 9.14 Kinds of companies 9.15 Googl#BOGKS-Diwsiload Demo Version Contents of prospectus 9.20 Suitability 9.23 Cooperative Societies 9.23 http://www ebeok-converter.com Public Enterprises 9.26 Genesis of public emerprises 9.26 Googl¢:#66ksbowntoad Demo Version rms of public enterprise 9.27 Departmental Undertaking 9.27 Features 9.27 http:/Miasebook-converter.com 778 Features 9.29 Government Company. 9.30 Features 9.31 Google Byoks:Pownload Demo Version Public Enterprises: A critical evaluation 9,36 Disinvestment, the Current'Trend 937 Chapter Summary 9.37 Sole trader 9.38 Partnership 9.38 Joint stock company 9.40 Formation of a company 9.41 Important documents 9.41 Cooperative societies 9.42 Public enterprise 9.42 Self-assessment Questions 9.44 40. NEWECONOMIC ENVIRONMENT 10.1-10.35 New Economic Environment 10.2 A backdrop to the new industrial policy, 1991 10.2 New industrial policy (NIP), 1991 10.3 Critical evaluation of the new industrial policy 10.4 Trade and capital flow reforms 10.6Contents Industrial deregulation 10.7 http://MiWi SBSGR-COfVetter.com Privatisation 10.11 Why privatisation? 10.11 Globalisation 10.12 Goog K°BRSKSDiwitload Demo Version Consequences of globalisation 10.15 India and the WTO 10.15 htt Aigner vironi a Liberalisation Scenario 10.16 pipe poe eonverter.com Critical evaluation of LPG policies 10.20 Upswing in Indian Transnationals 10.22 Googie Bésks Dowhioad Demo Version elfrassessment Questions 10.26 Annexure 10.1: Indian Industrial Policy 10.31 Industrial Policy Resolution, 1948 10.31 i 10.31 http: Aye FROOR-Gonverter.com Industrial Policy Statement, 1973 10.33 Industrial Policy Statement, 1980 0 33 Ingustri: Gok Ke" late nie 10.34 Google E SéWnload Demo Version 1 Cina CCIE 11. GAPITAL: TYPES AND SOURCES 11.3-11.42 Introduction 113 Capital 113 Significance of Capital 14 Need for Capital 14 Types of Capital 14 Fixed capital 1.5 Types offixed assets 11.5 Working capital 11.5 Features of working capital 12.6 Components of working capital 11.6 Working capital cycle 11.6 How much to invest in working capital? 11.7 Factors determining the requirements of working capital 11.7 Methods and Sources of Finance 11.10EB Contents Methods of Finance 11.10 http: iiiiKbOok-converter.com rm) wn capital 11.1 Share capital 11.1 Retained profits 11.12 GoogksBséks’ Download Demo Version Government grants and loans 11.13 IL. Medium-term Finance 11.13 Bank loans if.13 http://www:ebpok-converter.com Venture capital 11.13 Ill. Short-term Finance 1.14 Googléedks Download Demo Version Trade credit 11.1- Debt factoring or credit factoring .14 Advance from customers 1115 http://w obk*corverter-cont” Characteristics of common methods of finance 11.15 Capital Markets: Indian Scenario 11.16 Institutions Providing Long-Term Finance 1.17 GoogleRoeks,Pownload emo Version Chapter Summary 11.21 Self-assessment Questions 11.23 Annexure d1.1 11.31 How to Forecast the Requirement of Long-term Funds? 1131 Capital budget 11.31 Estimation of working capital requirements 11.32 Trading forecast 11.35 Cash flow forecast (Cash budget) 11.36 Consequences of Incorrect Forecasting 11.39 Importance of Capital Budget, Trading Forecast and Cash Flow Forecast 11.39 Irsportant points to be noticed 11.42 12. CAPITAL BUDGETING 12.1-12.41 Introduction 12.1 Nature of Capital Budgeting 12.1 Significance of Capital Budgeting 12.2 Complications underlying capital budgeting decisions 12.2