MBA - Semester I MANAGERIAL ECONOMICS Course Code: MBA103 L-4, 7-0, P-0, C4 Objective: ‘The course intends to develop a perspective necessary for the application of modern economic concepis. percepts, tools and techniques in evaluating business decisions taken by a firm Unit-wise Course Contents: 1. Introduction: Nature, scope and significance of managerial economies, its rekitionship with other disciplines: Role of managerial economics in business decisions: Fundamental economic concepts, incremental principle, opportunity cost principle, discounting principle, equi-marginal principle, principle agent prineiple, time value of money (6 Hours) 2. Demand Analysis and Consumer Behavior: Demand functions — Generalized demand function and demand function, individwal and market demtand functions, law of demand determinants of demand: Hlasticity of demand meaning, importance in business decisions and its measurement: Cardinal and Ordinal approaches to consumer behavior: Demank forecasting its significance and techniques. (9 Hours) 3. Production and Cost Analysis: Production function nieaning and significance: short run and Jong run production analysis; Empirical estimation of production functions; short and long run cost function — their nature, shape anc! inter — rekiionship: Empirical estimation of cost funetion; Eeonomies of seale and seope (9 Hours) 4, Theory and Behaviour of Firm: Different market structures and their characteristics. Profit maximization objective, Alternative objectives of business firms, short run and long run price output decisions under perfect competition, monopolistic competition, monopoly and oligopoly: Pricing strategies — full - cost pricing, product line pricing, price skimming and penetration pricing (9 Hours) Macroeconomics: National Income, Concepts and methods of its measurement: Inflation — dentanal pull and cost push inflation, eflvets oF inflation, control of inflation; Business eyeles nature and phases of busineys eyele, policies to control business eyeles (7 Hours) Text Books: 1. Dwivedi D.N.. Managerial Economies, Vikas Publishing House Put, Lid, New Delhi Ed 2006 2. Vaish M.C., Macro Economie Tieory, Vikas Publishing House Pt, Lid, 2007 3. Dhingra LC. Managerial Economics, §. Chand Publishers, New Delhi. Fl. 2008, Reference Books: 1. Christopher R ‘Thomas & S. Charles Maurice, Managerial Economics, Vata MeGrav ~ Hil Now Delhi, 2006, 2. Petersen Craig HL. et al, Manageriat Economics, Pearson Kaducation, 2 6 * Latest editions of all the suggested books are recommended Syllabus Applicable w.e.f. Academic Session 2009-10 Page 7