BFN204 - MANAGERIAL ECONOMICS

L T P C
5 1 0 6
Theory + Tutorial: 90 hours

Paper objectives:
To enable the students to use micro economic principles and quantitative tools to making sound
managerial decisions
To present business topics using graphs, equations and numerical insight

Learning Outcome:
Develop the conceptual foundations and analytical methods used in micro economics
Familiarize the students with the basic consumer behaviour, behaviour of firms, and market
equilibrium.

Pedagogy:
Combination of lectures, assignments and group discussion

Unit I-Introduction to Managerial Economics:

Meaning, nature and scope of managerial economics- Basic Economics tools in Managerial
Economics -Role and Responsibility of managerial Economist- Importance of Managerial
Economics.

Unit II-Theory of Consumption:

Utility-Meaning & feature, Cardinal approach- law of diminishing Marginal utility-Law of demand-
Determinants of demand- movement vs shift in demand curve, Elasticity of demand. Ordinal utility-
Indifference curve- Properties of Indifference curve – Budget line, consumers equilibrium ,Income
and substitution effect.

Unit III-Theory of Production and Cost: Meaning of production-Production function;supply -

meaning and law of supply – Law of variable proportions; Law of returns, Gross profit and net
profit- Profit maximisationvs sales maximisation,Baumols sales maximisation model, capital
Budgeting- Importance.

Unit IV-Market structures :

Price and output determination under different forms of market- Perfect competition, Monopoly-
Monopolistic Competition – Price discrimination – Monopsony, Oligopoly,Oligopsony

Unit V-Demand Forecasting:

Factors involved – Objectives of short run and Long run Demand Forecasting-Determinents of
demand – forecasting of demand for new products- Overseas demandanalysis -criteria of good
forecasting method- techniques of demand forecasting

Suggested Reading:
1. Peterson, Lewis and Jain, Managerial Economics : Pearson Publication, NewDelhi ; 2001
2. D M Mithan, Managerial Economics: Theory and Practice, Himalaya Publication, New
Delhi ; 2005

30
3. K
KDewett
, Modern
Economi
c
Theory,
Chand
Publicati
on, New
Delhi ;
1999
4. ACCA Study Material, Latest Edition, London: Kaplan Publishers Ltd; 2018
5. ACCA Study Material, Latest Edition, London: BPP ; 2018
Semester III:

C5 Human Nutrition 4 0 2 6
C6 Community Nutrition - I 5 1 0 6
C7 Food Commodities 4 0 2 6
Semester SEC -1 Sports Nutrition 2 0 0 2
III Food Service Management

GE 3 Business Mathematics 5 1 0 6
Total 20 2 4 26