RAYAT-BAHRA UNIVERSITY

University School of Management Studies (USMS)

Department of Business Administration
BBA School Core I Year – I Sem
UGC CBCS: Core Subject
Theory Course Offered by: School: USMS Dept: Business Administration
1 Course Code EOG001
2 Course Title Economics in Business Decision Making(Micro)
3 Credits 3-1-0 (4)
Contact Hours (L-
4 3-1-0 (4)
T-P)
1. Describe and analyse the “Economic way of thinking”
2. This course will cover the area of economics commonly defined as Microeconomics which is
concerned with the individual parts of the economy such as individual businesses or
industries, individual consumers, and individual products.
5 Course Objectives 3. The course aims to provide a thorough introduction to economic theory. Starting from the
basic concepts of microeconomics, utility functions, production functions, demand and
supply, effect of market forces.
4. The goal is to study whether the economy uses our limited resources to obtain the maximum
satisfaction possible for society.
On successful completion of this course, students will be able to
1. Define the various decision areas of Business Economics.
2. Identify the conditions that give rise to the economic problem of scarcity.
3. Understand the basic theories behind Consumer Behaviour (demand) and Producer Behaviour
(supply) constrained by the scarcity of valuable resources.
4. Describe Opportunity Cost.
5. Draw production possibilities from a set of hypothetical data.
6. Analyze the significance of different locations on, above or below a Production Possibility Curve.
7. Analyze factors and situations that cause supply and demand curves to shift.
8. List and explain the determinants of demand and supply.
9. Differentiate between Normal and Inferior goods.
10. Comprehend how a consumer should spend his limited income to be in equilibrium.
6 Course Outcomes 11. Estimate the behaviour of consumer towards different combination of goods to which the
consumer is indifferent.
12. Identify the most rational stage for a producer in short run production function.
13. Execute simple analyses of markets for production inputs, including labour and capital.
14. Distinguish between Internal and External economies and Diseconomies of scale.
15. Recognize the relationship between cost and output.
16. Comprehend working knowledge of the theory of the firm and its implications for prices and
production under both Perfect and Imperfect competition, including Monopoly.
17. Comprehend the nature of competition in markets.
18. Recognize supply and demand as a tool for analyzing the determination of prices and quantities
bought and sold on markets.
19. Distinguish between different types of market structures.
7 Outline Syllabus: 40 Lecture Hours
7.01 EOG001.A Unit A Introduction to Economics
Scope of Economics. Positive and Normative Economics. Micro economics: meaning,
7.02 EOG001.A1 Unit A Topic 1 nature, scope and limitation. Role of business economics in decision making: Types of
Business decisions.

7.03 EOG001.A2 Unit A Topic 2 Scarcity and choice, Central problems of an economy, Opportunity Cost , Production
possibility curve
7.04 EOG001.B Unit B Demand and Supply

Meaning of demand, determinants and its types, Law of demand. Degrees of

7.05 EOG001.B1 Unit B Topic 1 elasticity of demand, Price elasticity of demand and its measurement. Factors
determining elasticity of demand.
7.06 EOG001.B2 Unit B Topic 2 law of supply : Concept, factors affecting supply.
7.07 EOG001.C Unit C Consumer Behaviour
Utility approach: Brief outline of law of diminishing marginal utility and law of equi-
7.08 EOG001.C1 Unit C Topic 1
marginal utility.
7.09 EOG001.C2 Unit C Topic 2 Indifference Curve Approach :Consumer Equilibrium, Income, Price and Substitution
 effect
7.10 EOG001.D Unit D Theory of Production and Analysis of Cost

7.11 EOG001.D1 Unit D Topic 1 Law of Variable Proportions. Law of Returns to a Scale. Economies and Diseconomies
of Scale.
Concept of revenue; Theory of cost: types of cost, Traditional theory and Modern
7.12 EOG001.D2 Unit D Topic 2
theory.
7.13 EOG001.E Unit E Determination of Price and Output
Perfect Competition -Equilibrium of Firm and Industry under Perfect Competition,
7.14 EOG001E1 Unit E Topic 1
Monopoly -Price determination under Monopoly, Price discrimination.
Monopolistic Competition -Price and Output determination under Monopolistic
7.15 EOG001.E2 Unit E Topic 2
Competition and Oligopoly.
8 References
8.1 Text book
1. Microeconomics: Theory and Applications, D.N. Dwivedi, Pearson Education, New Delhi.

1. Managerial Economics, D. N. Dwivedi, Vikas Publishing House.

2. Managerial Economics in a Global Economy, D. Salvatore, Oxford University Press.
3. Managerial Eco. L. Peterson, And Jain, Pearson Education.
4. Managerial Economics analysis of managerial decision making, H.L. Ahuja, Chand & Company
Supplementary Ltd. New Delhi.
8.2
Reference(s) 5. Microeconomics, B.D. Bernheim and D.W. Michael, Tata McGraw-Hill.
6. Microeconomics, Krugman, Paul and Robin Wells, Worth Publishers USA.
7. Principles of Microeconomics, Mankiw N. Gregory, Cengage Learning.
8. Applied Microeconomics, Mansfied, Edwin, USA, W.W. Norton and Co.
9. Principles of economics, D.N. Dwivedi, Vikas Publishing House Pvt Ltd.
10 Business Economics, D.D.Chaturvedi, S.L. Gupta, Pal Sumitra, Galgotia Publishing Company.
New Delhi.
Pedagogical
9
Methods White/Black Board/ PPT / Group Discussion

10. Mapping of Outcomes vs. Topics

Course Name: Economics in Business Decision Making; Course Code: EOG001
Outcome No. → 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Syllabus Topic↓
EOG001.A x x x x x x
EOG001.A1 X
EOG001.A2 X X X X X
EOG001.B X x x
EOG001.B1 x X X
EOG001.B2 X
EOG001.C x x
EOG001.C1 X
EOG001.C2 X
EOG001.D x x x x
EOG001.D1 X X X
EOG001.D2 X
EOG001.E X x x X
EOG001.E1 X X X X
EOG001.E2 X X