ECOM531:MANAGERIAL ECONOMICS-I

Course Outcomes: Through this course students should be able to

CO1 :: recall and review the definitions and scope of managerial economics

CO2 :: apply the demand and supply conditions and assess the position of a company

CO3 :: analyze the implications of various elasticity’s of consumer demand for pricing and
location decisions
CO4 :: compare competitors strategies, including costing, pricing, product differentiation and
market environment according to the nature of products and the structure of the markets

CO5 :: evaluate real world business problems with the systematic theoretical framework

CO6 :: appraise various global business and investment climate faced by MNCs

Unit I
Introduction : Economics and managerial decision making, global economics

Firm : definition, economics goal and optimal decision making of firm, goals other than profit, firms in
global economic environment
Unit II
Demand and Supply : definition, types, individual vs market demand, market equilibrium and
adjustments, rationing function of price, allocating function of price, Elasticity of Demand
Supply Analysis : short and long run supply curve behavior and its implications, mathematics of
supply and demand
Unit III
Theory of Production : production and production function with one and two variable inputs,
concept of returns to scale, innovation process and global competitiveness
Revenue and cost : meaning of revenue and cost and their relationships, profit maximization by
total revenue and cost approach
Unit IV
Market Structure : definition of market structure, price and output determination under perfect
competition, monopoly and monopolistic competition
Oligopoly : types, meaning and sources, cartelization and price leadership under oligopoly

Unit V
Pricing Practices : pricing of multiple products, transfer pricing, price discrimination and dumping,
various types of pricing in practice
Unit VI
The Multinational Corporation in a Global Setting : opportunities for MNC in a global economy,
doing business in some key industries of India, business and investment climate, risks faced by MNC’s

Text Books:
1. MANAGERIAL ECONOMICS- PRINCIPLES AND WORLDWIDE APPLICATIONS by SALVATORE,
DOMINICK AND RASTOGI, SIDDHARTHA K, OXFORD UNIVERSITY PRESS
References:
1. MANAGERIAL ECONOMICS by DAMODARAN, SUMA, OXFORD UNIVERSITY PRESS

2. BUSINESS ENVIRONMENT by SHAIKH SALEEM, PEARSON

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