BBA: Semester- I

Business Economics

Objectives:
To acquaint the students with the basic concepts of microeconomics dealing with consumer
behaviour and behaviour of firms under different market structures; thus enabling them to obtain
managerial problem solving skills and execute managerial functions through application of
economic theories and models.

Unit-I (Sessions : 8)
Meaning and scope of Managerial Economics - Relationship between managerial economics
and other subjects - Role and Responsibilities of Managerial Economists.

Unit-II (Sessions : 8)
Demand Analysis and Forecasting: Types of demand - Determinants of demand - Demand
function - Elasticity’s of demand - Its importance - Demand forecasting Techniques.

Unit-III (Sessions : 8)
Production Analysis : Production function - Law of diminishing return - Isoquants - Marginal
rate of Substitutions - Elasticity of substitution - Laws of returns to scale - Economies and
diseconomies of scale

Unit-IV (Sessions : 8)
Cost Analysis: Cost concepts - Short run cost - output relations - Long run cost - output relations
- Cost control and cost reduction - Break - Even Analysis.

Unit-V (Sessions : 8)
Market Structure and Pricing: Features, Price and output decisions under perfect competition,
Monopoly, Monopolistic Competition, Oligopoly - Pricing methods.

References:
1. AHUJA .H.L. –Business Economics: Recommended by UGC in its Model Curriculum,
S.Chand& Co, New Delhi. S. Chand & Company Ltd, 2013, Revised edition.
2. Ferguson,Charles E.(1972), Microeconomic theory"Cambridge University press.
3. R.R.Barthwal, Microeconomic Analysis (3rded), Wiley Eastern Ltd.
4. W.J.Baumol, Economic Theory and Operational Analysis, Prentice Hall.
5. A.Koutsyanni's, Modern Microeconomics, Macmillan.
6. M.L.Trivedi, Managerial Economics – Theory and Applications, Tata McGraw Hill

Suggested Readings:
1. Pindyck, R.S., D. L. Rubinfeld and Mehta, P. L. Microeconomics, Pearson Education.
2. Gould, J.P., and Lazear, E.P. Microeconomic Theory, All India Traveller Bookseller, New
Delhi.
3. Salvatore, D. Schaum’s. Outline of Theory and Problems of Microeconomic Theory,
McGraw-Hill International Edition.
4. Pindyck, Rubinfeld and Mehta. (2009). Micro Economics. (7th ed ). Pearson.

Note: Latest edition of text books may be used.