MANAGERIAL ECONOMICS

(Compulsory)
 INDEX

1. Mechanical Data
2. Object
3. Objectives
4. Teaching and Learning Methodology
5. Evaluation System
 Measurement
 Evaluation of Application
 Assessment
6. Dispute Resolution
7. Annexure I: Detailed Syllabus
8. Annexure II: Day to Day Schedule
9. Annexure III: Suggested Readings
 MECHANICAL DATA

1. Course: B.B.A. LL.B (Semester III)

2. Subject: Economics
3. Nature of the Subject: Compulsory
4. Paper: Managerial Economics
5. Paper Code: LW 2311
6. Subject Overview: Managerial Economics is the analysis of major
management decisions using the tools of economics. It is concerned
with the application of economic principles and methodologies to key
management decisions (i.e. Optimum output and Pricing policies to a
particular market structure) within organizations. Managerial
Economics, in the true sense, is the integration of economic principles
with business management practices.
7. Name of the Principal Teacher: Amar Kumar Mohanty
Credit Hours:4 Classes Per Week:6
Object of the Course:
The object of the course is to divulge the students about application of
economic analysis to a wide array of business problems.

Objectives of the Course:

To familiarize with the students the importance of economic approaches in
managerial decision making.
To understand the applications of economic theories in business decisions.

Teaching and Learning Methodology:

The course will be taught over the period of six hours a week. The course
will be taught by lectures, tutorials and practical examples and discussions.
Class activity will partially include lectures and student dialogues, class
discussions. Customary preparation of regularly assigned material is
essential as each week’s readings form part of the class activity which will
be discussed in the class. Class discussion consists of material that is
additional and different from the reading. Therefore, it is expected that
students come to class being familiar with all the assigned topics.

Evaluation System:
Measurement: Mid-term will constitute 30% of the total grade. There
would be class tests which will constitute 20% of the total grade. Best two
grades in the internal exams/viva will be considered.

Assessment: End-Semester Exam will constitute 50% of the total grade.

Dispute Resolution: As per the rules of the university.

 Annexure I

Module 1:Meaning and Importance of Managerial Economics

1.1 Introduction, Meaning and Scope of Managerial Economics
1.2 Importance of the study of Managerial Economics
1.3 Major Functions of Managerial Economics

Module 2:Demand Analysis and Demand Forecasting

2.1 Introduction, Meaning and Law of Demand
2.2 Elasticity of Demand
2.3 Meaning of Demand Forecasting
2.4 Methods or Techniques of Demand Forecasting
2.5 Demand Forecasting for a new products

Module 3: Supply and Market Equilibrium

3.1 Introduction, Meaning of Supply and Law of Supply
3.2 Elasticity of Supply, Practical Importance
3.3 Concepts of Total Utility and Marginal Utility
3.4 Market Equilibrium and Changes in Market Equilibrium

Module 4: Production and Cost Analysis

4.1 Introduction, Meaning of Production and Production Function
4.2 Types of Production Function
4.3 Laws of Production Function
4.4 Cost of Production
4.5 Types of Cost
4.6 Cost-Output Relationship
4.7 Cost Function
4.8 Revenue Analysis and Pricing Policies
4.9 Pricing Methods

Module 5: Product Pricing and Market Structures:

5.1 Pricing and Output determination under Perfect Competition
5.2 Price and Output of Firms under Imperfect Competition
5.3 Monopoly
5.4 Monopolistic Competition
5.5 Oligopoly
Module 6: Macro Economic Features:
6.1 Circular Flow of Income
6.2 National Income Accounting
6.3 Consumption Function and Investment Function
6.4 Business Cycles and Business Policy
6.5 Inflation, Deflation and Stagflation
6.6 Monetary Policy
6.7 Fiscal Policy
6.8 Budget and its objectives
6.9 FRBM Act

Module 7: The International Context

7.1 Balance of Payments
7.2 Foreign Exchange Rate and its determinants
7.3 Operation of Foreign Exchange Market
7.4 International Monetary System
7.5 FERA and FEMA
 Annexure II
Day to day schedule
N0. of Class Topic/Concept to be covered
Hours
Module 1:Meaning and Importance of Managerial Economics
1 Introduction, Meaning ,and Scope of Managerial Economics
2 Importance of the study of Managerial Economics
1 Major Functions of Managerial Economics
Module 2:Demand Analysis and Demand Forecasting
1 Introduction, Meaning and Law of Demand
3 Elasticity of Demand
1 Meaning of Demand Forecasting
3 Methods or Techniques of Demand Forecasting
2 Demand Forecasting for a new products
Module 3: Supply and Market Equilibrium
1 Introduction, Meaning of Supply and Law of Supply
2 Elasticity of Supply, Practical Importance
2 Concepts of Total Utility and Marginal Utility
3 Market Equilibrium and Changes in Market Equilibrium
Module 4: Production and Cost Analysis
1 Introduction, Meaning of Production and Production Function
1 Types of Production Function
3 Laws of Production Function
1 Cost of Production
1 Types of Cost
1 Cost-Output Relationship
1 Cost Function
3 Revenue Analysis and Pricing Policies
2 Pricing Methods
Module 5: Product Pricing and Market Structures:
3 Pricing and Output determination under Perfect Competition
1 Price and Output of Firms under Imperfect Competition
3 Monopoly
3 Monopolistic Competition
3 Oligopoly
Module 6: Macro Economic Features:
1 Circular Flow of Income
 3 National Income Accounting
2 Consumption Function and Investment Function
2 Business Cycles and Business Policy
3 Inflation, Deflation and Stagflation
1 Monetary Policy
1 Fiscal Policy
2 Budget and its objectives
1 FRBM Act
Module 7: The International Context
2 Balance of Payments
2 Foreign Exchange Rate and its determinants
2 Operation of Foreign Exchange Market
2 International Monetary System
2 FERA and FEMA
75 Class Hours

ANNEXURE III
Suggested Readings:

1. Managerial Economics - H. L. Ahuja, S. Chand Publications; 17th Edition

2. Managerial Economics-Principles and Applications – D. Salvatore, Oxford
University Press; 6th Edition
3. Managerial Economics – P. Keat and P. Young , Pearson Publications; 6th Edition
4. Managerial Economics- Theory and Applications –Dr. D. M. Mithani, Himalaya
Publishing House; 5th Edition
5. Managerial Economics-R. L.Varshney and K.L.Maheswari ,S.Chand &Sons; 19th
Edition
6. Managerial Economics-S.Damodaran, Oxford University Press; 2nd Edition
7. Micro Economics – Dr. H. L. Ahuja , S. Chand Publication; 17th Edition
8. Macro Economics – Dr. H. L. Ahuja, S. Chand Publication; 18th Edition
9. Macro Economics – R. Dornbush and S. Fisher, TMH Publication; 9th Edition
10. Macro Economics – D.N.Dwivedi, Pearson Publications; 2nd Edition
11. Managerial Economics – P. L. Mehta, S. Chand Publication; 7th Edition
12. Managerial Economics – G. S. Gupta, TMH Publication, 2nd Edition
13. Monetary Economics: Institutions, Theory and Policy ,Banking ,S.B.Gupta
S.Chand & Company ; 15th Edition