COE1301AA BUSINESS ECONOMICS (THEORY)

COURSE OUTCOMES
5 hrs./wk.
On successful completion of the course, the student will be
able to
CO1: describe the basic economic concepts used in business
CO2: analyse the behaviour of consumer
CO3: explain the role of cost and production functions
CO4: apply the suitable pricing methods for different market
forms
CO5: describe the role of macro economics in business
COURSE CONTENT:
UNIT I: INTRODUCTION TO BUSINESS ECONOMICS
7 hrs.
Meaning and Definition – Scope and nature of Business
Economics – relation with other disciplines –economic tools
applied to business – role and responsibilities of a business
economist.
UNIT II: THEORY OF CONSUMER BEHAVIOUR
18 hrs. Theory
of consumer’s behaviour – theory of utility – total and
marginal – law of diminishing marginal utility – Marshallian’s
approach – Indifference curve approach – meaning and
properties of indifference curve – budget line – consumer’s
equlilbrium. Meaning and determinants of demand, Law of
Demand and Elasticity of demand – price, income and cross
elasticity of demand.
UNIT III: THEORY OF PRODUCERS BEHAVIOUR
18 hrs. Meaning
of production – factors of production – production function –
The law of variable proportion – law of returns to scale –
economies and diseconomies of scale – cost concepts – short
run and long run average cost curves – relationship between
average and marginal cost curves – Supply - meaning and
Law of supply – determinants of supply.
UNIT IV: THEORY OF MARKET BEHAVIOUR
14 hrs. Market
meaning – features – classifications - market equilibrium –
changes in demand and supply – equilibrium price
determination – features, price and output determination under
perfect competition, monopoly, monopolistic competition and
oligopoly.
UNIT V: MACRO ECONOMIC BEHAVIOUR AND
BUSINESS 18 hrs.
National Income – basic concepts – methods of measuring
National Income – difficulties in measuring National Income
– Business cycle – meaning – features – phases – causes –
inflation – meaning – types – causes – Macroeconomic
policies – monetary and fiscal policies EXIM Policy.
TEXT BOOK(S): Varshney, R.L. and Maheswari K.L.
Managerial Economics. New Delhi: Sultan Chand & Sons,
2016. Print.
REFERENCE BOOK(S): Dharmaraj, E. Business Economics.
Chennai: Scitech publication pvt Ltd, 2015. Print. Jhingan,
M.L and Stephen J.K. Managerial Economics. Delhi: Vrindha
publications, 2016. Print. Metha, P.L, Managerial Economics.
New Delhi: Sultan Chand & Sons, 2015. Print Sankaran S.
Managerial Economics. Chennai: Margham Publications,
2015. Print. Sankar VG. Business Economics. Chennai:
Macmillan India Ltd, 2016. Print.