Managerial Economics Syllabus


Course Code: MB0041

Course Title: Managerial Economics  (4 Credits)




Course Contents


Unit 1-Meaning and Importance of Managerial Economics:  Introduction, Meaning, Scope of Managerial Economics , Importance of the study of Managerial Economics, Two Major Functions of a Managerial Economist


Unit 2-Demand Analysis: Introduction, Meaning and Law of Demand, Elasticity of Demand


Unit 3- Demand Forecasting: Introduction, Meaning and Forecasting, Level of Demand Forecasting, Criteria for Good Demand Forecasting, Methods or Techniques of Demand Forecasting, Survey Methods, Statistical Methods, Demand Forecasting for a New Products


Unit 4- Supply & Market Equilibrium: Introduction, Meaning of Supply and Law of Supply, Exceptions to the Law of Supply, Changes or Shifts in Supply. Elasticity of supply, Factors Determining Elasticity of Supply, Practical Importance, Market Equilibrium and Changes in Market Equilibrium


Unit 5- Production Analysis: Introduction, Meaning of Production and Production Function, Cost of Production


Unit 6- Cost Analysis- Introduction, Types of Costs, Cost-Output Relationship: Cost Function, Cost-Output Relationships in the Short Run, and Cost-Output Relationships in the Long Run.


Unit 7- Objectives of Firm- Introduction, Profit Maximization Model, Economist Theory of the Firm, Cyert and March’s Behavior Theory, Marris’ Growth Maximisation Model, Baumol’s Static and Dynamic Models, Williamson’s Managerial Discretionary Theory


Unit 8- Revenue Analysis and Pricing Policies- Introduction, Revenue: Meaning and Types, Relationship between Revenues and Price Elasticity of Demand, Pricing Policies, Objectives of Pricing Policies, Pricing Methods


Unit 9- Price Determination under Perfect Competition- Introduction, Market and Market Structure, Perfect Competition, Price-Output Determination under Perfect Competition, Short-run Industry Equilibrium under Perfect Competition, Short-run Firm Equilibrium under Perfect Competition, Long-run Industry Equilibrium under Perfect Competition, Long-run Firm Equilibrium under Perfect Competition


Unit 10- Pricing Under Imperfect Competition- Introduction, Monopoly, Price Discrimination under Monopoly, Bilateral Monopoly, Monopolistic Competition, Oligopoly, Collusive Oligopoly and Price Leadership, Duopoly, Industry Analysis


Unit 11- Macro Economics and some of its measures- Introduction,  Basic Concepts,   Macroeconomic Ratios,  Index Numbers,  National Income Deflators


Unit 12- Consumption Function and Investment Function- Introduction, Consumption Function, Investment Function, Marginal efficiency of capital and business expectations, Multiplier, Accelerator


Unit 13: Stabilization Policies-Introduction, Economic Stability, Instruments of economic Stability, Monetary Policy, Fiscal Policy, Physical Policy or Direct Controls.


Unit 14- Business Cycle- Introduction, Meaning and Features, Theories of Business Cycles, Measures to Control Business Cycles, Business Cycles and Business Decisions


Unit 15-Inflation and Deflation: Inflation - Meaning and Kinds, Measures to Control Inflation, Deflation