Course

Unit 1

Introduction to Economics: The problems of wants, scarcity and choice – Difference between microeconomics and macroeconomics. Importance and limitations of Microeconomics and Macroeconomics. Basic problems of Economics: What to Produce, How to Produce, For Whom to Produce, Level of Resource Use and Flexibility – Production possibilities curve. Economic systems – Capitalism – Command Economy – Mixed Economy – Emerging Economy, Economics and business.

Unit 2

Demand and Supply Analysis: Concept of demand – Demand schedule and demand curve –

Change in demand and change in quantity demanded Law of demand: Basis for its operation and factors influencing demand. Elasticity of demand: Types and measurement. Supply: Concept, Supply schedule and supply curve – Change in supply and change in quantity supplied –

Law of supply, Factors influencing supply, Equilibrium.

Unit 3

Production, Cost and Revenue Analysis: Meaning of production – Production function – The Law of Variable Proportions or the Law of Diminishing Marginal Returns – Returns to scale – Cost and production: Various concepts of cost – Economies of scale. Revenue function: Total, Average and Marginal revenue – Profit maximization: TR TC and MR-MC approaches.

Unit 4

Theory of Markets: Meaning and types of markets – Main features of Competitive, Monopoly, Duopoly Monopolistic and Oligopoly markets. Price discrimination: Meaning and Types.

Unit 5

Macroeconomics: National income analysis: Meaning, Concepts and Measurement, Problems in measurement Concept of full employment Types of unemployment. Business cycles: M eaning and Phases.Inflation: Meaning, Types and control of inflation: Monetary and Fiscal policies.

Course Objective:

The main focus is on making the various theoretical concepts clear and intelligible to a student. The objective is to help the student to understand the various economic parameters effectively and efficiently.

Course Outcomes:

The student will be able:

• CO1: To understand the importance of economic concepts for managing the firms
• CO2: To understand various theories of economics that can be applied in the internal and external decisions to be made by managers
• CO3: To analyze the demand and supply conditions and assess the position of a company
• CO4: To design competition strategies, including costing, pricing, product differentiation, and
• market environment according to the nature of products and the structures of the
• CO5: To analyze real-world business problems with a systematic economic framework

Text Books:

• P Balasubramanian & Dr. Somasekharan T M – Economics for Decision Making – Kalyani Publishers.
• Varshney & Maheswari – Managerial Economics – Sultan Chand
• Mehta, L. – Managerial Economics – Sultan Chand & Sons.
• Dwivedi, D.N. – Managerial Economics – Vikas Publishing House

References:

• Mehta L. – Managerial Economics – Sultan Chand & Sons
• Koutsoyiannis, – Modern Micro Economics, Macmillan Press Ltd.
• Salvator, Dominick, Managerial Economics, McGraw-Hill Book Company
• Paul A Samuelson & Nordhans, Economics, Sultan Chand & Sons