Managerial Economics- Nature, Scope, & significance. Role of ManagerialEconomist in Decision making -Decision Making Process in Managerial Economics
Opportunity Costs, Incremental Principle, Timeperspective, Discounting and Equi-Marginal principles.
Law Of Demand, Exceptions to the Law of Demand, Elasticity of demand – Price, Income &Cross elasticity, Uses of elasticity of demand for Managerial decision making, Measurement of elasticity ofdemand. Advertising and promotional elasticity of demand.-Demand forecasting: Meaning & Significance.
Objectives of the firm, alternate objectives of firm, firm & Industry. Marginalism – Importance indecision making.Theories of firm-Managerial theories: Baumol’s Model, Marris’s Theory, Williamson’s theory.Behavioural theories: Satisfying Behaviour, Simple model of Behaviourism.
Concepts, production function: Single Variable – Law of Variable Proportions & Twovariable Function – ISO-Quants & ISO-Costs & Equilibrium (Least cost combination). Total, Average, &Marginal Product. Returns to scale. Technological progress & Production function.
Short run and long run cost curves, combination, expansion path. Economies anddiseconomies of scale. Law of supply, Elasticity of supply.
Market structure: Perfect Competition, Features, Determination of price under perfect competitionMonopoly: Feature, Pricing under monopoly, Price discrimination.Oligopoly: Features, Kinked demand Curve, Cartels, Price leadership.Monopolistic Competition: Features, Pricing Under monopolistic competition, Product differentiation.Descriptive Pricing Approaches: Full cost Pricing, Product Line Pricing,Pricing Strategies: Price Skimming, Penetration Pricing, Loss leader pricing.
Determinants of Short-term & Long-term profits. Classification – Measurement of Profit.Break EvenAnalysis – Meaning, Assumptions, determination of BEA, Limitations – Uses of BEA in Managerial decisions.