Managerial Economics:Meaning, Nature, Scope, & Significance, Uses of Managerial Economics, Role and Responsibilities of Managerial Economist, Relationship of Managerial Economics with Statistics, Accounting and Operations Research, The Basic process of decision making.
Opportunity Costs, Incremental Principle, Time perspective, Discounting and Equi-Marginal principles, Theory of the Firm: Firm and Industry, Forms of Ownership, Objectives of the firm, alternate objectives of firm. Managerial theories: Baumol’s Model, Marris’s Hypothesis, Williamson’s Model. Behavioral theories: Simon’s Satisficing Model, Cyert and March Model, Agency theory.
Case Study:Dabur India Limited: Growing Big and Global.
Source:Managerial Economics – Geethika, Ghosh & Choudhury, 2/e, McGraw Hill. 2011. Pp 64-65.
Law of Demand, Exceptions to the Law of Demand, Elasticity of Demand –Classification of Price, Income & Cross elasticity, Advertising and promotional elasticity of demand. Uses of elasticity of demand for Managerial decision making, Measurement of elasticity of demand. Law of supply, Elasticity of supply, Demand forecasting: Meaning & Significance, Methods of demand forecasting. (No problems)
Concepts, Types of cost, Cost curves, Cost – Output Relationship in the short run and in the long run, LAC curve. Concepts, production function with one variable input - Law of Variable Proportions. Production function with 2 variable inputs and Laws of returns to scale, Indifference Curves, ISOQuants & ISO-Cost line, Least cost combination factor, Economies of scale, Diseconomies of scale. Technological progress and production function
Case Study:Automobile Industry in India: New Production paradigm.
Source:Managerial Economics – Geethika, Ghosh&Choudhury, 2/e, McGraw Hill. 2011. Pp 234-236
Perfect Competition, Features, Determination of price under perfect competition, Monopoly: Features, Pricing under monopoly, Price Discrimination. Monopolistic Competition: Features, Pricing Under monopolistic competition, Product differentiation. Oligopoly: Features, Kinked demand Curve, Cartels, Price leadership.
Descriptive Pricing Approaches: Full cost pricing, Product line pricing,
Case Study: Product life cycle pricing, Pricing Strategies: Price Skimming, Penetration Pricing, Loss leader pricing, Peak Load pricing. David Fights Goliath: The Nirma Story.
Source:Managerial Economics – Geethika, Ghosh & Choudhury, 2/e, McGraw Hill. 2011. Pp 349-351.
Profits:Determinants of Short-Term & Long Term Profits, Measurement of Profit. Break Even Analysis – Meaning, Assumptions, Determination of BEA, Limitations, Uses of BEA in Managerial decisions.
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