Nature and Scope of Managerial Economics
Fundamental Economics Concepts: Opportunity Cost, Discounting Principle, Time Perspective, Incremental
Reasoning, Equi-marginal Concept, Marginal Concept Theory of Firm – Profit and Wealth Maximization,
Econometrics – Use of Econometric Models in Decision Making.
Basis for Demand, Concept of Utility – Cardinal and Ordinal Approaches of Utility, Law of Marginal Utility,
Maximization of Consumer Utility, Consumer – Surplus Demand Analysis: Determinants of Demand, Law of
Demand – Price, Income and Cross Elasticity of Demand, Managerial Applications of Elasticity of Demand –
Demand Forecasting and Measurement Methods.
Production and Cost Analysis
Production Function: Cobb Douglas and CES Production Functions, Laws of Diminishing Marginal Returns to
Scale, Returns to Scale, Optimal Combination of Input Factors, Optimization of Two Inputs and Single Output
through Graphic Method, Expansion Path and Ridge Lines, Economies and Diseconomies of Scale, Economies
of Scope, Learning Curve, Cost Analysis: Economic and Accounting Costs, Role of Time in Cost Analysis,
Cost- volume Profit Analysis.
Market Structure and Modern Pricing Practices
Price Determination Under Perfect Competition, Monopoly, Oligopoly and Monopolistic Competition,
Game theory Basics, Dominant Strategy, Nash Equilibrium, Prisoners Dilemma, Pricing and Non-pricing
Strategies,Sophisticated Market Pricing: Price Discrimination-using Coupons and Rebates for Price
Discrimination, Peak Load Pricing, Transfer Pricing: A Perfectly Competitive Market for Upstream Product, The
Global use of Transfer Pricing.
Macro Economics and Business
Nature, Concept and Measurement of National Income, Classical and Keynesian Approaches to Income,
Employment and Investment, Inflation: Types, Causes and Measurement of Inflation, Phillips Curve, Stagflation,
Trade Cycles Causes and Policies to Counter Trade Cycles.