MANAGERIAL ECONOMICS

UNIT-I: INTRODUCTION Introduction to Managerial Economics : Definition, Nature, Scope, Importance and General Foundation of Managerial Economics, Circular flow of activities, Introduction to National Income and Methods of Estimating National Income. Nature of firm; Objectives of firm; Theory of firm. Forms of organizations-Sole Proprietorship; Partnership; Joint Stock Company; Cooperatives; Public Enterprises. Relevance of demand analysis in Business Decision-making: Law of Demand; Elasticity of Demand; Determinants of Demand; Individual, firm and Market demand; Demand Curve and its nature; Demand Forecasting Techniques.

UNIT-II: MARKETS AND PRICING Product Markets and Recourse Markets. Market Structure: Differently Competitive Markets; Pricing under different Market structures. Methods of Pricing new and existing products; Pricing strategies. Cost-Oriented and Market-Oriented Pricing. Cost concepts: Types of cost; Relationship between Average and Marginal Cost in Short run and long run; Economies and Accountant View on Cost; Using Marginal costing in business decision-making. Production functions in short and long run.
13 Wages and wage differentials.

UNIT-III: ECONOMIC DECISION-MAKING Concept of Required Rate of Return and Internal Rate of Return; Annual-cost and Annual-worth Comparisons; Present-worth analysis; Economic Life; Replacement Economy; Analysis of risk and uncertainty in capital expenditure decisions.Budgetary Control: Preparation of Cash Budgets, Purchase Budgets, Production Budgets and Flexible Budgets; Concept of Zero-Based Budgeting.

UNIT-IV MACRO ECONOMIC ISSUES (I) The Great Depression of 1920s and lessons learnt. Global recession of 2008 and its impact on Indian business. The Euro crisis. WTO and its impact on Indian Agriculture and Textiles industry. Concepts of SEZs, EPZs, FTZs and EPCs.

UNIT-V: MACRO ECONOMIC ISSUES (II) Inter- Sectoral Linkages, Macro Aggregates and Policy Interrelationships- Fiscal and Monetary Policies. Business and Government. Economic Indicators, Technology, Employment and Poverty-Issues and Challenges. Industrial Finance – Money Market and Capital market.