Page 4 - DECO405_MANAGERIAL_ECONOMICS

SYLLABUS
Managerial Economics

Objectives: The main objective of this course is to understand the basic economic principles of production and exchange -
essential tools in making business decisions in today's global economy.

S. No. Description
1. Introduction to Managerial Economics: Scope of Economics, Economic Principles relevant to Managerial
Decisions, Relationship of Managerial Economics with Decision Sciences.
2. Market Demand and Supply: Determinants of Demand, Basis for Demand; Direct and Derived demand; Law
of Demand, Law of Supply, Market Equilibrium. Consumer Behaviour.
3. Utility analysis: Cardinal and Ordinal utility, Equi-marginal utility. Indifference curve and its properties.
Consumer Equilibrium with Cardinal and Ordinal approach, Consumer surplus, Price, Income and Cross
Elasticities of Demand.
4. Production Theory: Production Functions with one variable and two variable inputs, Producers’
Equilibrium, Expansion Path, Total, Marginal and Average Revenue curve; Law of Diminishing Returns to
Factor; Returns to Scale.
5. Cost Analysis: Types of Costs; Short Run and Long Run Cost Curves; Economics of Scope and Economies of
Scale. Revenue Analysis: Types of Revenue Curves and their applications.
6. Market Structure: Perfect Competition; Assumptions, Price and Output determination in Perfect
Competition in Short and Long run.
7. Imperfect Competition: Monopoly–Features; Price and Output decisions; Price Discrimination.
8. Monopolistic Competition: Features; Price and Output decisions; Short and Long run Equilibrium.
9. Oligopoly: Features; Cartels and Collusions (introductory); Kinked Demand curve.
10. National income: Concepts, Methods of measuring National Income, Problems in measuring National
Income, Circular Flow of Income in 2 Sector and 4 Sector model.