Syllabus 1st sem BBA LLB Calicut University Managerial economics

C.M.3 MANAGERIAL ECONOMICS

To enable the students to understand the micro and macroeconomic concepts relevant for business decisions
To help the students to understand the application of economic principles in business management

Introduction - Definition of Managerial economics - objectives - characteristics - uses - decision making and forward planning - basic economic tools in management economics.

The concept of demand and elasticity of demand - Demand curve: Individual demand curve,Market demand curve, Movement along Vs shifts in the Demand curve,
Elasticity of Demand: Price, Income and cross - Demand estimation and demand forecasting -concept of revenue: Average Revenue and Total Revenue – Marginal Revenue and Incremental Revenue.

Production: Fixed and Variable inputs, Production function, Total, Average and Marginal Product, Law of variable proportions, Linear homogeneous production function - production isoquants, marginal rate of technical substitution – optimal combination of resources - return to scale - cost of production - social and private cost of production - difference between economic and accounting cost - long run and short run cost of production - Economics and diseconomies of scale.

Price and output decisions under different market structures: Price and output decisions under perfect competition, monopoly and monopolistic competition - pricing under oligopoly -kinked demand curve - price leadership - pricing, under collusion.

A. Pricing policies and practices: factors governing prices - objectives of pricing policy - Role of cost in pricing - demand factor in pricing - consumer psychology and pricing - pricing methods: cost-plus or full-cost pricing - Target pricing – Marginal cost pricing - going rate pricing - follow up pricing - Barometric pricing - customary prices - Pricing of new products: Penetrating pricing - Price skimming.
B. Macro Economics and Business decisions: Phases of Business cycle - Evil effects of cyclical fluctuations on business firms - Minimising effects of Business cycles. Economic Forecasting for business: Economic and Business forecasting - uses of economic forecasts - Methods of economic forecasting - selecting a forecast - evaluating forecasts.