Managerial Economics

Unit I (4 Sessions)

Overview: The economics background to management; Nature and scope of managerial economics and its relationship with
other disciplines; Significance in decision-making and five fundamental concepts

Unit II (8 Sessions)

Demand analysis: Demand theory; Objectives of demand analysis and determinants of demand; Elasticity of demand and its
measurement methods; Importance in decision-making; Demand forecasting methods


Unit III (10 Sessions)

Production and cost analysis: Production concepts and analysis; Production function; Characteristic of various factors of
production; Laws of production; Cost concepts and analysis; Empirical estimates of production and costs; Production function
and its managerial use, short-run and Long-run Average costs curves and its analysis.


Unit IV (10 Sessions)

Pricing decisions: Pricing under different market structure: perfect and imperfect (monopoly, monopolistic and oligopoly
markets). Pricing strategies; Collusive and non-collusive oligopoly; Baumol and Marris’s models


Unit V (8 Sessions)

Macroeconomics: National Income-concepts and various methods of its measurement. Inflation: theories. Introduction to
business cycles



Managerial Economics also called as Business Economics is that branch of economics that uses the Microeconomic Analysis to solve the business problems. It uses the economic theory & practice to provide the solutions to the business problems.

It is most commonly applied to solve the following business prblems:

Risk analysis
Production analysis
Pricing analysis
Capital budgeting