KMBN102 MANAGERIAL ECONOMICS UNIT-1 Basic Concepts and principles: Definition, Nature and Scope of Economic Economics-Micro Economics and Macro Economics Managerial Economics and its relevance in business decisions. Fundamental Principles of Managerial Economics - Incremental Principle, Marginal Principle Opportunity Cost Principle, Discounting Principle, Concept of Time Perspective Equi-Marginal Principle, Utility Analysis, Cardinal Utility and Ordinal Utility. UNIT-2 Demand and Supply Analysis: Theory of Demand, Types of Demand. Determinants of demand, Demand Function, Demand Schedule Demand curve, Law of Demand, Exceptions to the law of Demand, Shifts in demand curve Elasticity of Demand and its measurement. Price Elasticity, Income Elasticity, Arc Elasticity Cross Elasticity and Advertising Elasticity. Uses of Elasticity of Demand for managerial decision making Demand forecasting meaning, significance and methods.( numerical Exercises) Supply Analysis; Law of Supply, Supply Elasticity; Analysis and its uses for managerial decision making. Price of a Product under demand and supply forces. UNIT-3 Production and cost Analysis: Production concepts & analysis Production function, Types of production function, Laws of production Law of diminishing returns, Law of returns to scale, Cost concept and analysis Cost, Types of costs, Cost output relationship in the short-run. Cost output relationship in the Long-run. Estimation of revenue. Average Revenue, Marginal Revenue. UNIT-4 Market structures: Perfect and Imperfect Market Structures, Perfect Competition Competition, features, determination of price under perfect competition. Monopoly: Feature, pricing under monopoly, Price Discrimination. Monopolistic: Features, pricing under monopolistic competition, product differentiation. Oligopoly: Features, kinked demand curve, cartels, price leadership. UNIT-5 National Income; Concepts and various methods of its measurement Circular flows in 2 sector, 3 sector, 4 sector economies, Inflation, types and causes, Business Cycle & its phases.
