MBA Semester –2 Paper 2: Managerial Economics SYLLABUS

Semester –2 Paper 2: Managerial Economics

Semester –II

Managerial Economics

SECTION A

Unit I: Nature and fundamental concepts and basis techniques of managerial economics - Analysis of

Demand, Significance, estimation of demand; Elasticity of Demand, Techniques and Importance of

Demand forecasting; Basic Mathematical Problems related to demand estimation and elasticity of

demand.

Unit II: Production & Cost Analysis - Production & Production Function: Concept, Forms of production

function, Law of variable Proportions, Returns to scale. Cost concept, Short term and long term cost

output relationship, Cost curves, Economies of scale.

Unit III: Objectives & Equilibrium of the Firm - Market Structures- Perfect Competition, Monopoly,

Monopolistic Competition & Oligopoly - kinked demand curve and cartels, Mathematical Problems on

profit maximization and Price & Output determination under various market structures.

Unit IV: Pricing in practice - Cost plus pricing, incremental pricing, transfer pricing and price

discrimination.

Unit V: Market failure - Concept, Symptoms and Reasons, Concept of Asymmetric Information; Market

intervention by Government-Rationale for Intervention.

SECTION B

Unit VI: National Income Accounting - Concept & measurement; Determination of Income &

Employment; Concept of multiplier; Inflation and Deflation, types, causes and control of inflation.

Unit VII: Macro economic policy - Monetary and fiscal- objectives and Instruments; Effectiveness of

Monetary & Fiscal Policy with respect to Indian Economy.

Unit VIII: Business cycles - Concept, Causes & Impact, Measures to control Business cycles.

Unit IX: External Sector Dynamics - Justification for International Trade, Foreign Capital flows & Balance

of Payment-Methods top correct Disequilibria; Exchange Rate: Fixed & Flexible; Convertibility of Rupee

(Current & Capital Account).

Unit X: Economic Environment of Business - Factors determining Economic environment of Business,

Present scenario of Indian Economy.

Suggested Readings:

1.

Managerial Economics, P. L. Mehta, Sultan Chand & Sons, New Delhi

2.

Managerial Economics, Dwidevi, TMH

3.

Managerial economics in a Global economy, Dominick Salvatore, 2006, Thomson learning Press

4.

Managerial Economics, Suma Damodran, 2006, Oxford University Press, New Delhi

5.

Indian Economy, Mishra & Puri, 2007, Himalaya Publishing Hous