UNIQUE SERIES AKTU Syllabus
BMB102BMBA102BMBAB102BMLS102

Managerial Economics

L-T-P4-0-0 Credits3 Session2024-25 TypeTheory
Appears in 5 semesters · 5 branches

MBA General · Sem 1 (Core, code BMB102) · MBA Agribusiness Management · Sem 1 (Core, code BMBAB102) · MBA Business Analytics · Sem 1 (Core, code BMBA102) · MBA Health Care & Hospital Management · Sem 1 (Core, code BMB102) · MBA Logistics & Supply Chain Management · Sem 1 (Core, code BMLS102)

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Syllabus

5 units · 40 lecture hours
Unit1

Unit 1

6 hrs

Basic Concepts and principles: Definition, Nature and Scope of 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. Case Studies

Unit2

Unit 2

8 hrs

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) Case Studies Supply Analysis; Law of Supply, Supply Elasticity; Analysis and its uses for managerial decision making. Price of a Product under demand and supply forces . Case Studies

Unit3

Unit 3

10 hrs

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 . Case Studies

Unit4

Unit 4

10 hrs

Market structures: Perfect and Imperfect Market Structures, Perfect 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. Case Studies

Unit5

Unit 5

6 hrs

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.

Course Objectives5 points
  • To understand the importance of Managerial Economics in management and businesses
  • To apply the principles of managerial economics in achieving business objectives
  • Be equipped with the tools necessary in forecasting product demand
  • Understand and be able to apply latest pricing strategies
  • Understand and analyze the macro environment affecting the business decision making.
Course Outcomes (COs)5 outcomes

After completion of the course student will be able to:

  1. CO1Students will be able to remember the concepts of micro economics and also able to understand the various micro economic principles to make effective economic decisions under conditions of risk and uncertainty. ( K 2)K1 (Knowledge, Remembering)
  2. CO2The students would be able to understand the law of demand & supply & their elasticities , evaluate & analyse these concepts and apply them in various changing situations in industry . Students would be able to apply various techniques to forecast demand for better utilization of resources.K2, K4, K6, K7 (Knowledge, Applying, Synthesizing, Evaluating)
  3. CO3The students would be able to understand the production concept and how the production output changes with the change in inputs and able to analyse the effect of cost to business and their relation to analyze the volatility in the business worldK3, K4, K5, K7 (Comprehending, Applying, Analyzing, Evaluating)
  4. CO4The students would be able to understand & evaluate the different market structure and their different equilibriums for industry as well as for consumers for the survival in the industry by the application of various pricing strategicK4, K5, K6 (Applying, Analyzing, Synthesizing)
  5. CO5The students would be able to analyse the macroeconomic concepts & their relation to micro economic concept & how they affect the business & economy.K2, K3 (Knowledge, Comprehending)

Suggested Readings

  1. Managerial Economics ,D.N.Dwivedi,Vikas Publication, 7th Ed
  2. Managerial Economics, GEETIKA, McGraw-Hill Education 2nd Ed.
  3. Managerial Economics: Concepts and Applications (SIE), THOMAS& MAURICE, McGraw-Hill Education, 9th Ed
  4. Managerial Economics, H.L Ahuja, S.Chand, 8th Ed
  5. Managerial Economics – Theory and Applications, Dr.D.M.Mithani, Himalaya Publications, 7th Ed.
  6. Sociology & Economics for Engineers, Dr. Premvir Kapoor, Khanna Publishing House

Official AKTU syllabus

This subject is on page 6, 7 of the original AKTU PDF.

Official AKTU syllabus PDF ↗