Introduction to Managerial Economics and demand Analysis: Definition of Managerial Economics –Scope of Managerial Economics and its relationship with other subjects –Concept of Demand, Types of Demand, Determinants of Demand- Demand schedule, Demand curve, Law of Demand and its limitations- Elasticity of Demand, Types of Elasticity of Demand and Measurement- Demand forecasting and Methods of forecasting, Concept of Supply and Law of Supply.
UNIT – II:
Production and Cost Analyses: Concept of Production function- Cobb-Douglas Production function- Leontief production function - Law of Variable proportions-Isoquants and Isocosts and choice of least cost factor combination-Concepts of Returns to scale and Economies of scale-Different cost concepts: opportunity costs, explicit and implicit costs- Fixed costs, Variable Costs and Total costs –Cost – Volume-Profit analysis-Determination of Breakeven point(simple problems)-Managerial significance and limitations of Breakeven point.
UNIT – III:
Introduction to Markets, Theories of the Firm & Pricing Policies: Market Structures: Perfect Competition, Monopoly, Monopolistic competition and Oligopoly – Features – Price and Output Determination – Managerial Theories of firm: Marris and Williamson’s models – other Methods of Pricing: Average cost pricing, Limit Pricing, Market Skimming Pricing, Internet Pricing: (Flat Rate Pricing, Usage sensitive pricing) and Priority Pricing.
UNIT – IV:
Types of Business Organization and Business Cycles: Features and Evaluation of Sole Trader, Partnership, Joint Stock Company – State/Public Enterprises and their forms – Business Cycles : Meaning and Features – Phases of a Business Cycle.
Unit – V:
Introduction to Accounting & Financing Analysis: Introduction to Double Entry Systems – Preparation of Financial Statements-Analysis and Interpretation of Financial Statements-Ratio Analysis – Preparation of Funds flow and cash flow statements (Simple Problems)
UNIT – VI:
Capital and Capital Budgeting: Capital Budgeting: Meaning of Capital-CapitalizationMeaning of Capital Budgeting-Time value of money- Methods of appraising Project profitability: Traditional Methods(pay back period, accounting rate of return) and modern methods(Discounted cash flow method, Net Present Value method, Internal Rate of Return Method and Profitability Index)