Economics for Decision Making syllabus

ECONOMICS FOR DECISION MAKING

Objective: This course is aimed at building a perspective necessary for the application of economic concepts, tools and techniques in evaluating business decision taken by a firm. It will also enable the students to understand the theory and principles and apply them to real world issues to make better decisions.

                                                                                                                        (10 Hours)

Unit I: Introduction:   Nature, Scope and Significance of Managerial Economics - Relationship with other disciplines– Role of Managerial Economist in decision making. Basic concepts of consumption and Utility analysis: Types, Law of Diminishing Marginal utility- Law of Equi -Marginal utility- Indifference curve analysis- Uses and importance of indifference curves (Theory Only)

                                                                                                                        (10 Hours)

Unit II: Demand Analysis and Forecasting: Meaning, Law of demand-Demand Functions, Determinants of Demand - Elasticity of Demand - Demand Forecasting- Methods of Demand Forecasting (Problems).

                                                                                                                        (8 Hours)  

Unit III: Production & Cost Analysis:  cost concepts, classification and determinants- Cost- output relationships- Economies and Diseconomies of Scale-Break-even Analysis (Problems) - Cost Control and cost Reduction- Production functions- Use of production function in decision making- ISO QUANTS-Supply analysis. (Theory Only)

                                                                                                                        (10 Hours)

Unit IV: Markets: Pricing Decisions and methods:  Price determination in Perfect Competition, Monopoly, Oligopoly, Monopsony, Duopoly and Monopolistic competitions - Concept of price determination – Pricing methods- Specific pricing problems- Pricing Strategies (Theory Only)

                                                                                                                        (10 Hours)

Unit V: Macro Economics and Business: Business Cycle and Business policies- Inflation- Deflation- Demand Recession in India- National Income accounting for managers. (Theory Only)

Text Books:

1)      Varshney R.L & Maheshwari.K.L. (2005), Managerial Economics, Sultan Chand & Sons: New Delhi.

References:

1. Mehta   P .L. 2008, Managerial Economics, Sultan Chand & Sons: New Delhi.
2. Sankaran. S 1991, Economic Analysis, Margham: Chennai.
3. Suma Damodaran 2006, Managerial Economics, Oxford University Press: New Delhi.
4. Atmanand, 2007, Managerial Economics, Excel Books: New Delhi