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ME Syllabus


MANAGERIAL ECONOMICS

B.com (hons.) SYLLABUS


UNIT-I

Meaning and scope of managerial economics relation with other branches. Fundamental concepts – Opportunity cost principles – incremental principle – principle of time perspective – discounting principle – Firm and its objective – optimization and maximization concepts demand analysis and demand forecasting: Demand function – Demand cures demand for producer goods and consumer goods – Types of demand and distinctions – elasticities – types measurement of elasticities – Business uses of elasticity.

UNIT – II

Theory of production: production function for a single product – Law of production – laws of variable proportions – optimal combination of factors of production – single, output isoquants – output maximization and cost minimization – cob- Douglas production function – managerial uses of production function –cost concepts – Accounting and economic costs – relevant costs of decision making – cost – output relationship in the short run and long run economics and diseconomies of scale. Cost-volume profit analysis break-even charts – assumptions – uses limitations.


UNIT – III

Market structure – perfect and imperfect competition – monopolistic competition – oligopoly – monopoly – predatory and discriminatory competition – destructive competition – potential competition – price and output determination – perfect competition and monopoly – measuring monopoly power-methods – monopolistic competition (chamberian’s group equilibrium model only) – Oligopoly – kinked demand curve model of Paul Sweezy.

UNITY – IV

Pricing policy: objectives – methods – cost plus pricing – incremental pricing – transfer pricing – administered prices – dual pricing – odd number and critical pricing – multiple products – opportunity for multiple products – policy on adding new products and dropping old products multiple product pricing.

UNIT – V

Profits: Nature of profits – theories of profits risk innovation and imperfection theories – profit measurement – conceptual conflict between accountants and economists – profits for control. Business cycles – causes – different phases – innovations theory and political theory – firm’s measures to solve problems regarding pricing and investment decisions during business cycles




     
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