Managerial Economics |
Unit
1.Economics and managerial decision-making. Distinctive features of Managerial
Economics. Demand function and determinants. Types of elasticity of demand:
Price elasticity, Income elasticity, and cross elasticity. Methods for
forecasting of demand.
Unit.2
Equilibrium of firm:- The Marginal analysis. General and partial equilibrium;
Stable and unstable equilibrium. Dynamic and Static Equilibrium. Revenue and Cost concepts- total, average
and marginal. Cost function. Conceptual differences between economists’ and
accountants’ cost, opportunity cost, social and private cost, long run and
short run cost. Planning curve. Cost of multiple products.
Unit 3.
Production functions and its uses and features., Iso-quants and Iso-cost
curves. Least-cost combination of inputs. Returns to scale and laws of variable
proportion in production. Economies and diseconomies of scale.