External Marks: 60 Internal Marks: 40 Time: 3 hrs.

MANAGERIAL ECONOMICS Paper Code: OBJECTIVE: The course is aimed at building a perspective necessary for the application of modern economic concepts, precepts, tools and techniques in evaluating business decisions taken by a firm. The course will also look at recent developments in business in the context of economic theory. UNIT-I Nature of managerial economics; its significance in managerial decision making, role and responsibility of managerial economist in a business enterprise; objectives of a firm; basic concepts short and long run, firm and industry, classification of goods and markets, opportunity cost, risk and uncertainty and profit; nature of marginal analysis UNIT-II Nature and types of demand; Law of demand; demand elasticity; elasticity of substitution; consumers equilibrium utility and indifference curve approaches; techniques of demand estimation. UNIT-III Short-run and long-run production functions; optimal input combination; short-run and long-run cost curves and their interrelationship; engineering cost curves; economies of scale; equilibrium of firm and industry under perfect competition, monopoly, monopolistic competition and oligopoly; price discrimination. UNIT-IV Pioneering Pricing, Cost Plus Pricing basic techniques of average cost pricing; multi-product pricing; pricing strategies and tactics; transfer pricing. SUGGESTED READINGS; 1. D. Salvatore, Managerial Economics In A Global Economy. McGraw Hill, N.Y. 2. Dwivedi, D.N, Managerial Economics, Vikas Publishing House, New Delhi. 3. E.F. Brigham And J.L. Pappas, Managerial Economics, Dryden Press, Illinois. 4. J. Hirshleifer, Price Theory And Applications, Prentice Hall Of India, New Delhi. 5. J.Dean, Managerial Economics, Prentice Hall Of India, New Delhi Peterson, Lewis, Managerial Economics, Prentice Hall of India, N.Delhi