CCA1002 Business Economics L T P J C

3 0 0 0 3
Pre-requisite NIL Syllabus version
1.1
Course Objectives:
1. To enable students to identify and explain economic concepts and theories related to the
behaviour of economic agents, markets, industry and firm structures
2. To integrate theoretical knowledge with quantitative and qualitative evidence in order to
explain past economic events and to formulate predictions on future ones.
3. To evaluate the consequences of economic activities and institutions for individual and social
welfare

Course Outcomes:
Students will be able to:
1. Understand the discipline of business economics
2. Analyse how consumers and producers make decisions
3. Evaluate the production and pricing decisions of business firms
4. Understand the general principles of how the market economy functions
5. Develop the skills to use theories, models and graphs to analyse economic issues in business

Student Learning Outcomes (SLO): 2, 9, 11, 12

2. Having a clear understanding of the subject related concepts and of contemporary issues
9. Having problem solving ability - solving social issues and engineering problems
11. Having interest in lifelong learning
12. Having adaptive thinking and adaptability
Module:1 Introduction 6 hours
Objectives and Scope of Business Economics -Demand Analysis: Consumer Equilibrium- Law of
Diminishing Marginal Utility Theory – Law of Demand – Demand determinants.

Module:2 Elasticity of Demand 6 hours

Elasticity of Demand – Types – Importance of Elasticity of Demand in Management – Demand
Forecasting.

Module:3 Supply Analysis 5 hours

Law of Supply – Elasticity of Supply – Factors influencing Supply.

Module:4 Production Analysis 6 hours

Producer’s Behavior – Production Function – Law of Variable Proportion – Law of Returns to
Scale.

Module:5 Cost Analysis 5 hours

Cost and Revenue Functions- Types – Short Run – Long Run – Areas of Cost Control.
Module:6 Break - Even Analysis 5 hours
Break-even Point – Determination of Break-even Point – Managerial uses of Break-even Analysis.

Module:7 Market Structure & Pricing 6 hours

Perfect, Imperfect, Monopolistic, Monopoly, Oligopoly Pricing- Role of Pricing in Market.

Module:8 Objectives of Business Firm 6 hours

Sales or Revenue Maximization Theory- Objectives of Pricing Policy – Factors- Pricing
Strategies: Skimming – Penetration Pricing.

Total Lecture Hours: 45 hours

Text Book(s)
1. Pyndik & Rubinfied “Modern Micro Economics”, Pearson Education, Seventh Edition,
2009.
Reference Books
1 Varian H.R., “Intermediate Microeconomics: A Modern Approach”, East West Press Pvt.,
Ltd, New Delhi, Eighth Edition, 2015.
2. Dominick Salvatore, Principles of Microeconomics, Oxford University Press, Fifth Edition,
2015.
3. Paul Keat, Managerial Economics, Philip Young, Global Edition, 7th Edition, 2013.
4. Joseph Nellis, David Parker , Principles of Business Economics, 2nd Edition, , Financial
Times Prentice Hall Publisher, 2006.
5. ManabAdhikary, Anurag , Business Economics, Jain Publishers, New Delhi, 2008.
Mode of Assessment: CAT / Assignment / Quiz / FAT
Recommended by Board of Studies 12-08-2017
Approved by Academic Council No:46 Date 24.08.2017