ECOM531:MANAGERIAL ECONOMICS-I

L:2 T:1 P:0 Credits:2

Course Outcomes: Through this course students should be able to

CO1 :: understand the concepts of cost, nature of production and its relationship to business
operations.

CO2 :: integrate the concept of price and output decisions of firms under various market
structure.

CO3 :: evaluate the implications of various elasticities for managerial decisions.

CO4 :: apply the marginal analysis to the firm under different market conditions.

CO5 :: analyze the real world business problems with the systematic theoretical framework.

CO6 :: apply the concepts of managerial economics to the global business and investment
climate faced by MNCs.

Unit I
Introduction : Economics and managerial decision making, global economics

Firm : definition, economics goal and optimal decision making of firm, goals other than profit, firms in
global economic environment
Unit II
Demand and Supply : definition, types, individual vs market demand, market equilibrium and
adjustments, rationing function of price, allocating function of price, Elasticity of Demand
Supply Analysis : short and long run supply curve behavior and its implications, mathematics of
supply and demand
Unit III
Theory of Production : production and production function with one and two variable inputs,
concept of returns to scale, innovation process and global competitiveness
Revenue and cost : meaning of revenue and cost and their relationships, profit maximization by
total revenue and cost approach
Unit IV
Market Structure : definition of market structure, price and output determination under perfect
competition, monopoly and monopolistic competition
Oligopoly : types, meaning and sources, cartelization and price leadership under oligopoly

Unit V
Pricing Practices : pricing of multiple products, transfer pricing, price discrimination and dumping,
various types of pricing in practice
Unit VI
The Multinational Corporation in a Global Setting : opportunities for MNC in a global economy,
doing business in some key industries of India, business and investment climate, risks faced by MNC’s

Text Books:
1. MANAGERIAL ECONOMICS- PRINCIPLES AND WORLDWIDE APPLICATIONS by SALVATORE,
DOMINICK AND RASTOGI, SIDDHARTHA K, OXFORD UNIVERSITY PRESS
2. MANAGERIAL ECONOMICS by PIYALI GHOSH, GEETIKA, PURBA ROY CHOWDHURY, Tata
McGraw Hill, India
References:
1. MANAGERIAL ECONOMICS by DAMODARAN, SUMA, OXFORD UNIVERSITY PRESS

2. BUSINESS ENVIRONMENT by SHAIKH SALEEM, PEARSON

3. MANAGERIAL ECONOMICS by D.M. MITHANI, HIMALAYA PUBLISHING HOUSE PVT. LTD

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