ECO113:BUSINESS ECONOMICS

L:3 T:1 P:0 Credits:4

Course Outcomes: Through this course students should be able to

CO1 :: apply cost analysis in the short run and long run to make production-related decisions

CO2 :: analyze the central problems of an economy and their significance in decision-making

CO3 :: analyze and interpret market equilibrium and the impact of changes in demand and supply
on it.
CO4 :: analyze the causes and consequences of inflation and unemployment in the economy.

CO5 :: outline importance of business environment in economic decision

CO6 :: evaluate different strategies and policies used to control and mitigate the impact of
business cycles.

Unit I
Fundamentals : definition and scope of business economics, positive and normative economics,
micro and macro economics, economic problem - scarcity and choice, central problems of an
economy, production possibility curve, working of economic systems
Unit II
Demand and Supply Analysis : law of demand and its determinants, law of supply and its
determinants, market equilibrium, changes in market equilibrium, price, income, and cross elasticities
of demand
Unit III
Cost, Revenue and Production Analysis : kinds of costs, costs in short run, costs in long run,
break-even analysis, types of inputs, production function with one variable input
Market Structures : perfect competition, monopoly, monopolistic competition, oligopoly, pricing
strategies under different market structures
Unit IV
National Income : concepts of national income, measurement of national income, uses of national
income data, difficulties in the measurement of national income
Business Environment : concept of business environment, features of business environment,
importance of business environment, types of business environment - economic and non-economic
Unit V
Macroeconomic Phenomena : circular flow of economic activities and income, consumption
function, investment function, concept of multiplier, inflation and its types, unemployment and its
types
Unit VI
Business Cycles : features of business cycles, phases of business cycles, causes of business cycles,
effects of business cycles, controlling business cycles

Text Books:
1. MANAGERIAL ECONOMICS, by PIYALI GHOSH GEETIKA, PURBA ROY CHOWDHURY, Mc
Graw Hill Education
References:
1. MODERN MICRO ECONOMICS by KOUTSOYIANNIS A, MACMILLAN

2. ESSENTIALS OF BUSINESS ECONOMICS by D N DWIVEDI, VIKAS PUBLISHING HOUSE

3. BUSINESS ECONOMICS by K. RAJAGOPALACHAR, ATLANTIC PUBLISHERS

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