SYLLABUS FOR 1st Semester BBA PROGRAMME Managerial Economics - I (06101204)
Type of Course: BBA
Prerequisite: Practice management principles.
Rationale: .
Teaching and Examination Scheme:
Teaching Scheme Credit External Marks Internal Marks Total
(Hrs./Week) Marks Let Tut Lab T P T CE P 100 4 0 0 4 60 0 20 20 0
Lect - Lecture, Tut - Tutorial, Lab - Lab, T - Theory, P - Practical, CE - CE, T - Theory, P - Practical
Contents:
Sr. No. Topic Weightage Teaching
Hrs. 1 Unit 1 : Introduction to Managerial Economics: 25% 15 Definition of Managerial Economics, The nature and scope of Managerial Economics, Relationship of Managerial Economics with other disciplines.(Mathematics, economics, statistics). Demand Distinction : 1.ProducersDemand andConsumersDemand. 2.Demand for Durable goods and Non durable goods. 3. FirmsDemand and Industries Demand. 4. Short run Demand and Long run Demand. 5.Derived Demand and Autonomous Demand. 6.Sectoral Demand and Market Demand. Demand Forecasting :Definition and Importance of demand forecasting. Methods of Demand Forecasting. Demand forecasting techniques to be removed due to overlapping in other subjects. 2 Unit 2: Theory of Consumer Behavior: Marginal 25% 15 Rate Of Substitution. 1. Law of diminishing marginal rate of substitution. 2. Characteristics of Indifference curve. 3.Budget Constraint/ Price-line /Income expenditure line. 4. Consumers equilibrium with ordinal approach. 5.Income Effect 6.Substitution Effect (slutsky equation) 7.Price Effect (only for normal goods) 8. Price Page 1 of 2 Consumption Curve.(Different shapes of PCC, Derivation of demand curve with the help if PCC) 9.Consumers surplus with ordinal approach. 3 Unit 3 : Elasticity of Demand: Income elasticity and 25% 15 factors affecting Income Elasticity, Concept of Price Elasticity, degrees of price elasticity, factors affecting price elasticity and its application. Methods of measuring price elasticity: 1. Percentage Method. 2. Total Outlay Method. 3. Point Elasticity Method. Concept of Cross Elasticity, degrees of cross elasticity and factors affecting cross elasticity, Relationship between Revenue and Elasticity, Numerical and its Application. Elasticity of Supply along with elasticity of Demand. 4 Brief Introduction about Econometrics 25% 15 Unit 4 : Production Function: Concept of Production function: Total, Average and Marginal Productivity. Isoquants and Iso-cost line (Concept,Characteristics, MRTS), Returns to Scale, Law of variable Proportion. Cost of Production and Cost Curves Concept of Cost: a. Accounting Cost Vs. Economic Cost. b. Money Cost Vs. Real Cost. c. Private and Social costs. d. Fixed Cost Vs. Variable Cost. e. Opportunity Cost. f. Sunk Cost. Cost of Production in the Short Run: a. Fixed cost, Variable cost, and Total cost. b. Average Fixed cost, Average Variable cost, and Marginal cost c. Relationship between Marginal Cost and Average cost. Cost of Production in the Long run: a. Long run marginal cost (LMC) and Long run Average cost (LAC) b. Relation between LMC and LAC
*Continuous Evaluation: It consists of Assignments /Seminars /Presentations /Quizzes /Surprise Tests (Summative/MCQ) etc. Reference Books: Reference Books: Managerial Economics (TextBook), D.M. Mithani; Himalaya Publications; Seventh Edition edition
Course Outcome: Students can develop An understanding of the applications of managerial economics. An Interpret regression analysis and discuss why it's Employed in decision-making. Optimization and utility including consumer behavior. Assess the relationships between short-run and long-run costs.
