BCM1C01 MANAGERIAL ECONOMICS
Lecture Hours per week: 5, Credits: 4
Internal: 20, External 80, Examination 2.5 Hours
Objectives:
The objective of the course is to acquaint students with the basic principles of micro and
macroeconomics for developing the understanding of theory of the firm, markets and the
macro environment, which would help them in managerial decision making processes.
Module I
Managerial Economics:- – Definition and characteristics – Nature and Scope - Economics Vs
Managerial Economics - Decision making and forward planning – Relationship of managerial
economics with other disciplines - Basic economic tools in management economics – The
role of managerial economist.
(10 Hours, 10 marks)
Module II
Theory of consumer behaviour: - Cardinal analysis - Law of diminishing marginal utility –
consumer surplus; Ordinal approach – indifference curve analysis – consumer equilibrium –
income consumption curve and price consumption curve – Hicksian decomposition of price
effect in to substitution effect and income effect – Demand curve for normal, inferior and
giften goods – concept of elasticity of demand – measurement of various elasticities –
Elasticity of supply.
(20 Hours, 20 marks)
Module III
Market structure:-
a.
Perfect competition: – profit maximization and equilibrium of firm and industry –
short run and long term supply curves – price and output determination.
b.
Monopoly: – Price determination under monopoly – equilibrium of firm –
comparison between perfect competition and monopoly – price discrimination.
c.
Monopolistic competition: price and output determination – product
differentiation – comparison with perfect competition – excess capacity under
monopolistic competition.
d.
Oligopoly:
indeterminate pricing and output – classical models of oligopoly – price leadership -
collusive oligopoly – kinked demand curve.
(20 Hours, 20 marks)
Module IV
An overview of Indian economy - Indian economy since 1991 - Basic characteristics of
Indian economy - Factors that led to the opening up of Indian economy - Indian economy
under WTO regime - Issues in Indian economy: Problems of growth, unemployment, poverty,
inequality in income distribution, inflation – The role of parallel economy – The role of
Government in a market economy.
(15 Hours, 15 Marks)
Module V
Structure and direction of India‘s foreign trade and India‘s trade regulation and promotion -
Exchange rate policy – Intellectual Property Rights - Foreign capital and MNCs in India,
Page 56 of 76Trade reforms - An overview of Kerala economy - Trade and commerce in Kerala - Industrial
development of the state - the role of small scale industries in Kerala economy.
(15 Hours, 15 marks)
Reference Books:
1. R.L. Varshney and K.L. Maheswari, Managerial Economics
2. Ahuja. HL; Business Economics, S. Chand & co.
3. D.N. Dwivedi, Managerial Economics
4. Dr. S. Sankaran, Managerial Economics
5. DM Mithani: Business Economics
6. Seth M L Text Book of Economic Theory
7. K K Dewett: Economic Theory
8. Dutt & Sundaram: Indian Economy
9. Petersen &. "Lewis: Managerial Economics
10.Mote V L peul. S & Gupta G S: Managerial Economics
11. H. Craig Petersen & W. Cris lewis: Managerial Economics
12.Dr. P.N. Reddy and H.R, Appanaiah : Essentials of Business Economics
13.Barry Keating and J. Holton Wilson: Managerial Economics
- Teacher: Layyina P P
Skill Level: Beginner
