ECONOMICS FOR MANAGERIAL DECISION MAKING-I
(ECONOMIC ANALYSIS SIMPLIFIED FOR YOU)
COURSE DURATION: 20 HOURS PER SEMESTER
COURSE CREDITS: 02
1. ESSENCE OF ECONOMICS
Problems of an economy; Solutions of these problems; Alternative system to tackle the problems; Economics, micro – economics & macro – economics; Basis building blocks of microeconomics – rationality, marginalism, opportunity cost, general & partial equilibrium.
2. FALLACIES AND PITFALLS
Economics is about decision making, fallacies in decision making, fallacy of assumption, fallacy of composition, fallacy of subjectivity, fallacy of post hoc proctor hoc, fallacy of syllogism, fallacy of black & white or gray; Fallacy of broken window, lessons for firm.
3. DEMAND ANALYSIS AND CONSUMER BEHAVIOUR
Demand Analysis: Concept of demand & demand functions; Demand schedule & demand curve; Kinds of demand; Law of demand; Exceptions of the law; Factors influencing demand; expansion / contraction of demand vs. increase / decrease in demand, significance of demand analysis for the firm. Elasticity of Demand: Concept of elasticity, price elasticity of demand; Meaning, values, determinants, measurement & implications; Slope vs. elasticity; TR, TE & eDP, AR, MR & eDP, strategies to maximize total revenues, cross elasticity of demand; Income elasticity of demand: Meaning values & measurement; Income elasticity vs. income sensitivity; Advertising elasticity of demand; Significance of the concept of elasticity of demand for the firm. Utility Analysis: Consumer behaviour, choice & utility; Concept of TU, MU & AU; LDMU; LEMU; Equilibrium of a consumer; Explanation of falling demand; Income, substitution, & price effects & consumer choices; Paradox of value; Consumer surplus; Significance for a seller. Indifference Curve Analysis: Meaning; Kinds; Properties; Indifference map; Budget line; Equilibrium.
4. SUPPLY ANALYSIS & PRICE FORMATION
Supply Analysis: Concept; Types; Factors dictating...
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