Managerial Economics

MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
UNIT I
INTRODUCTION TO MANAGERIAL ECONOMICS : Definition, Nature and Scope Managerial Economics–Demand Analysis: Demand Determinants, Law of Demand and its exceptions.
UNIT II
ELASTICITY OF DEMAND : Definition, Types, Measurement and Significance of Elasticity of Demand. Demand Forecasting, Factors governing demand forecasting, methods of demand forecasting (survey methods, statistical methods, expert opinion method, test marketing, controlled experiments, judgmental approach to demand forecasting).
UNIT III
THEORY OF PRODUCTION AND COST ANALYSIS : Production Function – Isoquants and Isocosts, MRTS, Least Cost Combination of Inputs, Production function, Laws of Returns, Internal and External Economies of Scale.
Cost Analysis : Cost concepts, Opportunity cost, Fixed Vs.Variable costs, Explicit costs Vs.Implicit costs, Out of pocket costs vs. Imputed costs. Break-even Analysis (BEA)-termination of Break-Even Point (simple problems)-Managerial Significance and limitations of BEA.
UNIT IV
INTRODUCTION TO MARKETS & PRICING STRATEGIES : Market structures: Types of competition, Features of Perfect competition, Monopoly and Monopolistic Competition. Price-Output Determination in case of Perfect Competition and Monopoly. Pricing Strategies
UNIT V
BUSINESS & NEW ECONOMIC ENVIRONMENT : Characteristic features of Business, Features and evaluation of Sole Proprietorship, Partnership, Joint Stock Company, Public Enterprises and their types, Changing Business Environment in Post-liberalization scenario.
UNIT VI
CAPITAL AND CAPITAL BUDGETING : Capital and its significance, Types of Capital, Estimation of Fixed and Working capital requirements, Methods and sources of raising finance. Nature and scope of capital budgeting, features of capital budgeting proposals, Methods of Capital Budgeting: Payback Method, Accounting Rate of Return (ARR) and Net Present Value Method (simple problems).
UNIT VII
INTRODUCTION TO FINANCIAL... [continues]

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