Nature and Scope of Managerial Economics, role and Responsibility of a Managerial Economist. The fundamental concepts of Managerial Economics, theory of the firm and the role of profits Theory of Demand- concept, determinants of Demand, Demand Function and econometric techniques. Theory of Supply- concept, determination, analysis, supply function. Elasticity of Demand- concept, measurement. Concept of Consumer’s surplus.
Analysis and costs estimation-economic Concept of Cost, Different Types of Cost: Managerial uses of cost Function; Production Function to cost function-long run and short run total cost, Break-even Analysis Make or Buy Decisions.
Market structure and pricing decisions-the competitive and monopoly model, monopolistic competition and oligopoly, pricing of multiple products.
National income-concept and measurement. Business cycles, fiscal policy, Inflation. The new economy-definition and characteristics.