1. Nature and Scope of Managerial Economics

2. Objectives of firm - theory of the firm - Managerial and behavioural theories of the firm.

3. Fundamental Concepts: Incremental Concept. Concept of Time Perspective. Discounting Principle. Opportunity Cost concept - Equimarginal Concept.

4. Demand Analysis - Purpose of demand analysis: determinants of demand; concepts of demand; Socio economic analysis of demand - Elasticities of demand.

5. Demand Forecasting: Methods of demand forecasting for established and new products. Criteria for good forecasting method.

6. Cost and Production Analysis: Cost Concepts, Cost-out put relationships - Economics of Scale and Scope; Law of variable proportions; Return to scale; Single out put isoquants - Out put maximisation and cost minimisation - Managerial uses of production function.

7. Pricing: Prescriptive approach - Price determination under perfect Competition, monopoly, monopolistic and oligopoly markets; Descriptive approach. Full cost, loss leader, skimming, penetration, product line and PLC Pricing; Incremental reasoning in pricing.

8. Profits & Breakeven Analysis: Profit Theories, Measurement, Standards, and Policies - Breakeven analysis - Use and Limitations.

Note: A few cases may be discussed in teaching this paper.

Suggested Readings:
1. Joel Dean : Managerial Economics
2. P.G. Apte : Economics for Managers
3. Farrar and Meyer : Managerial Economics, 3 Ed.,

Further References:
4. Savage & Small: Introduction to Managerial Economics.
5. P.L. Mehta: Managerial Economics, 5th Ed., Sultan Chand & Sons, 1997.