B.B.M- Mangalore University -MANAGERIAL ECONOMICS

SEMESTER II
BM- 151: MANAGERIAL ECONOMICS
Objective: Providing basic Knowledge to apply concepts and theories to facilitate
decision making and forward planning
UNIT I
Nature and Scope of Managerial Economics-Basic Economic Tools in Managerial Economics-Role and Responsibility of Managerial Economist
Concepts of Cost- Cost output relationship in the short run and long run-Cost control and Cost reduction
Concepts of Revenue- Total Revenue-Average Revenue- Marginal Revenue
12 Hrs
UNIT II
Equilibrium of the firm-MC and MR Approach
Price and Output determination under different forms of market-Perfect Competition Monopoly-Monopolistic Competition-Price discrimination-Monopsony
Bilateral Monopoly-Oligopoly-Oligopsony
12 Hrs
UNIT III
Production Function-Law of Diminishing Returns-Law of Increasing Returns-Law of Variable Proportions-Laws of Returns to Scale-Isoquants. Marginal Rate of Technical Substitution-Economies and Diseconomies of Scale. Economies of Scope
Gross profit and Net profit- Profit Maximization v/s Sales Maximization Baumols Sales Maximization Model- Capital Budgeting-Importance
12 Hrs
UNIT IV
Demand Forecasting- Factors involved-objectives of Short run and long run demand forecasting- Determinants of demand- Forecasting demand for new products-Overseas demand Analysis-Criteria of a good forecasting method- Techniques of demand forecasting
12 Hrs
--------
Total 48 Hrs.
--
------
BO
OKS FOR STUDY
1. H.L. Ahuja- Business Economics -Micro
2.
2. R.L.Varshney and K.L. Maheshwari-Managerial Economics( 18th Revised and
En
larged Edition
3. D. M. Mithani-A Course in Business Economics
4. D.N. Dwivede - Managerial Economics (6th revised edition)
BOOKS FOR REFERENCE
1 Paul A. Samuelson & William D Nordhaus -Economics
2 Alfred W. Stonier & Douglas. C. Hague -A Text Book of Economic Theory