Syllabus (BUSINESS ADMINISTRATION)

Course Type: ME-3

Semester: 3

Course Code: BBBAMEA34

Course Title: Business Economics

(L-P-Tu): 3-0-1

Credit: 4

Practical/Theory: Theory

Course Objective: To impart basic knowledge of the concepts and tools of Economic Analysis as relevant for Business Decision-Making.

Learning Outcome: Course Outcomes This course helps to build the idea about micro and macroeconomics. It also helps to build the foundation economic knowledge for better management and decision making.

SEMESTER III

Paper 1: Business Economics

(4 Credits)

Course Objectives

To impart basic knowledge of the concepts and tools of Economic Analysis

as relevant for Business Decision-Making.

Course Outcomes

This course helps to build the idea about micro and macroeconomics. It also helps to build the foundation economic knowledge for better management and decision making.

Course Content

Unit 1: Introduction to Managerial Economics (Lectures: 10)

Nature and Scope of Managerial Economics: Basic Tools- Opportunity Cost principle, Incremental principle, Equi-Marginal Principle. Principle of Time perspective, Discounting Principle. Uses of Managerial Economics; Demand Analysis: Demand Theory, The concepts of Demand, Determinants of Demand. Demand Function and Elasticity of Demand and its uses in Business decisions.

Unit 2: Production Analysis (Lectures: 8)

Concept of Production, Factors, Laws of Production, Economies of Scale, Economies of Scope, Production functions. Cost Analysis: Cost Concept, Types of Costs, Cost function and cost curves, Costs in short and long run, LAC and Learning Curve.

Unit 3: Market Analysis (Lectures: 10)

Price-output determination in different markets, Perfect competition, Monopoly, Price discrimination under monopoly, Monopolistic competition, Duopoly and Oligopoly markets, Different pricing policies.

Unit 4: Introduction to Macro Economics (Lectures: 10)

National Income Aggregates. Concept of Inflation- Inter-Sectoral Linkages: Macro Aggregates and Policy Interrelationships – Tools of Fiscal and Monetary Policies. Profit Analysis: Nature and Management of Profit, Profit Theories, Function of Profits, Profit policies.

Unit 5: Public Finance (Lectures: 7)

Different sources of public revenue, Direct and Indirect Taxes, Public Debt, Public Expenditure, Deficit Budget

Suggested Readings:

Agarwal M.K. (2015), Industrial Economics, New Age International.

Thomas & Maurice (2015), Managerial Economics, Tata McGraw Hill

Koutsoyiannis.A. (2013) Modern Micro Economics. Mc Millan

Peterson H.C & Lewis (2003) Managerial economics, Tata McGraw Hill