Managerial Economics Syllabus in MBA

January 21, 2021

Managerial Economics is an important subject in management courses like PGDM, MBA, B.com, M.com, BBA. Here we have shared all the topics that are in the syllabus of Managerial Economics in Master of Business Administration.

Why we study Managerial Economics?

Managerial Economics can define as the combination of economic theory, decision science with business practices to ease decision-making and future planning by management.

All the economic theories, tools, and concepts are covered under managerial economics to analyze the business environment.

M. Economics deals with allocating scarce resources in a manner that minimizes the cost and maximizes the profits. Wherever there are scarce resources, managerial economics ensures that managers make effective and efficient decisions concerning customers, suppliers, competitors as well as within an organization.

Managerial Economics Syllabus

M.E. Syllabus in Masters of Business Administration – 2 Year.

Subject Name: Managerial Economics
Subject Code: MBAT 104
Course: MBA First Semester 2020-21
University: Uttarakhand Technical University
Total Credit: 3
Internal Marks: 30
External Marks: 70
Total Marks: 100

Note: This syllabus is as per MBA Academic Session 2020-21 of Uttarakhand Technical University, UTU Dehradun. New Scheme of Examination as per AICTE Flexible Curricula.

Managerial Economics syllabus (MBA – 2 Year)

Unit1 – Introduction

Introduction,
Evolution,
Nature,
Scope and Significance,
Circular Flow in an Economy,
Principles,
Production Possibility Frontier,
Managerial Economics: Micro and Macro Economics.

Unit 2 – Market Forces: Demand and Supply

(a) Demand Analysis:
Theory of demand;
Objectives of demand analysis and determinants of demand;
theory of consumer behavior;
The elasticity of demand and its measurement methods;
importance in decision-making.

(b)Supply Analysis:
The objective of supply analysis; Determinants of supply, Elasticity of
Supply.

Unit 3 – Production Function and Cost Analysis

Theory of Production and Cost Analysis;
Production Functions and its Managerial Uses;
Cobb Douglas Production Function,
Laws of Production and analysis :
Empirical Estimates of Production and Cost;
short-run and Long-run average cost curves and their analysis ;
Economies and Diseconomies of scale.

Unit 4 – Organization of the Firm

Pricing Decision:
Pricing under different Market Structures:
Perfect and Imperfect (Monopoly, Duopoly, Monopolistic Competition, Oligopoly Markets),
Pricing Policies and Strategies;
Collusive and Non-Collusive Oligopoly;
Baumol’s Marries’ and O. Williamsons Model.

Unit 5 – Factor Pricing

Determination of Factor Pricing;
Marginal Productivity Theory;
Ricardian and Modern Theories of rent;
Modern Theory of Wage rate determination;
Classical,
Neo-Classical and Keynesian
Theory of Interest;
Modern Theory of Profit;
Welfare Economics;
Pareto Optimality Conditions;
Social Welfare Function.

Note: Numerical Questions should be set on elasticity, break-even analysis, demand forecasting, and optimum output determination under the law of variable proportions.

Course Outcomes

1. To apply the mixture of the various economic concepts in solving business problems for business efficiency to make the best use of the resources in hand.

2. To analyze and evaluate the effect of demand and supply on market dynamics and to apply concepts of price, cross, and income elasticity in business to take correct decisions and create new ideas for the future growth of the company

3. To analyze, demonstrate and take decisions with the help of various tools and concepts to maximize the production at limited or minimum cost and resources available with the company.

4. To analyze evaluate create different pricing policies and apply those pricing decisions in dynamic and different types of market conditions. To judge and improve the management approach as a top-level manager for the optimum growth of the organization.

5. To apply and evaluate various theories of factor pricing and determine the reward for the various factors of production required as well as employed in the business.