Food and Agri Business School (FABS)

SVVR Educational Society

(For PGDM (ABM), 2015-17 Batch)
Year I
Trimester I: Managerial Economics

Credits: 6 No. of sessions: 30

Course Instructor: Dr. Manoj Kumar Joshi

Objective of the Course:

The operations of modern business and management are very complex. The study of Managerial
Economics provides remarkable understanding of a range of business issues and helps in
analytical decision making. An understanding of the concepts of economics is a must for
managers to orient their policies to the changes taking place in the economy. The course is
designed to help students to appreciate the theoretical issues underlying microeconomics and
achieve better comprehension of the real world business problems. Economic concepts and
appreciation of relevant theories not only helps management students better understand and
predict the economic forces shaping real-world business decisions, but also serves to develop and
strengthen the overall analytical skills of students.

Pedagogy:
Classroom lectures and discussions.

Evaluation:
Assignments 10%
Mid-term 25%
End-term 40%
Class room participation 15%
Attendance (Min. 75% attendance) 10%

Text Books:
Managerial Economics Theory and Applications Dr. D.M. Mithani, Himalaya Publishing
House

Macroeconomics Economics- Theory and Policy- D.N.Dwivedi, Vikas Publishing.

Reference Book:
Managerial Economics, C. H. Petersen, W. C. Lewis, and S. K. Jain, Pearson Education

1
 Session-Plan
Session (each Topic Sub-topic and reading material
of one hour)
1 Nature and Scope Salient Features, Scope and Significance of Managerial
of managerial Economics, Micro and Macro Economics, Economic Concepts
Economics and Principles in Managerial Decision Analysis, Economic
Cycles
2-3 Market Demand Meaning of Demand, Individual and Market Demand, Demand
Analysis Function, Demand Schedule, The Demand Curve, The Law of
Demand and Exceptions, Utility Analysis of Demand, The
Substitution Effect, The Price Effect, Price Elasticity of
Demand, Income Elasticity of Demand, Estimating the
Demand Function
4-5 Supply Analysis Meaning of Supply, The Determinants of Supply, The Law of
Supply, Elasticity of Supply and its measurement, Factors
determining Elasticity of Supply, Estimation of Supply
Function
6-7 Theory of Meaning of Factors of Production, Production function,
Production, Cost Returns to Factor and Returns to Scale, Cost Concepts and
and Revenue Cost Curves, Revenue concepts and Revenue Curves,
Producers Equilibrium
8-10 Forms of Market Forms of Market Meaning and Characteristics; Price and
and its Equilibrium Output Determination under Various forms of market-
monopoly, perfect competition, monopolistic competition,
oligopoly, duopoly. Pricing strategies in various markets
11-12 Pricing strategies Cost plus pricing, Multiple product pricing, Life cycle pricing,
and Practices Transfer pricing, Predatory Pricing, Export Pricing, Pricing for
established products, Competitive bidding of prices, peak load
pricing.
13-15 Theory of Cost and Introduction, Cost concepts, Cost Control, Techniques of Cost
Break even Control, Economies and Diseconomies of Scale, Break even
analysis analysis Assumptions, Formula, Applications and
Limitations
16-18 National Income Gross National Product, Net National Product, Measurement
of National Income, Economic growth and fluctuations,
Consumptions, Savings and Investment
19-21 Money Quantity theory of money, Inflation and effect of inflation on
production and distribution of wealth, Control of Inflation
Money Supply, Liquidity preference and marginal efficiency,
Rate of Interest and Investment
22-24 Banking Definition, Functions and utility of Banking, Principles of

2
 Commercial Banking, Essentials of sound Banking system,
Multiple credit creation, Functions of Central Bank
Measures of credit control and Money Market, National &
International Financial Institutions
25-27 Theories of the Baumols Theory, Marris Theory, Williamsons model,
Firm Behavioural model, Conventional and modern theories of firm
28-30 Basic Development Initiatives and Issues, Industrial Infrastructure of
Characteristics of India
Indian Economy

END TERM EXAMINATIONS