Managerial Economics short definition MBA lecture notes

Unit 1. Introduction to Managerial Economics

Introduction -Definitions of Managerial Economics – Nature of Managerial Economics – Scope of Managerial Economics -Significance of Managerial Economics -Economic Problems – Meaning of Economic Problem -Basic Economic Problems. you can read more Production/operations management

Unit 2. Profit

Meaning of Profit -Types of Profit -Theories of Profit -Measurement of Profit -Profit Policy -Reasonable Profit Target

Unit 3. Demand

Concept of Demand -Determinants of Demand -Demand Schedule -Demand Curve -The Law of Demand -Assumptions underlying the Law of Demand -Exceptions of the Law of Demand -Changes in Quantity Demanded and Changes in Demand

Unit 4. Elasticity of Demand

Introduction -Price Elasticity of Demand -Types of Price Elasticity -Measurement of Elasticity -Factors Influencing Price Elasticity of Demand -Practical Significance of the Concept of Elasticity of Demand -Income Elasticity of Demand : Measurement, Types and Uses of the Concept -Cross Elasticity of Demand : Concept, Measurement and its Uses

Unit 5. Demand Forecasting

Meaning and Importance -Necessity of Forecasting Demand -Factors Influencing Demand Forecasts -Techniques or Methods of Forecasting Demand -Criteria for a Good Demand Forecast

Unit 6. Supply Analysis

Meaning of Supply -Determinants of Supply -The Law of Supply -Assumptions underlying the Law -Exceptions to the Law -Expansion & Contraction in Supply -Increase & Decrease in Supply -Causes of Change in Supply -Elasticity of Supply -Measurement of Elasticity of Supply -Factors Determining Elasticity of Supply

Unit 7. Production and Costs – I

Introduction -Production Function -Practical importance of Production Function -Linear Homogeneous Production Function -Time-Periods -The Law of Diminishing Returns or The Law of Variable Proportion -Returns to Scale or Laws of Returns to Scale -Economies and Diseconomies of Scale

Unit 8. Production and Costs – II

Cost Concepts (Meaning and Importance) – Accounting Costs -Economic Costs -Opportunity Costs -Explicit and Implicit Costs -Other Production Costs -Firms’ Cost Curves -Determinants of Costs -Break-Even Point

Unit 9. Pricing and Output Determination under Perfect Competition

-Introduction -Concept of Market -Classification of Market based on the nature of Competition -Pure Competition -Perfect Competition -Demand Curve under Perfect Competition -Working of Price Mechanism under Perfect Competition -Equilibrium of Firm and Industry under Perfect Competition

Unit 10. Imperfect Competition

Introduction -Monopoly -Distinction between Perfect Competition and Monopoly -Determination of Price and Output (Equilibrium Under Monopoly) -Price Discrimination under Monopoly -Conditions of Equilibrium under Price-Discrimination -Equilibrium under Discriminating Monopoly -Dumping -Degrees of Price Discrimination -Monopolistic Competition -Determination of Price and Output under Monopolistic Competition -Comparison of Long-Run Equilibrium under Perfect Competition and Monopolistic Competition -Monopsony -Oligopoly and Duopoly -Miscellaneous Issues in Monopolistic Competition

Unit 11. Pricing Methods or Pricing Practices

Introduction -Full Cost or Cost Plus Pricing -Going Rate Pricing -Marginal Cost Pricing -Some Other Approaches -Some Guidelines for Fixation -Pricing in Public Sector Undertakings (PSUs) -Pricing in Co-operative Societies.

Unit 12. Cost Benefit Analysis

Introduction -Public Goods vs. Private Goods -Externalities -Marginal Cost -Average Cost -Impure Public Goods -Steps in Cost Benefit Analysis -Justification for the use of Cost-Benefit Analysis -Cost-Benefit Analysis: Private and Social -Policies to Reconcile Private and Public Costs and Benefits -Cost Benefit Analysis and Overall Resource Allocation -Overall Resource Allocation -Foundations of Market System of Economy.

Unit 13. Macro Economic Analysis

Introduction -Importance of Macro-Economic Studies -Keynesian Macro-Economic Theory -Determination of Equilibrium Level of Output/ Employment -Keynesian Remedy to Unemployment : Government Intervention -Business Fluctuations -Inflation -Macro Policies.

Unit 14 Government and Private Businesses

Introduction -Need for Government Intervention -Cause for Rise in Prices in India -Price Controls in India -Protection of Consumer Interest – The New Industrial Policy 1991 -MRTP ACT -De-Reservation – Further Liberalisation -Economic Liberalisation -The Process of Disinvestment: Need and Methods -Disinvestment of Public Sector Shareholding €” the Indian Experience.


Summary in all units

Question and answer in all units

Keyword short description

Above are all Managerial Economics short definition of lesson wise.

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