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UNIT-I
Introduction to Managerial Economics and demand Analysis: Definition of Managerial Economics
–Scope of Managerial Economics and its relationship with other subjects –Concept of Demand, Types
of Demand, Determinants of Demand- Demand schedule, Demand curve, Law of Demand and its
limitations- Elasticity of Demand, Types of Elasticity of Demand and Measurement- Demand forecasting
and Methods of forecasting, Concept of Supply and Law of Supply.
UNIT-II
Theories of Production and Cost Analyses: Theories of Production function- Law of Variable proportionsIsoquants and Isocosts and choice of least cost factor combination-Concepts of Returns to scale and
Economies of scale-Different cost concepts: opportunity costs, explicit and implicit costs - Fixed costs, Variable
Costs and Total costs –Cost –Volume- Profit analysis-Determination of Breakeven point(problems)-
Managerial significance and limitations of Breakeven point.
UNIT-III
Introduction to Markets, Theories of the Firm & Pricing Policies: Market Structures: Perfect Competition,
Monopoly, Monopolistic competition and Oligopoly – Features – Price and Output Determination – Managerial
Theories of firm: Marris and Williamson’s models – other Methods of Pricing: Average cost pricing, Limit Pricing,
Market Skimming Pricing, Internet Pricing: (Flat Rate Pricing, Usage sensitive pricing) and Priority Pricing,
Business Cycles : Meaning and Features – Phases of a Business Cycle. Features and Evaluation of Sole
Trader, Partnership,Joint Stock Company – State/Public Enterprises and their forms.
UNIT-IV
Introduction to Accounting & Financing Analysis: Introduction to Double Entry System, Journal,
Ledger, Trail Balance and Preparation of Final Accounts with adjustments – Preparation of Financial
Statements-Analysis and Interpretation of Financial Statements-Ratio Analysis – Preparation of Funds
flow and cash flow analysis (Problems)
UNIT-V
Capital and Capital Budgeting: Capital Budgeting: Meaning of Capital-Capitalization-Meaning of Capital
Budgeting-Time value of money- Methods of appraising Project profitability: Traditional Methods(pay back
period, accounting rate of return) and modern methods(Discounted cash flow method, Net Present Value
method, Internal Rate of Return Method and Profitability Index)