Introduction to Managerial Economics

Nature and Scope of Managerial Economics; How is managerial economics useful? Significance of Theory of the Firm; Business vs. Economic Profit; Theories of Profit



Optimization

The Definition of Firm and Industry; Supply and Demand Analysis; Market Equilibrium and its Application; Constraint and Unconstraint Optimization; Introduction to Indifference Curves, Budget Constraint and Consumer Equilibrium; Elasticity of Demand and its Managerial Application



Empirical Demand Functions

Interview and Experimental Methods; Direct Methods of Demand Estimation; Demand Estimation by Regression Analysis with its Application; Demand Forecasting; Quantitative Forecasting; Time Series Analysis; Smoothing Techniques; Single Equation Models and their Relevant Application



Production Theory and Estimation

Production Function with One Variable Input; Production Function with Two Variable Inputs; Optimal Combination of Inputs; Return to Scale, Return to Factor and its Managerial Application; Technology and International Competitiveness



Cost Theory and Estimation

Introduction to Short-Run and Long-Run Cost Curves; Estimating Cost Function and its Application; Cost Elasticity and Economies of Scale; Multi-Plant Economies and Diseconomies of Scale; Learning Curves and Cost Volume Profit Analysis



Market Structure

Competitive Market Efficiency (Perfect Competition); Monopoly; Monopolistic Competition; Oligopoly Models and their Application; Kinked Demand Curve Model; Price Leadership; The Sales Maximization Model and its Practical Relevance



Pricing of Goods and Services

Pricing of Multiple Products; Price Discrimination and its Degrees with Practical Application; Cost Plus Pricing with its Practical Importance



Long-Term Investment Decisions

Risk Analysis; Capital Budgeting; Government in Market Economy