Managerial Economics contains the topics of demand, production, costs, market structures and product pricing, macro economics, oligopoly, perfect competition, monopoly.
Meaning of economics, characteristics of economics, nature of economics, managerial economics- an interdisciplinary science, scope of economics, importance of economics, fundamental concepts or basic economic tools in economics, the decision making process in economics.
OBJECTIVES OF BUSINESS FIRMS
Profit maximization, satisfactory level of profits, sales maximization, sales maximization process- baumol’s model, behavioral theory of the firm, other objectives, social responsibilities of business firms.
BASIC ECONOMICAL CONCEPTS IN MANAGERIAL ECONOMICS
Introduction, basic concepts in managerial economics, the opportunity cost principle, relevance of opportunity cost, marginal anaylsis of the incremental principle, difference between marginal concept and incremental concepts, the time perspective principle, the discounting principle, the equi-marginal principle,.
THEORIES OF THE FIRM- MARGINALIST, MANAGERIAL AND BEHAVIORAL
The concept of a firm, objectives of the firm, conflict and complementary between different objectives, the trade off between profits and leisure. The profit-maximization hypothesis, the two approaches to the equilibrium of a profit maximization firm. The two approaches of firm’s equilibrium, equilibrium of firm under perfect competition,equilibrium of a multi-product firm, The isorevenue curve. Equilibrium of the multi-product firm, the profit maximization assumption, freidman’s position, critiscim of freidmman’s position, the nature of the firm- the classical theory, critique of the classical theory of the firm, managerial capitalism and profit maximization, concluding observations, alternatives theories of the firm, the entrepreneurial firm. Baumol’s theory of sales revenue maximization.