Syllabus Economic Analysis for Business Systems - (MG25301) Introduction to Economic Principles : The problem of scarcity and allocation of resources - Nature, Scope, & Significance of Managerial Economics - Roles and Responsibilities of Managerial Economist - The circular flow of Economy - The Basic process of decision making - Types of Economic Analysis : Micro and Macro Economics. (Chapter - 1) Activities : A Group task to demonstrate scarcity opportunity cost. Demand, Supply, and Consumer Behaviour : Market Equilibrium - Law of Demand, Demand Function, and Exceptions to the Law of Demand - Elasticity of Demand : Classification of Price, Income and Cross elasticity, Advertising, and promotional elasticity of demand - Measurement of elasticity of demand - Law of supply, Supply Function, Elasticity of supply. (Chapter - 2) Activities : Real time data based analysis of elasticity of demand. Theory of Production and Cost Analysis : Production Function : Meaning, Features and types - Short-run and Long-run Production Function - Isoquants and ISO costs, Least-cost combination factor - Economies and Diseconomies of scale - Technological progress - Cost behaviour in Short-run and Long-run - Types of cost : Accounting and Economic cost - Cost concepts - LAC curve - Break-Even Analysis (BEA) : Determination of Break-Even Point. (Chapter - 3) Activities : Illustration of economies of scale/break even analysis based real time news reports. Market Structures, Pricing, and Capital Budgeting : Forms of Business Organizations : Sole Proprietary, Partnership, Joint Stock Companies - Types of Markets : Perfect and Imperfect Markets - Features of Perfect Competition, Monopoly, Monopolistic and Oligopoly - Price-Output Determination and Price Discrimination. (Chapter - 4) Activities : Identifying and classifying sectors/companies that come under different market structures. Capital Budgeting : Capital and its Significance : Estimation of fixed and working capital requirements - Methods and sources of raising capital - Capital Budgeting Methods : Payback period, Accounting rate of return, Net present value, Internal Rate of return, and Profitability index. (Chapter - 5) Activities : Using real or hypothetical data to select project based on NPV, IRR and PI. Macroeconomic Framework and Financial Analysis : National Income and its Components : GNP, NNP, GDP, NDP - Methods of measuring National Income - Business Cycles and Stabilisation - Monetary and Fiscal Policy : Central Bank and the Government, FDI, Inflation, Unemployment, Taxes and Subsidies - External sector Export and Import. (Chapter - 6) Activities : Recent budget analysis.
