Managerial Economics-I
Subject Overview
Managerial Economics-I is BBA's introduction to how core economic principles translate into real business decisions — demand, cost, and market structure, all viewed through a manager's lens. It opens with the foundational tools of managerial economics (opportunity cost, the production possibility curve, incremental and scarcity concepts) before moving into demand analysis, elasticity, and demand forecasting, and closes Unit I with indifference curve analysis and consumer equilibrium. The middle units cover production function theory (isoquants, returns to scale) and cost theory, followed by revenue curves and the four classic market structures — perfect competition, monopoly, monopolistic competition, and oligopoly. The final unit covers pricing practices and factor pricing, including collective bargaining and the basics of capital theory. This is a 6-credit General Elective paper across 4 units, and it lays the groundwork for Managerial Economics-II in Semester 2.
Unit-wise Syllabus
4 units — click WhatsApp below to get the full notes for each
Unit 1: Introduction to managerial economics & demand analysis
Meaning, nature, scope and relationship with other disciplines, opportunity cost principle, production possibility curve, incremental and scarcity concepts, demand function and determinants, demand elasticity, demand estimation and forecasting, indifference curve analysis and consumer equilibrium
Unit 2: Production function & theory of cost
Production function, productivity and technology, short-run and long-run production function, isoquants, least-cost combination of inputs, producer's equilibrium, returns to scale, cost concepts and determinants, short-run and long-run cost theory
Unit 3: Revenue curves & market structures
Concept and types of revenue, total/average/marginal revenue and their relationship, elasticity of demand and revenue, perfect competition, monopoly, monopolistic competition, collusive and non-collusive oligopoly, price leadership model
Unit 4: Pricing practices & factor pricing
Pricing practices, commodity pricing and economics of advertisement costs, demand and supply of factors of production, collective bargaining, rent, profit and interest, real vs. nominal interest rates, basic capital theory