Managerial Economics Notes | B.B.A. LL.B. (Five Years) Semester 3 | SPPU | munotes

Contents

Module 01 Introduction

1. What Managerial Economics Is: Definition, Nature, Scope and Importance 1
2. Microeconomics and Macroeconomics 6
3. The Problem of Choice and the Basic Economic Problems 11
4. The Price Mechanism in a Mixed Economy 18
5. How Demand and Supply Set the Price 24
6. The Circular Flow of Income 28

Module 02 Demand Analysis

1. Demand: Its Meaning, Kinds and Determinants 34
2. Demand and the Law of Demand 39
3. Elasticity of Demand 45
4. Income Elasticity, Cross Elasticity and What Elasticity Is For 51
5. The Concepts of Revenue: Total, Average and Marginal Revenue 57

Module 03 Supply Analysis

1. Supply and the Law of Supply 62
2. The Factors Affecting Supply 69

Module 04 Cost Analysis

1. The Production Function 77
2. The Concepts of Cost: Total, Fixed, Variable, Average, Marginal and Opportunity Cost 82
3. The Opportunity Cost Principle 88
4. The Law of Variable Proportions 92
5. Economies of Scale 98

Module 05 Pricing under various Market Conditions

1. Market Structure: The Four Forms 103
2. Perfect Competition 109
3. The Equilibrium of the Firm and the Industry 115
4. Monopoly 120
5. Monopolistic Competition 128

Module 06 Distribution

1. The Functional and Personal Distribution of Income 134
2. Production, the Factors of Production and Their Rewards 138
3. The Nature of Factor Markets 145
4. The Marginal Productivity Theory of Distribution 150
5. The Ricardian Theory of Rent 156
6. The Modern Theory of Rent and Transfer Earnings 162
7. Wages: Real and Money Wages, the Minimum Wage and Wage Differentials 167
8. Collective Bargaining and Wages 173
9. Monopsony 179
10. The Classical Theory of Interest 184
11. Keynes's Liquidity Preference Theory of Interest 189
12. The Dynamic Theory of Profit 195
13. The Innovation Theory of Profit 200
14. The Risk and Uncertainty Theories of Profit 205