Master of Management Studies (M.M.S) Managerial Economics Syllabus - Mumbai University 2026

Course objectives

• 1 To introduce key concepts of managerial economics and their role in firm-level decision-making.
• 2 To explain consumer behavior, utility theories, and firm cost-revenue dynamics for managerial applications.
• 3 To apply demand-supply analysis and forecasting tools to address business and economic challenges.
• 4 To analyze production, cost, and revenue decisions under varying market structures and competitive settings.
• 5 To evaluate firm strategies related to pricing, market behavior, and oligopolistic decision-making using economic models.

Course outcomes

• CO1: Understand the fundamental concepts and scope of managerial economics, the economic behaviour of firms, and decision-making processes
• CO2: Explain consumer behaviour, utility theories, and cost-revenue structures and their application in managerial decision-making
• CO3: Apply demand and supply analysis, elasticity, and forecasting techniques to solve business and economic problems
• CO4: Analyze various market structures and price-output decisions under different competitive environments
• CO5: Evaluate strategic pricing practices, firm objectives, and oligopolistic behavior using economic models and theories

Unit 1 CO1 · 3 hours

Introduction: Concept of Economy, Economics, Microeconomics, Macroeconomics. Nature and Scope of Managerial Economics, Managerial Economics and decision-making - The basic process of decision making; Concept of Firm, Market Objectives of Firm: Profit Maximization Model, Economist Theory of the Firm, Cyert and March’s Behavior Theory, Marris’ Growth

Unit 2 CO2 · 2 hours

Consumer Behaviour & Utility Analysis: Cardinal utility approach, equi-marginal utility principle, ordinal utility analysis.

Unit 3 CO2,CO3, CO4 · 4 hours

The Basics of Demand and Supply: Determinants of Demand / Supply, Law of Demand and Supply, Individual Demand / Supply and Market Demand /Supply, Exception to Law of Demand; Change in Demand / Supply; Market mechanism and price determination; Impact of Price Ceiling & Price Floor Demand forecasting: Significance of Demand forecasting, Various approaches to demand forecasting

Unit 4 CO3, CO4 · 3 hours

Elasticity of Demand and Supply: The concept of elasticity of demand, Types of elasticity of demand, factors affecting elasticity of demand. Elasticity of supply, factors determining elasticity of supply.

Unit 5 CO2,CO3, CO4 · 3 hours

Production Function: Production function, Law of Diminishing Marginal Returns (short run), Laws of Returns to scale (long run), Isoquant, Optimization analysis.

Unit 6 CO2,CO3, CO4 · 3 hours

Cost Analysis: Types of costs, Economic Cost and Business Cost, Estimation of cost function, Cost-output analysis - Short run cost curves & Long run Cost curves, Learning Curve, Economies of Scale; Break-Even Analysis; Determination of Break-even level, Breakeven chart

Unit 7 CO2,CO3, CO4 · 3 hours

Revenue Analysis: Revenue concept, Relation between price and revenue under perfect competition and imperfect competition.

Unit 8 CO4,CO5 · 3 hours

Market Structure 1 - Perfect and monopoly competition: Meaning of Markets and types of Market Structures Perfect Market: Short run equilibrium of the competitive firms, long run equilibrium of the firms and industry. Monopoly: Types & Sources of monopoly, Monopoly Power, monopoly equilibrium in short run, long run monopoly equilibrium, Monopoly Power Estimation, Monopoly wisdom. Price Discrimination: Forms of price discrimination, degree of discrimination, Dumping, economic effects of price discrimination, Other pricing strategies.

Unit 9 CO4,CO5 · 3 hours

Markets Structure 2 – Oligopoly Monopolistic Competition: Oligopoly - Kinked demand curve, Cournot’s Oligopoly model, Game Theory application in Oligopoly, Cartels Monopolistic Competition - Product differentiation, Selling cost & advertising outlay, equilibrium output and price under monopolistic competition

Unit 10 CO4,CO5 · 3 hours

Pricing Strategies: Various pricing strategies based on Market Structures and Market requirements

Text Books

• 1 Managerial Economics: Theory and applications: D.M.Mithani-Himalaya Publishing House.
• 2 Managerial Economics- Prof.A.K.Seth and Dr.Shalini Devi-International book house pvt.ltd
• 3 Managerial Economics- Suma damodaran-Oxford university press.
• 4 Managerial Economics- principles and worldwide applications- Dominick Salvatore- Oxford university press
• 5 Managerial Economics- Dr.S.L.Gupta-International book house pvt.ltd

Reference Books

• 1 Wilkinson, N. and Klaes M. 2018. An Introduction to Behavioral Economics (3 rd ed.)
• 2 Managerial Economics, Mote, Paul and Gupta, T M H, New Delhi.
• 3 Managerial Economics - Analysis, Problems and Cases, P.L. Mehta, Sultan Chand Sons, New Delhi.