Managerial Economics (22MBA26) VTU MBA Notes
Full Notes - Version I
Syllabus
Module - 1
Introduction: Managerial Economics: Meaning, Nature, Scope & Significance, Uses of Managerial Economics, Role and Responsibilities of Managerial Economist. Theory of the Firm: Firm and Industry, Objectives of the firm, alternate objectives of firm. Managerial theories: Baumol’s Model, Marris’s model of growth maximization, Williamson’s model of managerial discretion.
Module - 2
Demand Analysis Law of Demand, Exceptions to the Law of Demand, Elasticity of Demand , Classification of Price, Income &Cross elasticity, Promotional elasticity of demand. Uses of elasticity of demand for Managerial decision making, Measurement of elasticity of demand. Law of supply, Elasticity of supply. Demand forecasting: Meaning & Significance, Methods of demand forecasting. (Problems on Price elasticity of demand, and demand forecasting using Time-series method).
Module - 3
Cost Analysis & Production Analysis Concepts of Production, production function with one variable input – Law of Variable Proportion, Laws of returns to scale, Indifference Curves, ISO-Quants & ISO-Cost line, Economies of scale, Diseconomies of scale. Types of cost, Cost curves, Cost – Output Relationship in the short run and in the long run, Long- Run Average Cost ( LAC) curve Break Even Analysis–Meaning, Assumptions, Determination of BEA, Limitations, Margin of safety, Uses of BEA In Managerial decisions (Theory and simple Problems).
Module - 4
Market structure and Pricing Practices Perfect Competition: Features, Determination of price under perfect competition, Monopolistic Competition: Features, Pricing Under monopolistic competition, Product differentiation. Oligopoly: Features, Kinked demand Curve, Cartels, Price leadership. Monopoly: Features, Pricing under monopoly, Price Discrimination. Descriptive Pricing Approaches: Loss leader pricing, Peak Load pricing, Transfer pricing.
Module - 5
Indian Industrial Policy : New industrial policy 1991, Production Linked Incentive (PLI) scheme for Promoting manufacturing of Telecom & Networking Products in India, New economic initiatives proposed by Indian government for economic growth Private Sector-Growth- like Atma Nirbhar Bharath Abhiyan.
Module - 6
Future trends in Human Resource Management: Hybrid work model, Employee skill development, Internal mobility, Diversity and inclusion in workforce, People analytics, Employee well-being, Multi-generational workforces and All-in-One HR tools.