Economics

Unit - 1 Introduction to Business Economics

Concepts and precepts; Goods, Services, utility, value, wealth, marginalism, time perspective, stock
and flow variables equilibrium, Basic principles of Economics, Basic problems of an economy.

Unit - 2 Demand and Supply Analysis

Meaning of demand, law of demand, Determinants of Demand,
Increase and Decrease in demand, Exceptions to the law of demand, Individual and Market demand;
Meaning of supply, Law of supply, Increase and Decrease in Supply, Determinants of supply"
Exceptions to the Law of supply, Equilibrium; Elasticity concept; Perfect elasticity, Perfect
Inelasticity, Relative Elasticity, Relative Inelasticity.

Unit - 3 Elasticity of demand

Price, Income, Cross and Promotional elasticity of demand; Elasticity of
supply: Price, Income and Cross elasticity of Supply; Elasticity and Implications for total Revenue
determinants of Elasticity, simple numerical problems to be solved.

Unit - 4 Production and cost Analysis

What are costs; Costs as opportunity costs, Accounting vs
Economic costs, Accounting vs Economic profit; Production functions in the short run and in the
long run producer's equilibrium; Types of costs: Variable and fixed costs, short run and long run
costs, Average cost, Marginal Cost; Diminishing Returns and Marginal cost; Production and costs in
the long run; Economics and Diseconomies of Scale; Revenue concepts, total revenue, Average
revenue and Marginal Revenue.

Unit - 5 Market structure and Business Decisions

Distinguishing characteristics between market forms;
Perfect competition; Monopoly; Monopolistic competition; Oligopoly; Short run decisions of a firm
to shut down; Long run decision of the firm to exit; Practical application of different market forms.