After completing this course participants must be able to:

- Understand the key role of managers in decision making
- Analyze firm’s decision making process
- Examine how a firm achieves its aims and objectives most efficiently
- Understand functioning of different markets
- Meet the challenges of the risky businesses
- Formulate price strategies in different markets
- Become confident in making managerial decisions

- Managerial Economics and Business Strategy byISBN: 9781259290619Publication Date: 2016This ninth edition of Managerial Economics and Business Strategy has been revised to include updated examples and problems, but it retains all of the basic content that made previous editions a success.
- Managerial Economics in a Global Economy byCall Number: 338.5024658 SALISBN: 0030311586Publication Date: 2001
- Managerial economics byISBN: 8177583867

1 ,2: The nature and scope of Managerial Economics.

• Management Problem

• Effective Management

• Theory of firm

• The objective of the Firm

• Constrains faced by a firm

• Business vs. Economic profit

• Theories of Economic profit

3,4 Advanced Demand Analysis

• The Market Demand Function

• Total and Marginal Revenue

• Sensitivity analysis

• Computation of Price, Income and Cross price Elasticity of Demand by two Methods

• Uses and Application of Price, Income and Cross-Price Elasticity of demand

• Some other Demand Elasticity

5 Advanced Demand Analysis

• Price elasticity, Marginal Revenue and Total Revenue

• Optimal Pricing Policy under given price elasticity

6 Demand estimation by Regression Analysis

• Simple Linear and Multiple Linear Regression Models

• Significance of estimated coefficients and model

• Use of R2

7 Demand Forecasting

• Quantitative Methods for Forecasting

• Best Forecasts

• Forecasting power of a Regression Model

9,10 Economic Optimization

• Mathematical tools for derivatives

• Unconstrained vs. Constrained Optimization

• The substitution vs. the Lagrange Methods of Optimization

11,12 Production Analysis

• Production Function

• Total, Marginal and average Products in case of single and two variable inputs

• Marginal Revenue Product and Optimal Employment of Inputs

• Returns to scale vs. Returns to factor

13 Cost Analysis

• Explicit and Implicit Costs

• Incremental and Sunk Costs

• Short-Run vs. Long-Run Costs

• Economies of Scale and Economies of Scope

• Learning Curves

• Breakeven Analysis

• Degree of Operating Leverage

14 Pricing Practices

• Markup Pricing and profit maximization

• Mark up on costs and price

• Optimal markup on price and cost

• Price discrimination

15 Risk Analysis

• Economics Risk vs. Uncertainty

• Various types of risk

• Expected Profit of a Project

• Absolute vs. Relative Risk

• Beta as Measure of Risk

• Managerial Applications