Business Economics (Theory)

Paper Code: 
24CBTM102
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will enable the students to learn fundamental economic theories and their impact on pricing, demand, supply, production and cost concepts.

 

Course Outcomes: 

Course Outcomes (COs):

Course

Learning outcomes

(at course level)

Learning and teaching strategies

Assessment

Strategies

Course Code

Course Title

24CBTM102

 

Business Economics

(Theory)

 

CO19: Develop an understanding of demand and supply function in determining market equilibrium and also evaluate the factors determining its Elasticity.

CO20: Analyze how consumers try to maximize their satisfaction by spending on different goods.

CO21: Evaluate the relationship between inputs used in production and the resulting outputs and costs.

CO22: Analyze and interpret various facets of and pricing under different market situations.

CO23: Evaluate factor market equilibrium dynamics.

CO24 Contribute effectively in course-specific interaction

Approach in teaching:

 

Interactive Hours using whiteboards, Questioning & Discussion, Reading assignments, Frequent or unannounced quizzes.

 

Learning activities for the students:

Self learning assignments, Effective questions,  presentation, Solving problems of unsolved questions

 

Class test, Semester end examinations, Quiz,  Assignments, Class interaction

 

12.00
Unit I: 

Demand, Supply and Market equilibrium: individual demand, market demand, individual supply, market supply, market equilibrium; Determinants of Demand; Elasticity of demand and supply: Price elasticity of demand, income elasticity of demand, cross price elasticity of demand, elasticity of supply.

12.00

TTheory of consumer behavior: cardinal utility theory, ordinal utility theory (indifference ccurves, budget line, price effect, substitution effect, income effect for normal, inferior and ggiffen goods), revealed preference theory.

 

 

12.00
Unit III: 

PProducer and optimal production choice: optimizing behavior in short run (geometry of product curves, law of diminishing margin productivity, three stages of pProduction), optimizing behavior in long run (isoquants, iso-cost line, optimal ccombination of resources) Costs and scale: Cost Concepts, Cost Curves: Short run & LLong run; economies of scale, economies of scope.

 

 

 

 

 

 

12.00
Unit IV: 

Theory of firm and market organization : perfect competition (basic features, short run equilibrium of firm/industry, long run equilibrium of firm/industry) ; monopoly (basic features, short run equilibrium, long run equilibrium, comparison with perfect competition, welfare cost of monopoly), price discrimination; monopolistic competition (basic features, demand and cost, short run equilibrium, long run equilibrium) ; oligopoly (Cournot’s model, kinked demand curve model, dominant price leadership model)

 

12.00
Unit V: 

Factor market: demand for a factor by a firm under marginal productivity theory (perfect competition in the product market, monopoly in the product market), market demand for a factor, supply of labour, market supply of labour, factor market equilibrium.

Essential Readings: 

1. Ahuja, H.L. , Business Economics, S.Chand & Company,New Delhi
2. Mithani,D.M., Fundamentals of Economics, Himalya Publishing House,Mumbai
3. Salvatore, Dominick, Micro Economics, Oxford University Press, New York
4. Seth, M. L., Principles of Economics, Laxmi Narain Agarwal, Agra

References: 

Suggested Reading:

  1. C. M. Choudhary : Business Economics
  2. Jhingal, M.L., Principles of Economics, Vikas Publishing House, New Delhi
  3. Mathur N.D. Managerial Economic. Shivam Book House, Jaipur
  4. Mukherjee,Debes, Business Economics Micro and Macro, New Central Book Agency, Calcutta

 

E-Resources:

  1. https://www.yourarticlelibrary.com/micro-economics
  2. https://www.investopedia.com/terms/m/microeconomics.asp
  3. https://www.slideshare.net/

 

Academic Year: 
2024-2025
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