Business Economics is economics applied to business. It is concerned with the application of economic concepts and economic analysis to the problems of formulating rational managerial decisions. Economics of Business is designed to provide a solid foundation of economic understanding for use in managerial decision making. Businessmen and women have to develop special skills to tackle their problems. The methods of reasoning, concepts, tools and techniques provided by economics of business aid the process of business decision-making. Economics of Business focuses on the economics of the managerial decision process. It uses economic intuition as a practical tool for problem solving.
After studying this course, the students will be able to:
Ø Understand the scope and significance of business economics.
Ø Analyze the features of firms and its environment.
Ø Assess the business objectives and business strategy of firms.
Ø Explain production and cost analysis.
Ø Explain the significance of demand sensitivity, demand and economic forecasting for business
Ø Assess the major market structures
Ø Examine the pricing decisions and market failure
Ø Explain the cost-benefit analysis of investment appraisal.
Ø Analyze the growth and scope of large firms industrial policy and role of small firms.
Ø Analyze the PEST and TASK analysis.
Ø An overview of Business Economics
Ø Features of firms and its environment.
Ø Production and cost analysis.
Ø Objectives and strategies of business firms
Ø Demand sensitivity and demand forecasting for business
Ø Pricing decisions and market failure
Ø Cost-benefit analysis
Ø Role of large firms and the scale of production
Ø Industrial policy and role of small firms
Ø Pest and task analysis
Ø Business forecasting
Howard Davies / Lan Pun-Lee (2001) Managerial Economics, 3rd edition, Financial Times/Prentic Hall, Londong, U. K.
Craig H. Peterson / W. Cris Lewis, (1997) Managerial Economics, 7th edition, Prentice-Hall of India Privates Ltd., New Delhi, India.
Dominick Salvatore (1996) Managerial Economics in a Global Economy, 3rd edition., MC Graw-Hill, Inc, New York, USA.
Alan Griffiths / Stuart Wall (1999) Applied Economics, 8th edition, Pearson education, Harlow, U. K.
Mark Hirschey / James L. Pappas (1995) Fundamentals of Managerial Economics, 5th Edition, Dryden Press, New York, USA.
Edwin Mansfield (1996) Managerial Economics, Theory, Applications and Cases, 3rd edition, W. W.Norton and Co., New York, U. S. A.
Win Hornby (1997) Business Economics, Longman, London, U. K.
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· Working Together Educational CD professionally developed by Crisp Learning Resources, USA.
· The Global Business Game video tape developed by Joseph Wolfe
· Economics video tape developed by David Begg
Virtual Library Sources:
There are around 4000 journals, articles, full-text search, newspaper articles around the world, and case studies available in the following E-library resources
Internet related Sources:
Economics Power Point Slides
LAST DATE OF SUBMISSION- 15 TH JUNE 2005.
ATTEMPT ANY ONE QUESTION.
ANSWER SHOULD NOT EXCEED 500 WORDS.
WEIGHTAGE: 100 %
1. Suppose compact disk producers find that they are selling more disks at the same price than they did two years ago. Is this a shift of demand curve or a movement along the curve? Explain. Suggest at least four reasons, why this rise in sales at an unchanged price might occur?
2. Define Unemployment? What are the different kinds of Unemployment? How does unemployment affect the economy of a country? Please explain briefly?