Course Credit: 3
Introduction: Economics, Wants and Scarcity, Macro and Micro Economics, Methods used in Microeconomics, Microeconomic Models, Basic Concepts used in Economics.
The Market Forces of Supply and Demand: Demand Schedule and Demand Curve, Law of Demand, Supply Schedule and Supply Curve, Law of Supply, Market Equilibrium, Government Intervention and its Effect, Consumer and Producer Surplus.
Theory of Consumer Behavior and Demand: Utility, Marginal and Total Utility, Indifference Curves, Budget Line, Utility Maximization, Income–Consumption Curve, Normal and Inferior Goods, Substitution Effect and Income Effect.
Elasticity and its Application: Price and Income Elasticity of Demand, Cross-Price Elasticity of Demand, Price Elasticity of Supply.
Production Theory and the Costs of Production: Costs, Total Revenue, Total Cost and Profit, Opportunity Cost, The Production Function, Total-Cost Curve, Fixed and Variable Costs, Average and Marginal Cost, Costs and Profit Maximization, Return to Scale, Monopoly, Oligopoly, Monopolistic Competition.
Externalities and Market Inefficiency: Negative and Positive Externalities, Public Policies toward Externalities, Private Solutions to Externalities, Public Goods and Common Resources, The Tragedy of the Commons, Property Rights.
Market Failure and Solutions: Information Asymmetry, Adverse Selection, Moral Hazard, Principal-Agent Problem.
Concepts of Macroeconomics: GDP, GNP, National Income Accounting, Inflation, Unemployment, Fiscal and Monetary Policies.
1. Managerial Economics in a Global Economy - Dominick Salvatore, Oxford University Press.
2. Managerial Economics – William F. Samuelson, Stephen G. Marks, Wiley.