Managerial economics / D N Dwivedi

CONTENTS

Part- I: INTRODUCTION

1 Nature and scope of managerial economics

1.2 Introduction
1.2 What is economics?
1.3 What is managerial economics?
1.4 Why do managers need to know economics?
1.5 Application of economics to business decisions: an example.

2 Objectives of business firms

2.1 Introduction
2.2 profit as business objective
2.3 Theories of profit: the economists' perception and sources of profit
2.4 Problems in profit measurement
2.5 Profit maximization as a business objective

3 Some fundamental concepts used in business decisions

3.1 Introduction
3.2 The opportunity cost and decision rule
3.3 Marginal principle and decision rule
3.4 Incremental principle and decision rule
3.5 Contribution analysis

4 Basic tools for economic analysis and optimization techniques

4.1 Introduction
4.2 Functional relationship between economics and variables
4.3 The function
4.4 Concept of slope and its use in economic analysis
4.5 Differential calculus

5 Methods of estimating function: the regression technique

5.1 Introduction
5.2 Nature of the managerial problem: an example
5.3 Methods of formulating a function
5.4 Estimating a linear function: the regression analysis
5.5 The multivariate regression


Part-II: ANALYSIS OF DEMAND AND DEMAND FORECASTING


6 Basics of the market system and market equilibrium

6.1 Market systems: an overview
6.2 The concept of market
6.3 Demand side of the market
6.4 Supply side of the market
6.5 Market equilibrium: equilibrium of demand and supply

7 Analysis of consumer demand

7.1 Introduction
7.2 Meaning of demand
7.3 Basis of the consumer demand: utility
7.4 Law of diminishing marginal utility
7.5 Cardinal and ordinal concepts of utility

8 Analysis of market demand and demand elasticities

8.1 Introduction
8.2 Analysis of market demand
8.3 Demand function
8.4 Elasticities of demand
8.5 Use of elasticities in business decision-making

9 Demand forecasting

9.1 Introduction
9.2 Why demand forecasting
9.3 Steps in demand forecasting
9.4 Techniques of demand forecasting
9.5 Concluding remarks

Part-III: PRODUCTION AND COST ANALYSIS

10 Theory of production

10.1 Introduction
10.2 Some basic concepts
10.3 Production function
10.4 Short-run laws of production: production with one variable input
10.5 Long-run laws of production: production wit two variable inputs

11 Theory of cost and break-even analysis

11.1 Introduction
11.2 Cost concepts
11.3 Theory of cost: the cost-output relations
11.4 Economies and diseconomies of scale
11.5 Some empirical cost function estimates

12 Linear programming

12.1 Mathematical aid to business decisions
12.2 Some basic concepts used in linear programming
12.3 Assumption of linear programming
12.4 Application of linear programming technique
12.5 Graphical method of solving LP problems

Part-IV: MARKET STRUCTURE, PRICINGTHEORY AND PRACTICES

13 Market structure and pricing decision

13.1 Introduction
13.2 Market structure and degree of competition
13.3 Market structure and pricing decision
13.4 Price determination under perfect competition
13.5 Price determination under pure monopoly

14 Alternative theories of the firm

14.1 Introduction
14.2 Baumol's theory of sales revenue maximization
14.3 Marris's theory of growth rate maximization
14.4 Maximization of managerial utility function: Williamson's model
14.5 Behavioral model of cyert and march

15 Pricing strategies and practices

15.1 Introduction
15.2 Cost-plus pricing
15.3 Multiple product pricing
15.4 Pricing in life-cycle of a product
15.5 Pricing in relation to established products

Part-V: CAPITAL BUDGETING AND INVESTMENT DECISIONS

16 Capital budgeting and investment under certainty

16.1 Introduction
16.2 Prerequisites of capital budgeting
16.3 Determining the optimum level of capital
16.4 Investment decisions under certainty
16.5 Sources and cost of capital

17 Investment decision under risk and uncertainty

17.1 Introduction
17.2 Concept of risk and uncertainty
17.3 Investment decisions under risk
17.4 Investment decisions under uncertainty

Part-VI: MACROECONOMIC ASPECTS OF MANAGERIAL ECONOMICS


18 Macroeconomics: meaning, nature and scope

18.1 Introduction
18.2 What is macroeconomics?
18.3 Nature of macroeconomics
18.4 Importance of macroeconomics
18.5 Origin and growth of microeconomics

19 Circular flow model of the economy

19.1 Introduction
19.2 Circular flows in a simple economy model
19.3 Circular flows of product and money in a three-sector economy
19.4 Circular flows in a four-sector model: a model with foreign sector

20 National income: concept and measurement

20.1 Some basic concepts
20.2 Measures of national income
20.3 Methods of measuring national income
20.4 Choice of methods
20.5 Measurement of national income in India

21 Theory of national income determination

21.1 Keynesian theory of national income determination
21.2 Determination of national income: two-sector model
21.3 Consumption function
21.4 Derivation of saving function
21.5 Two-sector model of national income determination

22 Income determination with government and foreign trade

22.1 Income determination in three-sector model: a model with government
22.2 Income determination in four-sector model: model with foreign trade

23 Modern theories of economic growth

23.1 Introduction
23.2 Meaning of economic growth
23.3 Determinants of economic growth
23.4 Theories of economic growth

24 Business cycle and stabilization

24.1 Introduction
24.2 Phases of business cycle
24.3 Theories of business cycle
24.4 Economic stabilization policies

25 Inflation: meaning, theories and control measures

25.1 Introduction
25.2 Definition of inflation
25.3 Methods of measuring inflation
25.4 Kinds of inflation
25.5 Effects of inflation

Part-VII: INTERNATIONAL ECONOMIC LINKAGES

26 Changing international business environment

26.1 Introduction
26.2 The consequences of globalization
26.3 Managerial implications of globalization

27 Theory of international trade

27.1 Introduction
27.2 Basis of foreign trade
27.3 Adam Smith's theory of absolute advantage
27.4 Ricardian theory of comparative advantage
27.5 Heckscher-ohlin theory of trade

28 Foreign trade policy: free trade vs trade control

28.1 Introduction
28.2 Free trade policy
28.3 Trade protection policy
28.4 India's foreign trade policy

29 Determination of foreign exchange rate

29.1 Introduction
29.2 Foreign exchange market and its function
29.3 Determination of exchange rate in a free market
29.4 Purchasing power parity (ppp) theory of exchange rate
29.5 The fixed exchange rate system

30 Balance of payment: meaning, disequilibrium and adjustment

30.1 Introduction
30.2 The balance of payments
30.3 Balance of payments accounts
30.4 Disequilibrium in balance of payments
30.5 Causes and kinds of BOP disequilibrium

31 International monetary system

30.1 Introduction
30.2 Evolution of international monetary system
30.3 IMF and the world monetary system
30.4 Collapse of the IMF system and reforms
30.5 International payment mechanism

Part-VIII: GOVERNMENT AND THE PRIVATE BUSINESS

32 Government's role in the economy

32.1 Introduction
32.2 Short comings of the market mechanism
32.3 Government's role in different economic systems
32.4 Government's role in private business

33 Fiscal policy: taxation and private business

33.1 Fiscal policy: definition and objectives
33.2 India's taxation policy
33.3 Taxation policy reform
33.4 Income taxation and the private business
33.5 Corporate income taxation, business saving and investment

34 Monetary policy

34.1 Introduction
34.2 Meaning and scope of monetary policy
34.3 Instruments of monetary policy
34.4 The limitations of monetary policy

35 Industrial policy of India

35.1 Why industrial policy
35.2 Industrial policy of India
35.3 Joint sector

36 Some economic legislations

36.1 Introduction
36.2 Monopolies and restrictive trade practices(MRTP) act
36.3 Industrial relations and industrial disputes act
36.4 Foreign exchange regulation act (FERA)

37 Some responsibility of private business

37.1 Introduction
37.2 What are the social responsibilities of businessmen?
37.3 Do businessmen have social responsibilities?
37.4 The Indian scene