A. Introduction to Business Economics
Meaning and scope of Business Economics Basic Problems of an Economy and Role of Price Mechanism.
B. Theory of Demand and Supply
Meaning and determinants of demand, Law of demand and Elasticity of demand ─ Price, income and cross elasticity
Theory of consumer’s behavior – Marshallian approach and Indifference curve approach
Meaning and determinants of supply, Law of supply and Elasticity of supply.
Demand Forecasting
C. Theory of Production and Cost
Meaning and Factors of production
Laws of Production – The Law of Variable proportions and Laws of Returns to Scale, Producer’s equilibrium
Concepts of Costs ─ Short-run and long-run costs, Average and marginal costs, Total, fixed and variable costs.
D. Price Determination in Different Markets
Various forms of markets – Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly
Price determination in these markets.
E. Business Cycles
Meaning
Phases
Features
Causes behind these Cycles