Economics for Managerial Decisions is an integral part of the business curriculum, which provides good understanding of how basic concepts of economics can be used in analysing business environment and facilitating decision-making in regard to allocation of scarce resources. It is broadly concerned with microeconomic principles involved and the problems encountered in making economic decisions in business management. It seeks to provide an analytical framework and understanding of economic behaviour with a sharp logical thinking and useful techniques for decision-making from an economic view point. Business Economics, Economics for Business and Management, Economics of the Firm or Managerial Economics are synonyms of courses commonly designed for M.Com., MBA, CA, ICWA and CS examinations. This book intends to cater to such common needs as per the NEP 2020 on the subject taught in Commerce and Management Faculties of the University and the Institutes.
The book is oriented to business and management and intends to explain the application of economic principles to managerial/business decision-making. Diagrams, mathematical computations and illustrations are provided in the book for enhancing the understanding of economic concepts and their applications in decision-making. All relevant mathematical tools introduced in one chapter and exposed in the text intend to provide greater insight and clarity into economic analysis of the business problems. The subject matter is presented in a simple and lucid manner so as to make the study more comprehensible and readily intelligible to all concerned.
The contents of the book are arranged in virtually Seven parts. Part I introduces the Nature and Scope of Economics for Managerial Decisions, Business Objective Models and Basic Concepts and Basic Mathematical Tools for Economic Analysis. Part II deals with Demand Distinctions and Elasticity and Demand Forecasting in three chapters. Part III is devoted to the analysis of Production Function and Optimal Input Mix and Cost and Volume Relations. Part IV examines the Pricing under Different Markets, Pricing Policy Decisions Pricing Methods and Advertising in different chapters. Part V elucidates the Capital Budgeting Appraisal for Investment and Cost of Capital in respective chapters. Part VI has examined the Profit: Nature and Determinant and Policies and Profit Planning - CVP Analysis and Part VIII has elaborated the Linear Programming Model - Piramal and Dual, which are being increasingly used in business decisions.
The present volume is intended to serve as reference/text books for postgraduate students in the Commerce and Management faculties. Besides it will be useful to the students of professional courses like Chartered Accountants, Cost and Works Accountants, Chartered Secretaries, Chartered Financial Analysts, and also to the candidates preparing for the various competitive examinations.
1. Nature and Scope of Managerial Economics
2. Business Objective Models and Concepts
3. Mathematical Tools for Decision-making
4. Consumption and Derivation of Demand Theorem
5. Demand Distinctions and Elasticity of Demand
6. Demand Forecasting
7. Production Function and Analysis of Production Behaviour
8. Linear Programming
9. Cost and Volume Relations
10. Cost Control
11. Product Pricing under Different Markets: Perfect Competition and Monopoly
12. Product Pricing under Different Markets: Duopoly, Oligopoly and Monopolistic Competition
13. Pricing Policies
14. Pricing Methods: Cost-Plus, Incremental, Pioneer and Cyclical Pricing
15. Pricing Methods: Product Line and Differential Pricing and Price Forecasting
16. Advertising and Sales
17. Capital Budgeting
18. Capital Investment Appraisal
19. Cost of Capital
20. Profit: Determinants and Policies
21. Profit Planning: CVP Analysis
22. National Income: Concepts, Measurements and Equilibrium
23. Optimum National Income: Determinants and Fiscal Policy Measures
24. National Income Distribution and Inequalities
25. Business Cycles: Phases, Theories and Measures for Stabilisation
26. Employment Theories and Measures for Full Employment
27. Economic Systems: Capitalism, Socialism and Mixed