**Business Economics - I**

**FYBCOM**

**Semester I**

**1. Introduction (10 Lec.)**

Scope and Importance of Business Economics - basic tools- Opportunity Cost principle- Incremental and Marginal Concepts. Basic economic relations - functional relations: equations- Total, Average and Marginal relations- use of Marginal analysis in decision making

The basics of market demand, market supply and equilibrium price- shifts in the demand and supply curves and equilibrium

**2. Demand Analysis (15 Lec.)**

Demand Function - Nature of demand curve under different markets

Meaning, significance, types and measurement of elasticity of demand (Price, income cross and promotional)- relationship between elasticity of demand and revenue concepts

Demand Estimation and Forecasting: Meaning and significance - methods of demand estimation : survey and statistical methods (numerical illustrations on trend analysis and simple linear regression)

**3. Supply and Production Decisions (10 Lec.)**

Production Function: Short run analysis with Law of Variable Proportions- Production function with two variable inputs- isoquants, ridge lines and least cost combination of inputs- Long run production function and Laws of Returns to Scale - expansion path - Economies and diseconomies of Scale and economies of scope

**4. Cost of Production (10 Lec.)**

Cost Concepts: Accounting cost and economic cost, implicit and explicit cost, social and private cost, historical cost and replacement cost, sunk cost and incremental cost -fixed and variable cost - total, average and marginal cost - Cost Output Relationship in the Short Run and Long Run (hypothetical numerical problems to be discussed)

Extensions of Cost Analysis: Cost reduction through experience - LAC and Learning Curve - Break even analysis (with business applications)

Add To Cart | No |
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ISBN-13 | 978-93-86187-84-0 |

AUTHOR | Dr. P. A. Johnson, A. D. Mascarenhas, Sonali Chatterjee |

YEAR | 2017 |

ED | Second |

PAGES | 240 |

SUBJECT | Business Economics - I FYBCOM Semester I |

LANGUANGE | English |