Definition-The market system - the consumer and the producer,
determination of the price in the market place - demand and supply schedules.
The concepts of elasticity and market equilibrium, Consumer equilibrium - Risk
and uncertainty.
UNIT II
The firm - profit maximization - Fixed and variable costs - Long run
and short run costs. Determination of output. The market structure - perfect
competition- monopoly and oligopoly
UNIT III
The monetary system - the market for money. Interest rates. The
capital market - banks, stock exchange - the fiscal system – public revenue and
public expenditure- taxes and deficit financing – monetary and fiscal policies.
UNIT IV
The economy - a concept of national income - aggregate demand -
supply and income determination. The multiplier and accelerator. Savings and
investment. The trade cycle and its control. International trade and the balance
of payments
UNIT V
Pricing policies - Objectives of pricing policies, pricing decisions profit
polices - aims – alternative profit policies - profit Maximization for long run.
Text Books
(i) Samuelson, and R. Nordhus, 1989, Economics. Tata McGraw Hill.
(ii) Joel Dean, 1993, Managerial Economics, Prentice Hall of India, New Delhi.