Unit I Introduction to Managerial Economics: 
Definition, Nature and Scope of Managerial Economics–Demand Analysis: Demand Determinants, Law 
of Demand and its exceptions. 

Unit II Elasticity of Demand: 
Definition, Types, Measurement and Significance of Elasticity of Demand. Demand Forecasting, Factors 
governing demand forecasting, methods of demand forecasting (survey methods, statistical methods, 
expert opinion method, test marketing, controlled experiments, judgmental approach to demand 
forecasting) 

Unit III Theory of Production and Cost Analysis: 
Production Function – Isoquants and Isocosts, MRTS, Least Cost Combination of Inputs, CobbDouglas Production function, Laws of Returns, Internal and External Economies of Scale. 
Cost Analysis: Cost concepts, Opportunity cost, Fixed vs. Variable costs, Explicit costs Vs. Implicit 
costs, Out of pocket costs vs. Imputed costs. Break-even Analysis (BEA)-Determination of Break-Even 
Point (simple problems)- Managerial Significance and limitations of BEA. 

Unit IV Introduction to Markets & Pricing Policies: 
Market structures: Types of competition, Features of Perfect competition, Monopoly and Monopolistic 
Competition. Price-Output Determination in case of Perfect Competition and Monopoly. 
Objectives and Policies of Pricing- Methods of Pricing: Cost Plus Pricing, Marginal Cost Pricing, 
Sealed Bid Pricing, Going Rate Pricing, Limit Pricing, Market Skimming Pricing, Penetration Pricing, 
Two-Part Pricing, Block Pricing, Bundling Pricing, Peak Load Pricing, Cross Subsidization. 

Unit V Business & New Economic Environment: 
Characteristic features of Business, Features and evaluation of Sole Proprietorship, Partnership, Joint 
Stock Company, Public Enterprises and their types, Changing Business Environment in Postliberalization scenario. 

Unit VI Capital and Capital Budgeting: 
Capital and its significance, Types of Capital, Estimation of Fixed and Working capital requirements, 
Methods and sources of raising finance. 
Nature and scope of capital budgeting, features of capital budgeting proposals, Methods of Capital 
Budgeting: Payback Method, Accounting Rate of Return (ARR) and Net Present Value Method (simple 
problems) 
Unit VII Introduction to Financial Accounting:
Double-Entry Book Keeping, Journal, Ledger, Trial Balance- Final Accounts (Trading Account, Profit and 
Loss Account and Balance Sheet with simple adjustments). 

Unit VIII Financial Analysis through ratios:
Computation, Analysis and Interpretation of Liquidity Ratios (Current Ratio and quick ratio), Activity 
Ratios (Inventory turnover ratio and Debtor Turnover ratio), Capital structure Ratios (Debt- Equity ratio, 
Interest Coverage ratio), and Profitability ratios (Gross Profit Ratio, Net Profit ratio, Operating Ratio, P/E 
Ratio and EPS). 

TEXT BOOKS: 
1. Aryasri: Managerial Economics and Financial Analysis, 2/e, TMH, 2005. 
2. Varshney & Maheswari: Managerial Economics, Sultan Chand, 2003. 

REFERENCES: 
1. Ambrish Gupta, Financial Accounting for Management, Pearson Education, New Delhi. 
2. H. Craig Peterson & W. Cris Lewis, Managerial Economics, PHI, 4th Ed. 
3. Suma Damodaran, Managerial Economics, Oxford University Press. 
4. Lipsey & Chrystel, Economics, Oxford University Press. 
5. S. A. Siddiqui & A. S. Siddiqui, Managerial Economics & Financial Analysis, New age International 
Space Publications. 
6. Domnick Salvatore: Managerial Economics In a Global Economy, 4th Edition, Thomson.