Business Economics – Part I – Revised FYBBI Syllabus 2016
Modules at a Glance
| Sr. No. | Modules | No. of Lectures |
| 1 | Introduction | 10 |
| 2 | Demand Analysis | 10 |
| 3 | Supply and Production Decisions and Cost of Production | 15 |
| 4 | Market structure: Perfect competition and Monopoly and Pricing and Output Decisions under Imperfect Competition | 15 |
| 5 | Pricing Practices | 10 |
| Total | 60 | |
Business Economics – Part I – Syllabus Overview
| Sr. No. | Modules / Units |
| 1 | Introduction |
| 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 |
| 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 and Cost of Production |
| 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.
Cost concepts: Accounting cost and economic cost, implicit and explicit 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), LAC and Learning curve – Break even analysis (with business applications) |
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| 4 | Market structure: Perfect competition and Monopoly and Pricing and Output Decisions under Imperfect Competition |
| Short run and long run equilibrium of a competitive firm and of industry – monopoly – short run and long- run equilibrium of a firm under Monopoly
Monopolistic competition: Equilibrium of a firm under monopolistic competition, debate over role of advertising. (topics to be taught using case studies from real life examples) Oligopolistic markets: key attributes of oligopoly – Collusive and non-collusive oligopoly market – Price rigidity – Cartels and price leadership models (with practical examples) |
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| 5 | Pricing Practices |
| Cost oriented pricing methods: cost – plus (full cost) pricing, marginal cost pricing, Mark up pricing, discriminating pricing, multiple – product pricing – transfer pricing
(case studies on how pricing methods are used in business world) |
Reference books for subject: Business Economics – Part I
| Business Economics-I |
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