Tiêu đề MCO 21 Santosh Sir Notes @UpToDateWithUpdates.pdf ✅

SANTOSH SIR CLASSES 1 Contents Units Topics Pg. No. 1 Scope of Managerial Economics 2 2 The Firm, Stakeholders 6 3 Basic Concepts & Techniques 10 4 Demand Concepts & Analysis 12 5 Demand Elasticity 15 6 Demand Estimation & Forecasting 17 7 Production Function 19 8 Short Run Cost Analysis 24 9 Long Run Cost Analysis 28 10 Market Structure & Barriers to Entry 30 11 Pricing under Perfect Competition & Monopoly 32 12 Pricing under Monopolistic & Oligopolistic 34 13 Pricing Strategies 37
SANTOSH SIR CLASSES 2 Unit-1: Scope of Managerial Economics Definition of Managerial Economics. • ‘Managerial economics’ is concerned with the application of economic principles and methodologies to the decision-making process within the firm or organisation under the conditions of uncertainty”. • Spencer and Siegelman define it as “The integration of economic theory with business practices for the purpose of facilitating decision making and forward planning by management.” • According to Hailstones and Rothwell, “Managerial economics is the application of economic theory and analysis to practice of business firms and other institutions.” Basic features of managerial economics a) It is concerned with “decision making of an economic nature.” b) It is “micro-economic” in character. c) It largely uses that body of economic concepts and principles, which is known as “theory of the firm.” d) It is “goal oriented and prescriptive” e) Managerial economics is both “conceptual and metrical”. It includes theory with measurement. Is Managerial Economics a Science or an art? Managerial Economics as a Science: Managerial Economics is a science because: • Science is a Systematic body of Knowledge. It is based on the methodical observation. • Managerial economics is also a science of making decisions with regard to scarce resources with alternative applications. • It is a body of knowledge that determines or observes the internal and external environment for decision making. Managerial Economics as an Art: Managerial economics is an art because: • Art refers to skill, talent, ability of a person in doing a particular work. • Managerial economist is required to have an art of utilising his capability, knowledge and understanding to achieve the goals of the organization. • Managerial economist should have an art to put in practice his theoretical knowledge.