Meaning and Nature of Managerial Economics: Managerial Economics and its useful nessto Engineers, Fundamental Concepts of Managerial Economics-Scarcity, Marginalism, Equimarginalism, Opportunity costs, Discounting, Time Perspective, Risk and Uncertainty, Profits, Case study method.
Consumer Behavior: Law of Demand, Determinants, Types of Demand; Elasticity of Demand (Price, Income and Cross-Elasticity); Demand Forecasting, Law of Supply and Concept of Equilibrium. (Theory questions and small numerical problem can be asked)
Theory of Production and Markets: Production Function, Law of Variable Proportion, ISO quant’s, Economics of Scale, Cost of Production (Types and their measurement), Concept of Opportunity Cost, Concept of Revenue, Cost- Output relationship, Break-Even Analysis, Price-Output determination under Perfect Competition and Monopoly (theory and problem scan be asked)
Capital Management: Significance, determination and estimation of fixed and working capital requirements, sources of capital, Introduction to capital budgeting, methods of payback and discounted cash flow methods with problems. (Theory questions and numerical problems on estimating working capital requirements and evaluation of capital budgeting opportunities can be asked)
Book-keeping: Principles and significance of double entry book keeping, Journal, Subsidiary books, Ledger accounts, Trial Balance, concept and preparation of Final Accounts with simple adjustments, Analysis and interpretation of Financial Statements through Ratios.
(Theory questions and numerical problems on preparation of final accounts, cashbook, petty cash book, bank reconciliation statement, calculation of some ratios)