Definition of economics - nature and scope of economic science - nature and scope of managerial economics - basic terms and concepts - goods - utility - value - wealth - factors of production – land - its peculiarities - labour - economies of large and small scale - consumption -wants – its characteristics and classification - law of diminishing marginal utility
Demand - demand schedule - demand curve - law of demand - elasticity of demand - types of elasticity - factors determining elasticity - measurement - its significance - supply – supply schedule - supply curve - law of supply - elasticity of supply - market price and normal price – perfect competition - monopoly – monopolistic competition.
Forms of business - proprietorship - partnership - joint stock company - cooperative organization - state enterprise - mixed economy - money and banking - banking - kinds - commercial banks - central banking functions - control of credit - monetary policy - credit instrument.
Types of financing - Short term borrowing - Long term borrowing - Internal generation of funds - External commercial borrowings - Assistance from government budgeting support Profit and Loss account - Funds flow statement – Case Study on Inflation
Types of costing – traditional costing approach - activity base costing - Fixed Cost variable cost – marginal cost – cost output relationship in the short run and in long run pricing practice– full cost pricing – marginal cost pricing – going rate pricing – bid pricing – pricing for a rate of return – appraising project profitability –internal rate of return – payback period – net present value. Break even analysis - basic assumptions – break even chart – managerial uses of break-even analysis.
Reference Book:
1. Barthwal R.R., Industrial Economics - An Introductory Text Book, New Age, 2007 2. R.Paneerselvam, Engineering Economics, PHI Learning Private limited, 2013 3. R.Kesavan, C.Elanchezhian, T.Sundar Selwyn, Engineering Economics and Financial Accounting, Lakshmi Publications (P) LTD, 2012 4. Tahir Hussain, Engineering Economics, University science Press, 2010 5. David Whitman, Ronald E. Terry, Fundamentals of Engineering Economics and Decision Analysis, Morgan & Claypool Publishers, 2012
Text Book:
1. John A.White, Kenneth E Case, David B Pratt, Principles of Engineering Economic Analysis, Fifth edition, Wiley India Edition., 2015 2. D.M.Mithani, Suresh Chandra Das, Engineering Economic and Costing, Himalaya publishing House, 2017
