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.