10561nam a2200109Ia 4500 2055 2055 978-8180549601 MEHTA, PL MANAGERIAL ECONOMICS ANALYSIS, PROBLEMS AND CASES SULTAN CHAND & SONS MEANING AND SCOPE Meaning and Nature of Managerial Economics . Chief Characteristics of Manage-rial Economics.Significance of Managerial Economics. Scope of Managerial Economics . Role of A Managerial Economist . Responsibility of Managerial Economist . FUNDAMENTAL CONCEPTS, MODELS AND METHODS The Fundamental Concept . Concept of Incremental Reasoning • Incremental Reasoning and Marginal Analysis—A Comparison • Concept of Opportunity Cost • Incremental Cost and Opportunity Cost—A Comparison • Concept of Contribution • Time Perspective • The Discounting Principle • Risk and Uncertainty • The Models . Meaning of Economic Models • Types of Models Used for Decision-making • Symbolic Models • Case Study Method . Meaning • Nature of Case Studies • Analysing a Case • How to Analyse a Case in Managerial Economics? Case Example: Moghul Room • Conducting Case Discussions • Techniques of Case Discussions • Usefulness of Case Study Method • Limitations of Case Study Method • . ALTERNATIVE OBJECTIVES OF THE FIRM (Economic, Managerial and Behavioural Theories) Theory of Firm (or Model or Profit Maximisation) .Managerial Theories of the Firm . Baumol's Sales Revenue Maximising Model • Managerial Utility Models (Berle-Means-Galbraith Model of `Corporate Power Structure'; .. Williamson 's Model of 'Managerial Discretion') • Growth Maximisation Models (Baumol's Model of Growth Maximisation; Morris ' Model of Managerial Enterprise'; Penrose Theory of the Firm) • Behavioural Theories of the Firm.Simon's `Satisficing' Model • Cyert and March's Behavioural Theory of the Firm . THEORY OF CONSUMER CHOICE Cardinal Approach to Consumer Equilibrium 54 Measurement of Utility • The Law of Diminishing Marginal Utility • Hypothesis of Utility Maximisation • The Law of Equi-marginal Utility • Limitations of UtilityAnalysis • The Ordinal Utility Theory: Indifference Curve Approach . What is an Indifference Curve? • The Budget Line or Iso-Expenditure Line • Consumer's Equilibrium • Income Effect and Engels Curves • Price Effect • Income Effect and Substitution Effect of a Price Change (Normal Good; Inferior Good; Given Good Cases) • Derivation of the Demand Curve Using Indifference Curve Technique . The Attribute Approach to Consumer Choice . Graphi-cal Representation of Product Attributes • The Efficiency Frontier • Consumer's Preference Pattern • Consumer's Equilibrium • The Revealed Preference Hypothesis . Assumptions • The Revealed Preference Axiom • Derivation of Law of Demand • Critique of Revealed Preference • ConsumerSurplus Consumer Surplus and Demand Curve • Applying Consumer Surplus DEMAND ANALYSIS Meaning of Demand . Determinants of Demand . Demand Function . Individual Demand Function • Market Demand Function • The Law of Demand . Individual and Market Demand Schedules • Individual and Market Demand Curves • Why do Demand Curves Slope Downwards? • Forms of Demand Function • Exceptions to Law of Demand • Change in Demand Versus Change in Quantity Demanded . Revenue Concepts . Nature of Demand . Derived Demand and Autonomous Demand • Demand for Producers' Goods and Consumers' Goods • Demand for Durable Goods and Non-durable Goods • Industry Demand and Firms (or Company) Demand • Total Demand and Market Segment Demand • Short run Demand and Long run Demand • . ELASTICITY OF DEMAND AND DEMAND ESTIMATION Elasticity of Demand. Arc and Point Elasticity Measurements .Price Elastic-ity of Demand. Meaning • Types of Price Elasticity • Measurement of Price Elasticity • Relationship Between Price Elasticity of Demand, Average Revenue and Marginal Revenue • Determinants of Price Elasticity of Demand • Income Elasticity of Demand .Meaning • Types of Income Elasticity • Relation Between Income Elasticity of Goods • Distinction Between Income Elasticity of Demand and 'income Sensitivity of Demand" • Relation Between Income Elasticity of Demand and Propensity to Consume • Uses of Income Elasticity • Cross Elasticity of Demand . Promotional (or, Advertising) Elasticity of Demand. Meaning • Factors Influencing Advertising Elasticity of Demand • Demand Elasticity of Substitution .Meaning • Relation Between Price Elasticity, Income Elasticity and Substitution Elasticity • Types of Substitution Elasticity • Elasticity of Price Expectations . Significance of the Concept of Elasticity of Demand. Demand Estimation . Market Experiment Method • Survey of Consumers' Intentions • Regression Analysis . DEMAND FORCASTING—AN INTRODUCTION Introduction .Purpose of Forecasting Demand. Steps Involved In Forecasting. Determining Scope of Forecasting Exercise . Determinants of Demand Forecast .Methods of Demand Forecasting . Criteria for the Choice of a Good Forecasting . METHODS OF DEMAND FORECASTING Demand Forecasting of Established Products . COST OF PRODUCTION Cost and Managerial Decision-making . Types of Costs . Theory of Cost: Cost-Output Function .Determinants of Cost Function • Relationship Between Production and Cost • Short Run Cost Function. Long Run Cost Function . Relation Between Short Run and Long Run Cost Curves .Why A Long Run Average Cost Curve is Likely To Be L-shaped?. The Analysis of Economies of Scale .Internal Economies • External Economies • Diseconomies of Scale • Concept of Learning Curves .Economies of Scope . Estimating Cost . Methods of Estimating Cost Functions • Problems in Estimating Cost Functions • Short Run Cost Functions: Some Empirical Studies . Do Shapes of Average and Marginal Cost Curves Differ in Theory and Practice? . Estimating Long Run Cost Function . Some Empirical Estimates of Long Run Cost Function. Survivor Technique . Engineering Estimation of Cost Function. Summary . Important Concepts . Easystart Batteries .Case Problem.Take the Bull by the Horn ..Cost Elasticity; Appendix B: Cost Control and Cost Reduction: Cost Control . Cost Reduction . Main Areas of Cost Control . Tools of Cost Control . Budgetary Control • Standard Costing • Ratio Analysis • Some Other Techniques of Cost Control. INVENTORY COST MANAGEMENT Meaning of Inventory . Types of Inventory . Motives of Holding Inventory . Market Structure and Inventories.Nature of Product and Inventories .Cost of Holding Inventories . Inventory Control . Methods of Inventory Control and Management . Economic Order Quantity (EOQ) Approach: Graphical Method; Tabular Method; Algebraic Method • The ABC Analy-sis of Inventory Control • Concluding Remarks . THEORY OF PRICING—PERFECT COMPETITION AND MONOPOLY: THE LIMITING CASES The Market and The Criteria for Market Classification .Equilibrium of a Firm. Perfect Competition . Main Features • Equilibrium of a Firm • 'Shutdown Point' for a Perfectly Competitive Firm • Supply Curve • Price Determination in Perfectly Competitive Industry • The Market's Long Run Supply Curve • Consequences of Perfect Competition • Effective or Workable Competition and Potential Competition • Pure Monopoly . Main Features • Causes of Origin of Monopoly • Equilibrium of Monopoly Firm • Degree of Monopoly or Concentration of Economic Power • Multiplant Monopoly • Discriminating Monopoly. Meaning • Conditions When Price Discrimination is Possible • Degrees of Price Discrimination • Objectives of Differential Pricing • Price-Output Determination under Discriminating Monopoly THEORY OF PRICING — MONOPOLISTIC COMPETITION, DUOPOLY AND OLIGOPOLY Monopolistic Competition 301 Meaning and Main Features Price Determination of a Firm • "Group" Equilibrium • Excess Capacity and Monopolistic competition • Non price Competition: Product Differentiation and Advertising • Selling Costs: Their Influence on Equilibrium of the Firm • Evaluation of Monopolistic Competition • Duopoly . Cournot's Model of Duopoly • Reaction Curves Approach • Chamberlain's Model of Duopoly • Oligopoly . Main Features • Classifying Oligopoly Situations • Differentiated Oligopoly • Pricing Under Perfect Collusion • Non-Collusive Oligopoly: Case of Prisoners' Dilemma • price Leadership Model: Case of Imperfect Collusion • Sweezy's 'Kinky Demand' Model and Stickiness of Prices • Summary . Important Concepts .Case Problem I: Countryside Venture .• Case Problem . PRICING PRACTICES AND STRATEGIES Some Popular Pricing Practices. Cost-Oriented Pricing . Cost-Plus Pricing • Marginal (Direct) Cost Pricing • Rate of Return (or Target) Pricing • Competition-oriented Pricing . Going-rate Pricing • Loss Leaders • Trade Association Pricing • Customary Pricing • Price Leadership • Cyclical Pricing • Imitative Pricing and Suggested Prices • Turnover and Pricing • Pricing Based on other Economic Considerations . Administered Prices • Dual Pricing • Price Discrimination or Differential Pricing • Pricing Strategies . Stay-out Pricing • Price Lining • Psychological Pricing • Limit Pricing • Some Other Strategies • Pricing In Large Enterprises . Pricing Approach In Small Business . Differences in Pricing Practices of Small Manufacturers and Retailers . Resale Price Maintenance . The Pricing Process . ADVANCED TOPICS IN PRICING THEORY Peak-load Pricing . Pricing Over The Life Cycle of A Product .Pioneer Pricing : Skimming Price; Penetration Price • Pricing At the Maturity Stage of the Product • Public Utility Rate Regulation. Multi-product Pricing . Introduction • Product Line Pricing • Product-Line Balancing: General Considerations • Special Considerations in Product Line Pricing • Pricing Repair Parts/Spare Parts • Pricing Leases and Licenses • Special Order Pricing • Transfer Pricing .Transfer 'Pricing of a Product with: A Competitive External Market; No External Market; Imperfect External Market • . GENERAL CONSIDERATIONS IN PRICING AND PRICE FORECASTING General Considerations Relevant for Pricing Policy . General Objectives of a Pricing Policy . Role of Cost in Pricing .Price Elasticity of Demand and Pricing. Price Forecasting . The Typical Price Movements • Demand-Supply Conditions and Price Forecasting • Impact of Nature of Commodity and Market Conditions • FACTOR MARKETS AND FACTOR PRICES Demand BK 0 0 0 0 MIIMLIB MIIMLIB REFERENCE BOOK 2019-02-11 405.00 0 338.7 2055 2019-02-11 2019-02-11 RFBK