Description

Business Economics – II

FYBCOM Semester II

Syllabus

1. Market Structure : Perfect Competition and Monopoly (10 Lec.)
Perfect competition and Monopoly models as two extreme cases – profit maximisation and the competitive firm’s supply curve – Short run and long run equilibrium of a firm and of industry – monopoly – Sources of monopoly power – short run and long- run equilibrium of a firm under Monopoly

2. Pricing and Output Decisions under Imperfect Competition (15 Lec.)
Monopolistic Competition : Competitive and monopolistic elements of monopolistic competition – equilibrium of a firm under monopolistic competition, monopolistic competition verses perfect competition- excess capacity and inefficiency – debate over role of advertising (topics to be taught using case studies from real life examples)
Oligopolistic markets: key attributes of oligopoly – Collusive and non collusive oligopoly market – Price rigidity – Cartels and price leadership models (with practical examples)

3. Pricing Practices (10 Lec.)
Cost oriented pricing methods : Cost – plus (full cost) pricing, marginal cost pricing, Mark up pricing, discriminating pricing, multiple – product pricing – transfer pricing (case studies on how pricing methods are used in business world)
4. Evaluating Capital Projects (10 Lec.)
Meaning and importance of capital budgeting- steps in capital budgeting – + Techniques of Investment appraisal : Payback Period Method, Net Present Value Method, and Internal Rate of Return Method (with numerical examples)