Welcome to the dedicated web page for the AKTU MBA 1st Semester course on Managerial Economics (BMB 102). This course is thoughtfully designed to equip students with the economic tools and frameworks essential for sound business decision-making. It bridges the gap between economic theory and real-world managerial practice, enabling future managers to analyse market dynamics, forecast demand, optimise production, and understand the macroeconomic environment. The course follows the AICTE Model Curriculum & NEP 2020, effective from the academic session 2024-25.
For More Content Visit → AKTU MBA 1st Semester Notes
Course Code: BMB 102 | Course Credit: 3 | Contact Hours: 40 | Internal: 30 Marks | End Semester: 70 Marks | Total: 100 Marks
Unit I – Basic Concepts and Principles
Basic Concepts and Principles: Definition, Nature and Scope of Economics – Micro Economics and Macro Economics, Managerial Economics and its relevance in business decisions. Fundamental Principles of Managerial Economics – Incremental Principle, Marginal Principle, Opportunity Cost Principle, Discounting Principle, Concept of Time Perspective, Equi-Marginal Principle, Utility Analysis, Cardinal Utility and Ordinal Utility. Case Studies.
- Definition, Nature, and Scope of Economics
- Micro Economics and Macro Economics
- Managerial Economics and its relevance in business decisions
- Fundamental Principles of Managerial Economics:
- Incremental Principle
- Marginal Principle
- Opportunity Cost Principle
- Discounting Principle
- Concept of Time Perspective
- Equi-Marginal Principle
- Utility Analysis:
- Cardinal Utility
- Ordinal Utility
UNIT II: Demand and Supply Analysis
Demand and Supply Analysis: Theory of Demand, Types of Demand, Determinants of demand, Demand Function, Demand Schedule, Demand curve, Law of Demand, Exceptions to the law of Demand, Shifts in demand curve, Elasticity of Demand and its measurement. Price Elasticity, Income Elasticity, Arc Elasticity, Cross Elasticity and Advertising Elasticity. Uses of Elasticity of Demand for managerial decision making, Demand forecasting meaning, significance and methods. Supply Analysis – Law of Supply, Supply Elasticity, Analysis and its uses for managerial decision making. Price of a Product under demand and supply forces. Case Studies.
- Theory of Demand
- Types of Demand
- Determinants of Demand
- Demand Function, Demand Schedule, Demand Curve
- Law of Demand
- Exceptions to the Law of Demand
- Shifts in Demand Curve
- Elasticity of Demand and its measurement:
- Price Elasticity
- Income Elasticity
- Arc Elasticity
- Cross Elasticity
- Advertising Elasticity
- Uses of Elasticity of Demand for managerial decision making
- Demand Forecasting:
- Meaning and significance
- Methods (Numerical Exercises)
- Supply Analysis:
- Law of Supply
- Supply Elasticity
- Analysis and its uses for managerial decision making
- Price of a Product under demand and supply forces
UNIT III: Production and Cost Analysis
Production and Cost Analysis: Production concepts & analysis, Production function, Types of production function, Laws of production – Law of diminishing returns, Law of returns to scale. Cost concept and analysis – Cost, Types of costs, Cost output relationship in the short-run, Cost output relationship in the Long-run, Estimation of revenue, Average Revenue, Marginal Revenue. Case Studies.
- Production concepts and analysis
- Production Function
- Types of Production Function
- Laws of Production:
- Law of Diminishing Returns
- Law of Returns to Scale
- Cost concept and analysis:
- Cost
- Types of costs
- Cost output relationship in the short-run
- Cost output relationship in the long-run
- Estimation of Revenue:
- Average Revenue
- Marginal Revenue
UNIT IV: Market Structures
Market Structures: Perfect and Imperfect Market Structures, Perfect Competition – features, determination of price under perfect competition. Monopoly – Feature, pricing under monopoly, Price Discrimination. Monopolistic – Features, pricing under monopolistic competition, product differentiation. Oligopoly – Features, kinked demand curve, cartels, price leadership. Case Studies.
- Perfect and Imperfect Market Structures
- Perfect Competition:
- Features
- Determination of price under perfect competition
- Monopoly:
- Features
- Pricing under monopoly
- Price Discrimination
- Monopolistic Competition:
- Features
- Pricing under monopolistic competition
- Product differentiation
- Oligopoly:
- Features
- Kinked demand curve
- Cartels
- Price leadership
UNIT V: National Income
National Income: Concepts and various methods of its measurement, Circular flows in 2 sector, 3 sector, 4 sector economies, Inflation, types and causes, Business Cycle & its phases.
- Concepts of National Income
- Various methods of measurement of National Income
- Circular Flows:
- 2 sector economy
- 3 sector economy
- 4 sector economy
- Inflation:
- Types of inflation
- Causes of inflation
- Business Cycle and its phases
For More Content Visit → AKTU MBA Notes
Course Objectives of BMB 102
- To understand the importance of Managerial Economics in management and businesses.
- To apply the principles of managerial economics in achieving business objectives.
- Be equipped with the tools necessary in forecasting product demand.
- Understand and be able to apply latest pricing strategies.
- Understand and analyze the macro environment affecting the business decision making.
Download BMB 102 Official Syllabus PDF
Download the official AKTU MBA BMB 102 – Managerial Economics syllabus as prescribed by Dr. A.P.J. Abdul Kalam Technical University, Uttar Pradesh, Lucknow. Effective from Session 2024-25, as per AICTE Model Curriculum & NEP 2020.
⬇ Download BMB 102 Syllabus PDF
Course Outcomes of BMB 102
| Course Outcomes | Bloom’s Taxonomy |
| CO 1: Students will be able to remember the concepts of micro economics and also able to understand the various micro economic principles to make effective economic decisions under conditions of risk and uncertainty. | Knowledge (K2) · Remembering (K1) |
| CO 2: The students would be able to understand the law of demand & supply & their elasticities, evaluate & analyse these concepts and apply them in various changing situations in industry. Students would be able to apply various techniques to forecast demand for better utilization of resources. | Knowledge (K2) · Applying (K4) · Synthesizing (K6) · Evaluating (K7) |
| CO 3: The students would be able to understand the production concept and how the production output changes with the change in inputs and able to analyse the effect of cost to business and their relation to analyze the volatility in the business world. | Comprehending (K3) · Applying (K4) · Analyzing (K5) · Evaluating (K7) |
| CO 4: The students would be able to understand & evaluate the different market structure and their different equilibriums for industry as well as for consumers for the survival in the industry by the application of various pricing strategic. | Applying (K4) · Analyzing (K5) · Synthesizing (K6) |
| CO 5: The students would be able to analyse the macroeconomic concepts & their relation to micro economic concept & how they affect the business & economy. | Knowledge (K2) · Comprehending (K3) |
Suggested Readings for BMB 102
- Managerial Economics, D.N. Dwivedi, Vikas Publication, 7th Ed.
- Managerial Economics, GEETIKA, McGraw-Hill Education, 2nd Ed.
- Managerial Economics: Concepts and Applications (SIE), THOMAS & MAURICE, McGraw-Hill Education, 9th Ed.
- Managerial Economics, H.L. Ahuja, S. Chand, 8th Ed.
- Managerial Economics – Theory and Applications, Dr. D.M. Mithani, Himalaya Publications, 7th Ed.
- Sociology & Economics for Engineers, Dr. Premvir Kapoor, Khanna Publishing House.
Managerial Economics is a vital pillar of every MBA programme, empowering students to make informed, data-driven, and strategically sound business decisions. By mastering the principles of demand, supply, production, cost, market structures, and macroeconomic forces, students develop the analytical mindset of a confident and capable manager. We are delighted to support your learning journey and look forward to helping you build a strong economic foundation for your managerial career ahead.