The present book has been prepared for students of F.Y.B.Com., Semester I of University of Mumbai. The discussion in this book is divided into four modules. The structure, organisation and content of these modules are as follows :
Module I on ‘Introduction’ discusses meaning and nature of business economics, basic tools of analysis, basic economic relations, use of marginal analysis is decision-making, the concepts of demand and supply, and market equilibrium and price determination.
Module II on ‘Demand Analysis’ discusses the nature of demand curve under different market structures, the concepts of price elesticity, income elasticity promotional elasticity, and issues pertaining to demand forecasting.
Module III on ‘Supply and Production Decisions’ discusses the concept of production function, the law of variable proportions, isoquants and producer’s equilibrium, returns to scale, economies and diseconomies of scale, and economies of scope.
Module IV on ‘Theory of Cost’ discusses the concept of costs, the nature of cost function in short-run and long-run, short-run and long-run cost curves, learning curve and break-even analysis.
Contents –
Module I : Introduction
1. Scope and Importance of Business Economics
2. Demand and Supply
Module II : Demand Analysis
3. Demand Function : Nature of Demand Curve under Different Markets
4. Elasticity of Demand
5. Demand Forecasting
Module III : Supply and Production Decisions
6. Theory of Production : Law of Variable Proportions
7. Isoquants and Producer’s Equilibrium
8. Returns to Scale and Economies of Scale
Module IV : Theory of Costs
9. Theory of Costs
