Business Decisions and Market Structures (Sem 1, BCom Bengaluru North Univ)

We have great pleasure in presenting First edition “Business Decisions and Market Structure” written for students of UG courses. The related matters are written in a simple and easily understandable.

This volume is an attempt to pro vide the students with thorough understanding of Business Decisions and Market Structure. We have presented the subject matter in a systematic manner with liberal use of charts and diagrams where ever necessary so as to make it interesting and sustain students’ interest.

Contents –

Module – 1 Introduction to Business Decisions
Introduction
Business Decision and Economic Problems
Scarcity and Choice
Nature of Business Decisions
Scope of Business Decisions
Positive Science
Normative Science
Micro and Macro Aspects
Central Problems of an Economy
Production Possibility Curve
Opportunity Cost
Working of Economic Systems
Business Cycles
Basic Characteristics of the Indian Economy
Major Issues of Economic Development
Recent Trends in Indian Economy
Review Questions

Module – 2 Consumption and Demand Analysis
Introduction
Demand
Meaning of Demand
Definition of Demand
Determinants of Demand
Types of Demand
Business Significance of Consumption and Demand
Demand Schedule
Individual and Market Demand Curve
Law of Demand
Changes in Demand
Elasticity of Demand
Effect of a Shift in Demand
Demand Forecasting
Survey and Statistical Methods
Consumption
Cardinal Utility Approach
Law of Diminishing Marginal Utility
Law of Equi-Marginal Utility
Indifference Curve Approach
Budget Line
Consumer’s Equilibrium
Review Questions

Module – 3 Production Analysis
Introduction
Production Analysis
Theory of Production
Production Function
Factors of Production
Characteristics of Production
Production Possibility Curves
Concepts of Total Product
Average Product
Marginal Product
Fixed and Variable Factors
Classical Approaches to the Law of Variable Proportions
Modern Approaches to the Law of Variable Proportions
Law of Returns to Scale
Economies of Scale
Diseconomies of Scale
Review Questions

Module – 4 Supply and Cost Analysis
Introduction
Supply
Meaning of Supply
Supply Schedule
Individual and Market Supply Curve
Determinants of Supply
Law of Supply
Changes in Supply
Equilibrium of Demand and Supply
Determination of Equilibrium Price and Quantity
Effect of a Shift Supply
Elasticity of Supply
Theory of Costs
Basic Concepts
Sunk Costs
Future Costs
Direct Costs and Indirect Costs
Cost Curves: Total, Average
Marginal Cost Curves
Relationship of Marginal Cost to Average Cost
Fixed and Variable Cost
Review Questions

Module – 5 Analysis of Revenue, Price and Markets
Introduction
Basic Concepts of Revenue
Revenue Curves: Total, Average
Marginal Revenue Curves
Relationship of Marginal Revenue to Average Revenue
Price and Output Decisions in Various Market Forms
Concept of Market
Main Forms of Market
Equilibrium of the Firm and Industry
Total Revenue
Total Cost Approach
Marginal Revenue
Marginal Cost Approach
Price and Output Determination in Perfect Competition
Price and Output Determination in Imperfect Competition
Monopoly
Monopolistic Competition
Oligopoly
Review Questions

Skill Development Activities