Objective : 1. To expose students to basic micro economic concepts. 2. To apply economic analysis in the formulation of business policies. 3. To use economic reasoning to problems of business. 1 INTRODUCTION 1.1 Meaning, Nature and Scope of Business Economics - Micro and Macro 1.2 Basic Economic Problems 1.3 Market forces in solving economic problems. 1.4 Circular Flow of Income and Expenditure 2 DEMAND ANALYSIS 2.1 Concept of Demand 2.2 Elasticity of Demand and their types. 2.3 Revenue Concepts - Total Revenue, Marginal Revenue, Average Revenue and their relationship 3 SUPPLY ANALYSIS 2 3.1 Concept and Law of Supply 3.2 Factors Affecting Supply 4 COST ANALYSIS 4.1 Accounting Costs and Economic Costs 4.2 Short Run Cost Analysis : Fixed, Variable and Total Cost Curves, Average and Marginal Costs 4.3 Long Run Cost Analysis : Economies and Diseconomies of Scale and Long Run Average and Marginal Cost Curves 5 PRICING UNDER VARIOUS MARKET CONDITIONS 5.1 Perfect Competition - Equilibrium of Firm and Industry under Perfect Competition 5.2 Monopoly - Price Determination under Monopoly 5.3 Monopolistic Competition - Price and Output Determination under Monopolistic Competition. 6 DISTRIBUTION 6.1 Marginal Productivity Theory of Distribution 6.2 Rent : Modern Theory of Rent 6.3 Wages : Wage Determination under Imperfect Competition - Role of Trade Union and Collective Bargaining in Wage Determination 6.4 Interest : Liquidity, Preference Theory of Interest 6.5 Profits : Dynamic, Innovation, Risk - Bearing and Uncertainty Bearing Theories of Profits