Description

Business Economics is the branch that deals with the organisation and allocation of a firm’s scarce resources to achieve its desired goals. Business Economics, thus, interconnects economic principles and business. It is a link between the theory of Economics and the decision sciences in the analysis of managerial decision-making. Problem identification and solution to problems are the two essential elements of the decision-making of a corporate firm. Decision-makers inhibit ‘uncertainty’ of the real world where the changes are either in a hidden way or in an open manner.
The basic economics course introduces the student to micro and macroeconomic concepts, managerial economics and business economics are geared towards equipping the student with the economic concepts necessary to run firms. A book to teach Business Economics would accomplish very little unless a broad spectrum of knowledge is imparted regarding the concepts of economics to aid managerial decision making. The book equips students to apply Law of Supply and Demand in various market conditions, delineate the features of production and cost curve in the short term and long term perspective, appropriate market structure, analyse the impact of monetary and Fiscal policies on business decision making and decipher pricing strategies in small and large organisasations.
By this students would be able to make investment decisions based on capital budgeting methods in alignment with microeconomic and macroeconomic theories, able to analyse the profitability of the firm, economy of operation, determination of price under various market situations with good grasp on the effect of trade cycles in business, gain knowledge on Monetary theory, measures by RBI in controlling interest rate and emerging concepts like Bit Coin and also gain knowledge of elementary accounting concepts used for preparing balance sheet and interpretation of balance sheet
The book has been divided into seven modules:
First module evaluates the importance of Economics in Business Decisions
Second module analyses the Demand and Demand Elasticity in varying market conditions.
Third module appraise the Production and Cost Curve in the Short Run and Long Run
Fourth module explains Price and Output determination in different Market Structures
Fifth module evaluates the impact of Monetary Policy Measures and Fiscal Policy Measures and Pricing Strategies of Small and Large Business Firms.
Sixth module helps to gain understanding of some Macroeconomic concepts to improve their ability to understand the business climate
Seventh module helps to prepare and analyse various business tools like balance sheet, cost benefit analysis and rate of returns at an elementary level