JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD

22BBA202: BUSINESS ECONOMICS

BBA (Data Analytics) II Semester (R22)

Course Objectives:

To understand basic concepts of economics and its applications in business.
To understand the importance of the demand and supply analysis in business forecasting.
To facilitate the knowledge of production aspects, economies and diseconomies of scale.
To understand the cost structure and various cost aspects in a firm and its applications.
To determine the price and output decisions under various market structures.

Course Outcomes

Students will be able to

Understand foundation of economics and its application in business.
Analyse the market focus, demand and supply in business.
Evaluate the production function, economics of scale to practical business aspects.
Analyze the types of cost its components, breakeven analysis in decision making.
Evaluate the various pricing methods, its application in different market structures.

UNIT - I: Introduction to Business Economics

Economics-Definition, concepts, micro vs macroeconomics, business economics, economics vs business economics, relation of business economics with other disciplines; business decisions in short and long run; Basic economic principles: opportunity cost, marginalism, equi-marginalism, incremental cost, time perspective, discounting principle, risk & uncertainty.

UNIT - II: Theory of Demand & Supply

Demand-Law of demand, demand function, demand schedule, types of demand, elasticity of demand, measurement of elasticity of demand, demand forecasting, demand forecasting methods. Exceptions to the law of demand. Supply- Law of supply, supply function, elasticity of supply. Market equilibrium.

UNIT - III: Production Analysis

Production function with one variable and two variables, Cobb Douglas production function, iso- quants and iso-costs, returns to scale, economies and diseconomies of scale.

UNIT - IV: Cost Concepts

Cost concepts, determinant of cost, cost output relationship in the short run and long run, short run vs long run costs, average cost curves, Break even analysis.

UNIT - V: Market Structures &Pricing Strategies

Classification of Market Structures: Perfect and imperfect markets, features of Perfect , Monopolistic, Oligopolistic and Monopoly markets, Price output determination under perfect competition and Monopoly.Pricing Policy, price discrimination, cost plus pricing, pricing of multiple products, transfer pricing.