• Course Objectives:
• the training objectives of this paper is to know the concept and nature of Managerial
Economics and its relationship with other disciplines and also to know the Concept of
Demand and Demand forecasting, Production function, Input Output relationship, CostOutput relationship and Cost-Volume-Profit Analysis.
• to know the character of markets, Methods of Pricing within the different market structures
and to understand the various sorts of business and therefore the concept of Business Cycles.
• to find out different Accounting Systems, preparation of monetary Statement and uses of
different tools for performance evaluation. Finally, it’s also to know the concept of
Capital, Capital Budgeting and therefore the techniques wont to evaluate Capital Budgeting proposals.
UNIT-I
Introduction to Managerial Economics and demand Analysis:
Definition of Managerial Economics –Scope of Managerial Economics and its relationship with
other subjects –Concept of Demand, sorts of Demand, Determinants of Demand- Demand
schedule, Demand curve, Law of Demand and its limitations- Elasticity of Demand, Types of
Elasticity of Demand and Measurement- Demand forecasting and Methods of forecasting,
Concept of Supply and Law of Supply.
UNIT – II:
Production and price Analyses:
Concept of Production function- Cobb-Douglas Production function- Leontief production
function – Law of Variable proportions-Isoquants and Isocosts and selection of least cost factor
combination-Concepts of Returns to scale and Economies of scale-Different cost concepts:
opportunity costs, explicit and implicit costs- Fixed costs, Variable Costs and Total costs –Cost –
Volume-Profit analysis-Determination of Breakeven point(simple problems)-Managerial
significance and limitations of Breakeven point.
UNIT – III:
Introduction to Markets, Theories of the Firm & Pricing Policies:
Market Structures: Perfect Competition, Monopoly, Monopolistic competition and Oligopoly –
Features – Price and Output Determination – Managerial Theories of firm: Marris and
Williamson’s models – other Methods of Pricing: monetary value pricing, Limit Pricing, Market
Skimming Pricing, Internet Pricing: (Flat Rate Pricing, Usage sensitive pricing) and Priority
Pricing.
UNIT – IV:
Types of business and Business Cycles:
Features and Evaluation of Sole Trader, Partnership, Joint Stock Company – State/Public
Enterprises and their forms – Business Cycles : Meaning and Features – Phases of a Business
Cycle.

Managerial Economics & Financial Analysis Lecture Notes Jntuk R16

IV Year – I Semester
L T P C
4 0 0 3
Unit – V:
Introduction to Accounting & Financing Analysis:
Introduction to double-entry bookkeeping Systems – Preparation of monetary Statements-Analysis and
Interpretation of monetary Statements-Ratio Analysis – Preparation of Funds flow and income
statements (Simple Problems)
UNIT – VI:
Capital and Capital Budgeting: Capital Budgeting: Meaning of Capital-CapitalizationMeaning of Capital Budgeting-Time value of money- Methods of appraising Project
profitability: Traditional Methods(pay back period, accounting rate of return) and modern
methods(Discounted income method, Net Present Value method, Internal Rate of Return
Method and Profitability Index)
Course Outcome:
*The Learner is provided with the knowledge of estimating the Demand and demand elasticities
for a product and therefore the knowledge of understanding of the Input-Output-Cost relationships and
estimation of the smallest amount cost combination of inputs.

• One is additionally able to understand the character of various markets and Price Output determination
  under various market conditions and also to possess the knowledge of various Business Units.
  *The Learner is in a position to organize Financial Statements and therefore the usage of varied Accounting tools
  for Analysis and to guage various investment project proposals with the assistance of capital
  budgeting techniques for deciding .
  TEXT BOOKS

1. Dr. N. AppaRao, Dr. P. Vijay Kumar: ‘Managerial Economics and Financial Analysis’,
   Cengage Publications, New Delhi – 2011
2. Dr. A. R. Aryasri – Managerial Economics and Financial Analysis, TMH 2011
3. Prof. J.V.Prabhakararao, Prof. P. Venkatarao. ‘Managerial Economics and Financial
   Analysis’, Ravindra Publication.
   REFERENCES:
   1.Dr. B. Kuberudu and Dr. T. V. Ramana: Managerial Economics & Financial Analysis,
   Himalaya publisher , 2014.
4. V. Maheswari: Managerial Economics, Sultan Chand.2014
5. Suma Damodaran: Managerial Economics, Oxford 2011.
6. VanithaAgarwal: Managerial Economics, Pearson Publications 2011.
7. Sanjay Dhameja: Financial Accounting for Managers, Pearson.
8. Maheswari: Financial Accounting, Vikas Publications.
9. S. A. Siddiqui& A. S. Siddiqui: Managerial Economics and Financial Analysis, New Age
   International Publishers, 2012
10. Ramesh Singh, Indian Economy, 7th Edn., TMH2015
11. Pankaj Tandon A Text Book of Microeconomic Theory, Sage Publishers, 2015
12. Shailaja Gajjala and Usha Munipalle, Univerties press, 2015

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