MG25301 Economic Analysis for Business Systems – Semester III – CSBS – R-2025

Subject Code & Name: MG25301 – Economic Analysis for Business Systems

Regulation: R-2025

Semester: III (Third Semester)

Branch: B.Tech. Computer Science and Business Systems (CSBS)

Credits / L-T-P: 3 Credits | L-T-P: 3-0-0

Course Objectives

• This course aims to equip students with a robust understanding of fundamental and advanced concepts in managerial economics, consumer behaviour, and market structures, integrating standard economic theories with contemporary behavioural approaches.
• It seeks to develop analytical skills in cost and production optimisation, capital budgeting, and financial accounting to facilitate effective managerial decision-making.

Full Unit-wise Syllabus

Unit I – Introduction to Economic Principles

The problem of scarcity and allocation of resources – Nature, Scope, & Significance of Managerial Economics – Roles and Responsibilities of Managerial Economist – The circular flow of Economy – The Basic process of decision making – Types of Economic Analysis: Micro and Macro Economics.

Activities: A Group task to demonstrate scarcity opportunity cost.

Unit II – Demand, Supply, and Consumer Behaviour

Market Equilibrium – Law of Demand, Demand Function, and Exceptions to the Law of Demand – Elasticity of Demand: Classification of Price, Income & Cross elasticity, Advertising, and promotional elasticity of demand – Measurement of elasticity of demand – Law of supply, Supply Function, Elasticity of supply.

Activities: Real time data based analysis of elasticity of demand.

Unit III – Theory of Production and Cost Analysis

Production Function: Meaning, Features and types – Short-run and Long-run Production Function – Isoquants and ISO costs, Least-cost combination factor – Economies and Diseconomies of scale – Technological progress – Cost behaviour in Short-run and Long-run – Types of cost: Accounting and Economic cost – Cost concepts – LAC curve Break-Even Analysis (BEA): Determination of Break-Even Point.

Activities: Illustration of economies of scale/break even analysis based real time news reports.

Unit IV – Market Structures, Pricing, and Capital Budgeting

Forms of Business Organizations: Sole Proprietary, Partnership, Joint Stock Companies – Types of Markets: Perfect and Imperfect Markets – Features of Perfect Competition, Monopoly, Monopolistic and Oligopoly – Price-Output Determination and Price Discrimination.

Activities: Identifying and classifying sectors/companies that come under different market structures.

Unit V – Capital Budgeting

Capital and its Significance: Estimation of fixed and working capital requirements – Methods and sources of raising capital – Capital Budgeting Methods: Payback period, Accounting rate of return, Net present value, Internal Rate of return, and Profitability index.

Activities: Using real or hypothetical data to select project based on NPV, IRR and PI.

Unit VI – Macroeconomic Framework and Financial Analysis

National Income and its Components: GNP, NNP, GDP, NDP – Methods of measuring National Income – Business Cycles and Stabilisation Monetary and Fiscal Policy: Central Bank and the Government, FDI, Inflation, Unemployment, Taxes and Subsidies External sector Export and Import.

Activities: Recent budget analysis.

Course Outcomes (COs)

• CO1: Interpret foundational economic principles, scarcity, and opportunity costs to understand the macroeconomic environment.
• CO2: Demonstrate the laws of demand and supply to calculate elasticity and understand basic consumer behaviour.
• CO3: Analyse production functions and cost behaviours to mathematically determine the Break-Even Point (BEA) of a firm.
• CO4: Examine imperfect and perfect market structures to optimise pricing strategies and output determinations.
• CO5: Evaluate capital budgeting proposals (NPV, IRR) and macroeconomic policies to assess long-term organisational investments.
• CO6: Develop financial statements and calculate complex profitability/liquidity ratios using modern double-entry bookkeeping tools.

Assessment Pattern (Quick Note)

• Weightage: Continuous Assessment (CIE) 40% | End Semester Examinations (SEE) 60%
• Assessment Methodology: Written Tests, Break-Even/Capital Budgeting Numerical Worksheets, Financial Ratio Analysis Project, and a Case Study on Organisational "Nudges."

Source: Official Anna University – B.Tech. Computer Science and Business Systems R-2025 Syllabus
Last Updated: September 2026