School of Distance Education
groups. These principles often help people determine what is "right" or "wrong"
in different situations. Law, on the other hand, is a system of rules that are
created and enforced by institutions to regulate behavior, ensure order, and
resolve disputes.Ethical dilemmas often arise when an individual or organization
faces a situation in which different moral principles conflict, or where there is no
clear "right" answer. Legal issues, meanwhile, come into play when actions
conflict with established laws or legal norms. The challenge arises in balancing
both ethical and legal considerations when making decisions.### 2. **Ethical
Issues in Healthcare**Healthcare is one of the sectors where ethical and legal
issues are particularly pronounced. Medical professionals regularly face
situations that require them to make complex decisions that not only have life-
altering consequences for patients but also raise profound
MANAGERIAL ECONOMICS
STUDY MATERIAL
FIRST SEMESTER
COMPLEMENTARY COURSE : BC1C01
For
B.COM
(2019 ADMISSION ONWARDS)
Downloaded by Shah Hassan ()
, School of Distance Education
UNIVERSITY OF CALICUT
SCHOOL OF DISTANCE EDUCATION
Calicut University P.O, Malappuram, Kerala, India 673 635
groups. These principles often help people determine what is "right" or "wrong" in different situations.
Law, on the other hand, is a system of rules that are created and enforced by institutions to regulate
behavior, ensure order, and resolve disputes.Ethical dilemmas often arise when an individual or
organization faces a situation in which different moral principles conflict, or where there is no clear
"right" answer. Legal issues, meanwhile, come into play when actions conflict with established laws or
legal norms. The challenge arises in balancing both ethical and legal considerations when making
decisions.### 2. **Ethical Issues in Healthcare**Healthcare is one of the sectors where ethical and
legal issues are particularly pronounced. Medical professionals regularly face situations that require
them to make complex decisions that not only have life-altering consequences for patients but also
raise profound
CONTENTS
Modules Page No.
Module 1 3-12
Module 2 13-44
Module 3 45-69
Module 4 70-106
Module 5 107-136
Bibliography 137-138
University of Calicut
School of distance education
Study material
first semester
B. com(2017 admission onwards)
Complementary course :BC1C01 :managerial
economics
Prepared by
Downloaded by Shah Hassan ()
, School of Distance Education
Rajan P
Assistant Professor of Commerce
School of Distance Education, University
Of Calicut
Managerial EconomicsPage 2
MODULE - 1
INTRODUCTION
The term ―economics‖ has been derived from the ancient Greek Word ―Oikonomia‖which
means ‗household‘. Economics is a social science. It is called ‗social‘ because it studies
mankind of society. It deals with aspects of human behavior. It is called science since it studies
social problems from a scientific point of view.
groups. These principles often help people determine what is "right" or "wrong" in different
situations. Law, on the other hand, is a system of rules that are created and enforced by
institutions to regulate behavior, ensure order, and resolve disputes.Ethical dilemmas often arise
when an individual or organization faces a situation in which different moral principles conflict,
or where there is no clear "right" answer. Legal issues, meanwhile, come into play when actions
conflict with established laws or legal norms. The challenge arises in balancing both ethical and
legal considerations when making decisions.### 2. **Ethical Issues in Healthcare**Healthcare
is one of the sectors where ethical and legal issues are particularly pronounced. Medical
professionals regularly face situations that require them to make complex decisions that not only
have life-altering consequences for patients but also raise profound
Definition of Economics
Classical economists like Adam Smith, Ricardo, Mill Malthus and others; socialist economist
like Karl Marx; neo-classical economists like Alfred Marshall, AC Pigou and Lionel Robbins and
modern economists like JM Keynes,Samuelson and others have made considerable contribution to
the development of Economics. Hence a plethora of definitions are available in connection with the
subject matter of economics. These are broadly divided into
A. Wealth Definition,
B. Welfare Definition,
C. Scarcity Definition and
D. Growth Definition
A. Wealth Definition
Really the science of economics was born in 1776, when Adam Smith published his famous
book ―An Enquiry into the Nature and Cause of Wealth of Nation‖. He defined economics as the
Downloaded by Shah Hassan ()
, School of Distance Education
study of the nature and cause of national wealth. According to him, economics is the study of
wealth- How wealth is produced and distributed. He is called as ―father of economics‖ and his
definition is popularly called ―Wealth definition‖. But this definition was severely criticized by
highlighting the points like;
Too much emphasis on wealth,
Restricted meaning of wealth,
No consideration for human feelings,
No mention for man‘s welfare
Silent about economic problem etc…
B. Welfare Definition
It was Alfred Marshall who rescued the economics from the above criticisms. By his classic
Managerial EconomicsPage 3
groups. These principles often help people determine what is "right" or "wrong" in different situations.
Law, on the other hand, is a system of rules that are created and enforced by institutions to regulate
behavior, ensure order, and resolve disputes.Ethical dilemmas often arise when an individual or
organization faces a situation in which different moral principles conflict, or where there is no clear
"right" answer. Legal issues, meanwhile, come into play when actions conflict with established laws or
legal norms. The challenge arises in balancing both ethical and legal considerations when making
decisions.### 2. **Ethical Issues in Healthcare**Healthcare is one of the sectors where ethical and
legal issues are particularly pronounced. Medical professionals regularly face situations that require
them to make complex decisions that not only have life-altering consequences for patients but also
raise profound
work ―Principles of Economics‖, published in 1890, he shifted the emphasis from wealth to
human welfare. According to him wealth is simply a means to an end in all activities, the end being
human welfare. He adds, that economics ―is on the one side a study of the wealth; and the other
and more important side, a part of the study of man‖. Marshall gave primary importance to man
and secondary importance to wealth. Prof. A C Pigou was also holding Marshall‘s view. This
definition clarified the scope of economics and rescued economics from the grip of being called
―Dismal science‖, but this definition also criticized on the grounds that welfare cannot be measured
correctly and it was ignored the valuable services like teachers,lawyers,singers etc (non-material
welfare)
C. Scarcity Definition
After Alfred Marshall, Lionel Robbins formulated his own conception of economics in his
book ―The Nature and Significance of Economic Science‖ in 1932. According to him,
―Economics is the science which studies human behavior as a relationship between ends and
scares means which have alternative uses‖. He gave importance to four fundamental characters
of human existence such as;
1. Unlimited wants- In his definition ―ends‖ refers to human wants which are
boundless or unlimited.
2. Scarcity of means (Limited Resources) – the resources (time and money) at the
disposal of a person to satisfy his wants arelimited.
Downloaded by Shah Hassan ()
groups. These principles often help people determine what is "right" or "wrong"
in different situations. Law, on the other hand, is a system of rules that are
created and enforced by institutions to regulate behavior, ensure order, and
resolve disputes.Ethical dilemmas often arise when an individual or organization
faces a situation in which different moral principles conflict, or where there is no
clear "right" answer. Legal issues, meanwhile, come into play when actions
conflict with established laws or legal norms. The challenge arises in balancing
both ethical and legal considerations when making decisions.### 2. **Ethical
Issues in Healthcare**Healthcare is one of the sectors where ethical and legal
issues are particularly pronounced. Medical professionals regularly face
situations that require them to make complex decisions that not only have life-
altering consequences for patients but also raise profound
MANAGERIAL ECONOMICS
STUDY MATERIAL
FIRST SEMESTER
COMPLEMENTARY COURSE : BC1C01
For
B.COM
(2019 ADMISSION ONWARDS)
Downloaded by Shah Hassan ()
, School of Distance Education
UNIVERSITY OF CALICUT
SCHOOL OF DISTANCE EDUCATION
Calicut University P.O, Malappuram, Kerala, India 673 635
groups. These principles often help people determine what is "right" or "wrong" in different situations.
Law, on the other hand, is a system of rules that are created and enforced by institutions to regulate
behavior, ensure order, and resolve disputes.Ethical dilemmas often arise when an individual or
organization faces a situation in which different moral principles conflict, or where there is no clear
"right" answer. Legal issues, meanwhile, come into play when actions conflict with established laws or
legal norms. The challenge arises in balancing both ethical and legal considerations when making
decisions.### 2. **Ethical Issues in Healthcare**Healthcare is one of the sectors where ethical and
legal issues are particularly pronounced. Medical professionals regularly face situations that require
them to make complex decisions that not only have life-altering consequences for patients but also
raise profound
CONTENTS
Modules Page No.
Module 1 3-12
Module 2 13-44
Module 3 45-69
Module 4 70-106
Module 5 107-136
Bibliography 137-138
University of Calicut
School of distance education
Study material
first semester
B. com(2017 admission onwards)
Complementary course :BC1C01 :managerial
economics
Prepared by
Downloaded by Shah Hassan ()
, School of Distance Education
Rajan P
Assistant Professor of Commerce
School of Distance Education, University
Of Calicut
Managerial EconomicsPage 2
MODULE - 1
INTRODUCTION
The term ―economics‖ has been derived from the ancient Greek Word ―Oikonomia‖which
means ‗household‘. Economics is a social science. It is called ‗social‘ because it studies
mankind of society. It deals with aspects of human behavior. It is called science since it studies
social problems from a scientific point of view.
groups. These principles often help people determine what is "right" or "wrong" in different
situations. Law, on the other hand, is a system of rules that are created and enforced by
institutions to regulate behavior, ensure order, and resolve disputes.Ethical dilemmas often arise
when an individual or organization faces a situation in which different moral principles conflict,
or where there is no clear "right" answer. Legal issues, meanwhile, come into play when actions
conflict with established laws or legal norms. The challenge arises in balancing both ethical and
legal considerations when making decisions.### 2. **Ethical Issues in Healthcare**Healthcare
is one of the sectors where ethical and legal issues are particularly pronounced. Medical
professionals regularly face situations that require them to make complex decisions that not only
have life-altering consequences for patients but also raise profound
Definition of Economics
Classical economists like Adam Smith, Ricardo, Mill Malthus and others; socialist economist
like Karl Marx; neo-classical economists like Alfred Marshall, AC Pigou and Lionel Robbins and
modern economists like JM Keynes,Samuelson and others have made considerable contribution to
the development of Economics. Hence a plethora of definitions are available in connection with the
subject matter of economics. These are broadly divided into
A. Wealth Definition,
B. Welfare Definition,
C. Scarcity Definition and
D. Growth Definition
A. Wealth Definition
Really the science of economics was born in 1776, when Adam Smith published his famous
book ―An Enquiry into the Nature and Cause of Wealth of Nation‖. He defined economics as the
Downloaded by Shah Hassan ()
, School of Distance Education
study of the nature and cause of national wealth. According to him, economics is the study of
wealth- How wealth is produced and distributed. He is called as ―father of economics‖ and his
definition is popularly called ―Wealth definition‖. But this definition was severely criticized by
highlighting the points like;
Too much emphasis on wealth,
Restricted meaning of wealth,
No consideration for human feelings,
No mention for man‘s welfare
Silent about economic problem etc…
B. Welfare Definition
It was Alfred Marshall who rescued the economics from the above criticisms. By his classic
Managerial EconomicsPage 3
groups. These principles often help people determine what is "right" or "wrong" in different situations.
Law, on the other hand, is a system of rules that are created and enforced by institutions to regulate
behavior, ensure order, and resolve disputes.Ethical dilemmas often arise when an individual or
organization faces a situation in which different moral principles conflict, or where there is no clear
"right" answer. Legal issues, meanwhile, come into play when actions conflict with established laws or
legal norms. The challenge arises in balancing both ethical and legal considerations when making
decisions.### 2. **Ethical Issues in Healthcare**Healthcare is one of the sectors where ethical and
legal issues are particularly pronounced. Medical professionals regularly face situations that require
them to make complex decisions that not only have life-altering consequences for patients but also
raise profound
work ―Principles of Economics‖, published in 1890, he shifted the emphasis from wealth to
human welfare. According to him wealth is simply a means to an end in all activities, the end being
human welfare. He adds, that economics ―is on the one side a study of the wealth; and the other
and more important side, a part of the study of man‖. Marshall gave primary importance to man
and secondary importance to wealth. Prof. A C Pigou was also holding Marshall‘s view. This
definition clarified the scope of economics and rescued economics from the grip of being called
―Dismal science‖, but this definition also criticized on the grounds that welfare cannot be measured
correctly and it was ignored the valuable services like teachers,lawyers,singers etc (non-material
welfare)
C. Scarcity Definition
After Alfred Marshall, Lionel Robbins formulated his own conception of economics in his
book ―The Nature and Significance of Economic Science‖ in 1932. According to him,
―Economics is the science which studies human behavior as a relationship between ends and
scares means which have alternative uses‖. He gave importance to four fundamental characters
of human existence such as;
1. Unlimited wants- In his definition ―ends‖ refers to human wants which are
boundless or unlimited.
2. Scarcity of means (Limited Resources) – the resources (time and money) at the
disposal of a person to satisfy his wants arelimited.
Downloaded by Shah Hassan ()
