Basics of Business Economics 1st Semester Osmania University BBA 2025-26 Notes

Unit 1
Business Economics, Meaning, Nature, and Scope, Importance in Decision-making VIEW
Business Economics Relationship with Other Disciplines: Accounting, Finance, Marketing, And Managerial Economics VIEW
Micro vs. Macro Business Economics Perspectives: Differences, Interdependence, and Applications to Business VIEW
Basic Economic Problems of an Economy VIEW
Scarcity, Choice VIEW
Allocation of Resources VIEW
Opportunity Cost VIEW
Incremental Cost VIEW
Marginalism, Concepts and Managerial Significance VIEW
Equi-Marginal Principle, Applications in Business Decision Making VIEW
Unit 2
Demand Concepts VIEW
Determinants of Demand VIEW
Law of Demand VIEW
Movement vs Shift VIEW
Price, Income, and Substitution Effects VIEW
Elasticities of Demand: Price, Income, and Cross Elasticity Measurement and Importance in Business Decisions VIEW
Measurement of Elasticity VIEW
Demand Forecasting, Objectives VIEW
Qualitative and Quantitative Demand Forecasting Methods VIEW
Supply Analysis: Law of Supply VIEW
Supply Determinants VIEW
Supply Elasticity VIEW
Unit 3
Production Function, Short-run and Long-run VIEW
Law of Variable Proportions VIEW
Returns to Scale VIEW
Cost Concepts and Classification: Fixed, Variable, Total, Average, and Marginal Costs, Sunk Cost and Opportunity Cost VIEW
Break-Even Analysis (BEP): Meaning, Significance, and Applications in Business Decisions VIEW
Unit 4
Inflation, Meaning, Types (Demand-pull and Cost-push), and Impact on Business VIEW
National Income Concepts: GDP, GNP, NNP, PCI Basic Understanding and Business Relevance VIEW
Economic Environment of Business: Impact of Macroeconomic Factors (Growth, Trade, Policy) on Business Decisions VIEW
Overview of Economic Reforms: Liberalization, Privatization, and Globalization (LPG) and their Influence on Indian Business VIEW

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