Objectives of Business Firms – Profit Maximization – Social Responsibilities – Demand Analysis – Law of Demand – Elasticity of Demand

Production Function – Factors of Production – Law of Diminishing Returns – Law of Variable Proportion – Economies of Scale – Cost and Revenue Curves – Break even Analysis.

Market Structure and Prices – Prices under Perfect Competition – Pricing Under Monopoly – Price Discrimination – Pricing under Monopolistic Competition – Oligopoly.

Pricing under factors of production-Wages-Marginal Productivity Theory-Interest-Keyne’s Liquidity preference theory- Theories of profit – Dynamic theory of profit-Risk theory-Uncertainty Theory

Government and Business – Performance of public enterprises in India – Price policy in Public Utilities- Government Measures to control Monopoly in India- MRTP Act.