Advanced Microeconomic Theory – I

·         Price, income and substitution effects, Slutsky equation,

·         Buying and selling,

·         Revealed preference,

·         Choice under risk and uncertainty,

·         Inter - temporal choice

·         Concept of production function

·         Technological progress and production function

·         Choice of optimum expansion path

·         Derivation of cost function from production function

·         Production function of a multiproduct firm

·         Modern theory of costs

·         Short-run and long-run engineering cost curves

·         Economies of scale and scope

·         Perfect competition: Equilibrium of firm and industry in short run and long run, dynamic changes and industry equilibrium, effect of imposition of tax, optimum resource allocation.

·         Monopoly: Equilibrium of monopolist in short run and long run, plant size and monopolist’s equilibrium, monopoly model in dynamic situations, effect of tax imposition, multi plant firm, bilateral monopoly, government regulated monopoly. 

·         Monopolistic Competitions: Actual and anticipated demand curves, Chamberlin and equilibrium, excess capacity theorem, critique of Chamberlin model, comparison with perfect competition and monopoly.

·         Oligopoly: Non-collusive oligopoly( duopoly models), cartels,  price leadership by barometric firm, low cost firm and dominant firm, Basing –point price system, game theory.

·         The marginalist controversy,

·         Full-cost pricing principle,

·         Gorden’s attack on and defence of marginalism,

·         Representative model of average-cost pricing,

·         Bain’s limit-pricing theory,

Models of Sylos-Labini, Franco Modigliani, Bhagwati and Pashigian