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, multiplant 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,

·       Difference between average cost and marginal cost price

·       Bain’s limit-pricing theory,

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