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 mo

• 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.