Introductory Microeconomics (Generic Elective Course)

Paper Code: 
GECO 301
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

1. To introduce the basic concepts of microeconomics.

2. To help analyze consumer’s behaviour and producer’s behaviour.

3. To study the price determination of goods and factors in perfect and imperfect markets.

12.00
Unit I: 
Introduction of Microeconomics

·         Meaning and scope of microeconomics ;

·         static, comparative and dynamic microeconomic analysis;

·         meaning of demand and supply, demand and supply schedules,

·         law of demand and supply, demand and supply curves-individual and demand, change in quantity demanded and demand,

·         equilibrium with demand and supply

·         Elasticity of demand- meaning and types( price, income and cross elasticity), degrees of price elasticity of demand.

12.00
Unit II: 
Utility Analysis

·         Cardinal measurement of utility, concepts of TU and MU

·         law of diminishing MU

·         law of equi-marginal utility

·         Ordinal measurement of utility, indifference curve- meaning and characteristics and slope, budget line-meaning , construction and slope, equilibrium of the consumer

12.00
Unit III: 
Production and Cost Analysis

·         Production Analysis-Concepts of output and input

·         production function, short-run and long-run production functions

·         Law of variable proportions

·         Isoquants – meaning and characteristics; Iso-cost line - meaning

·         Equilibrium of producer

·         Cost Analysis- various concepts of cost, Costs in the short-run and long-run

·         Revenue Analysis- Concepts of TR, AR and MR, revenue curves under perfect and imperfect markets

12.00
Unit IV: 
Goods Markets and Price Determination

·         Meaning and types of markets, firm and industry

·         Perfect competition- characteristics, demand and supply curves for a firm in short-run and long- run, equilibrium of firm and industry in short-run and long-run

·         Monopoly-characteristics, equilibrium in the short-run and long-run

·         Monopolistic competition and oligopoly- characteristics, oligopoly problem, concepts of non-collusive and collusive oligopoly

12.00
Unit V: 
Factor Market and Price Determination

·         Factors of production and their prices

·         Marginal productivity theory of distribution

·         Theories of rent (Ricardian theory and modern theory)

·         Theories of interest (classical, neoclassical and Keynesian)

·         Theories of profit (innovation, risk and uncertainty theories)

Essential Readings: 

·         Ahuja, H.L., Modern Microeconomics: Theory & Applications, S. Chand & Company, 19th Edition, 2022

References: 
  1. Koutsoyiannis, A., Modern Microeconomics, Macmillan, 2nd Edition, 2020.
  2. Varian, H.R., Intermediate Microeconomics: A Modern Approach, East-west Press, 8th Edition, 2010.
  3. Stonier, A.W. and D.C. Hague, A Textbook of Economics Theory, ELBS and Longman Group, 5th Edition, 2003
Academic Session: 
2023-24
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