To understand the economic concepts and theories through mathematical methods so as to refine the verbal logic.
Nature of a Utility Function; properties of an Indifference curve; Maximization of utility; Derivation of Demand functions- Ordinary and compensated, elasticity of demand, elasticity relations, Restrictions on demand functions; Slutsky Equation - 2 and n- commodity cases, elasticity form and important results.
Income and Leisure - Derivation of labour supply function and its properties, Linear Expenditure System; Homogeneous , homothetic, direct, indirect, additive and separable utility functions; Duality in Consumption, Roy's Identity
Production function: Properties of a well behaved production function -Cobb-Douglas, CES and Leontief Production Functions; product curves; output elasticity of factor input; properties of an isoquant, Elasticity of substitution, homogeneous and linearly homogeneous production functions, Expansion path.
Optimization behaviour of a firm- Constrained cost minimization, constrained output maximization and profit maximization; properties and derivation of input demand functions; Cost functions- properties and derivation of short run and long run cost functions, determination of optimum size of plant.
Perfect Competition: short run and long run equilibrium, Effects of taxes. Monopoly- Profit Maximization, sales revenue maximization, price discrimination, Multi-Plant Monopolist, effect of various taxes on output and price under monopoly.