1. To help the students understand the application of mathematical techniques to solve optimization problems of a consumer.
2. To help the students examine the application of mathematical techniques to solve optimization problems of a firm.
3. To help students apply the mathematical techniques to understand determination of price and quantity in perfect competition and monopoly.
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,CESand Leontief Production Functions; product curves; output elasticity of factor input; properties of an isoquant, Elasticity of substitution, homogeneous and linearlyhomogeneous 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.
1. James. M. Henderson and Richard E. Quandt, Microeconomic Theory: A Mathematical Approach, McGraw-Hill Inc., US; 3rd Revised edition,1980.
2. B.C. Mehta: Mathematical Economics: Microeconomic Models, SultanChand& Sons.
1. R.G.D Allen, Mathematical Economics,Macmillan; 2nd Revised edition, 1959.
2. Alpha C Chiang, Fundamental Methods of Mathematical Economics, McGraw-Hill Education.