Mathematical Economics-II

Paper Code: 
ECO 613
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Objectives:

The objectives of this course are –

 

  1. To develop an understanding of the use of integral calculus and its use in economics.
  2. To help the students to understand the application of mathematical techniques to determine price and output under perfect competition, monopoly and monopolistic competition.
  3. To help the students to understand the application of techniques like linear programming, input-output analysis and game theory  in economics.

 

 

Course Outcomes (COs):

 

 

Course

 Outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Paper Code

Paper Title

ECO 613

Mathematical Economics-II

CO80: Understand the techniques which can be used in the mathematical analysis of behaviour of firms under monopoly and duopoly.

CO81: Acquire the knowledge of the techniques of Linear Programming and Input Output analysis.

Approach in teaching: Interactive Lectures and Discussions.

 

Learning activities for the students:

Practice Modules and

Assignments.

Class activity, Assignments and Semester end examinations.

 

12.00
Unit I: 
Price and Output Determination under Monopoly
  • Profit Maximization, sales revenue maximization, price discrimination, Multi-Plant Monopolist, effect of various taxes on output and price under monopoly;

 

12.00
Unit II: 
Price and Output Determination under Duopoly
  • Quasi competitive solution, Collusion solution, Cournot solution and market share solution.

 

12.00
Unit III: 
Game Theory
  • Basic concept
  • Two-person, Zero-sum Games, Saddle point solution;
  • dominant strategies, Pure and Mixed strategies;

 

12.00
Unit IV: 
Input-Output Analysis
  • Concept of ‘Open & Closed’, ‘Static & Dynamic’ Model;
  • Determination of gross output in an open model.
  • Hawkins-Simon conditions of viability;

 

12.00
Unit V: 
Linear Programming
  • Formulation of Problem and its Graphical solution;
  • Simplex Method (for maximization only);
  • Concept of Primal and Dual.

 

Essential Readings: 
  1. Henderson, J.M. and R.E. Quandt (1980), Microeconomic Theory: A Mathematical Approach, McGraw Hill, New Delhi.
  2. Chiang, A. C., Kevin Wainwright, Fundamental Methods of Mathematical Economics  (Fourth Edition), McGraw Hill, 2005
  3. Mehta, B.C. and G.M.K. Madnani, Mathematics for Economists, Sultan Chand & Sons, New Delhi.
  4. Mehta, B.C. , Mathematical Economics: Microeconomic Models, Sultan Chand & Sons, New Delhi.

 

Academic Session: 
2020-21
  • Printer-friendly version
  • PDF version