Micro Economics -II

Paper Code: 
ECO 401
Credits: 
3
Contact Hours: 
45.00
Objective: 

1.    To illustrate the process of determination of equilibrium price and output in different market situations; and
2.    To understand the concept used in factor pricing.

7.00
Unit I: 
Cost and Revenue
  • Short- run cost curves and their relationship;
  • Cost in the long- run: LAC and LMC;
  • Economies and diseconomies of scale;
  • Revenue: Total, average and marginal revenue and their relationships;
  • Relationship between TR, MR, AR and elasticity.
9.00
Unit II: 
Theory of Firm I

•    Equilibrium of the firm: TR - TC approach and MR - MC approach;
•    Perfect competition: Determination of price and output in the short and long run;
•    Monopoly: Determination of price and output in the short and long run.

9.00
Unit III: 
Theory of Firm II

•    Monopoly: Price discrimination, measure of monopoly power;
•    Monopolistic competition: determination of price and output in the short- and long- run, excess capacity;
•    Oligopoly: Basic concept of non-collusive and collusive oligopoly, Paul M. Sweezy model.

10.00
Unit IV: 
Factor Pricing I

Marginal Productivity Theory of Distribution:
•    Factor pricing in perfectly competitive markets;
•    Factor pricing in imperfectly competitive markets.
Interest :
•    Classical  & Keynesian Theories.

10.00
Unit V: 
Factor Pricing II

Rent:
•    Ricardian theory of rent;
•    Modern theory of rent;
•    Quasi rent.
Profit:
•    Innovation, risk and uncertainty theories.
 

Essential Readings: 

1.    H.L. Ahuja, Micro Economic Theory, S. Chand & Company, New Delhi.

2.    Seth, M.L., Micro Economics, Laxmi Narayan Agarwal, Agra.
 

References: 

1.    Gould J.P. and C.F. Ferguson, Micro Economic Theory, All India Traveler Book Sellers, Delhi.

2.    Koutsoyiannis, A. (1999), Modern Microeconomics, Macmillan.

3.    Varian, H.R. (2000), Intermediate Microeconomics: A Modern Approach, East-west Press, New Delhi.

4.    Lipsey, R.G. (Latest edition), An Introduction to positive Economics.

5.    Stonier, A.W. and D.C. Hague (1972), A Textbook of Economics Theory, ELBS and Longman Group, London.

 

Academic Session: 
2018-19
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