Coming soon
Microeconomic Theory – I
To acquaint the students with the behaviour of an economic agent, namely a consumer and a producer in a comparative static and partial equilibrium framework.
Cardinal Utility Analysis; Indifference Curve Analysis, Goods, Bads and Neuters, Consumer’s Equilibrium, Corner Solution, Slutsky Equation-Price, Income and Substitution Effects (Normal, Inferior and Giffen goods), ICC Curve, PCC Curve, Demand Curve- Ordinary and Compensated, Engel Curve, Elasticity of demand.
Network Externalities- Bandwagon, Snob and Veblen effects, Consumer Surplus- Marshall’s Measurement, Measurement of Consumer Surplus through Indifference Curve; Revealed Preference Hypothesis; Analysis of consumer behavior under risk and uncertainty; Asymmetric information, Behavioral Economics.
Production function – short run and long run; Law of variable proportions Isoquants and Isocost lines; Optimum Factor Combination, Expansion Path, Ridge Lines, returns to scale; Cobb-Douglas production function, Elasticity of Substitution, Euler's theorem , Technical Progress-Capital Deepening and Labour Deepening.
Cost Concepts, Short run and long run cost curves; Modern Theory of Cost, Economies of scale; Economies of Scope and Learning curve analysis.
Short run and long run equilibrium of the firm and industry, increasing, decreasing and constant cost industry, effects of taxes under perfect competition.
