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Microeconomics –I
Paper Code:
ECO 301
Credits:
3
Contact Hours:
45.00
Max. Marks:
100.00
Objective:
1. To introduce the basic concepts of microeconomics.
2. To help analyze consumers’ behavior and producer’s behavior.
3. To examine the theory of production both in the short run and in the long run
9.00
Unit I:
Cardinal Utility Analysis
- Utility : Meaning &measurability
- Total and Marginal utility;
- Law of diminishing marginal utility;
- Consumer’s equilibrium – law of equi-marginal utility.
- Consumer’s surplus – Marshallian Concept.
9.00
Unit II:
Ordinal Utility Analysis
- Indifference curves : Characteristics, MRS
- Budget line : Slope & shift
- Consumer’s equilibrium.
9.00
Unit III:
Topics on Consumer Behaviour
- Income consumption curve, Price consumption curve
- Price, substitution and income effect: Normal, Inferior and Giffen Goods (Hicksian Approach);
- Engel’s Curve : Derivation of Engel’s curve & demand curve from IC analysis
- Elasticity of demand: Price, Income and Cross – meaning & measurement;
9.00
Unit IV:
Theory of Production I
- Short Run production Function
- Total, average and marginal product curves; interrelationships
- Law of returns to variable factor
- Stages of Production and Rational production decision
9.00
Unit V:
Theory of Production II
- Long Run production Function
- Isoquants, Isocost lines and Producer’s equilibrium;
- Expansion Path and Ridge Lines;
- Law of Returns to scale
Essential Readings:
Ahuja, H.L., Modern Microeconomics: Theory & Applications, S. Chand & Company, 19th Edition, 2022.
References:
1. Koutsoyiannis, A., Modern Microeconomics, Macmillan, 2nd Edition, 2020.
2. Varian, H.R., Intermediate Microeconomics: A Modern Approach, East-west Press, 8th Edition, 2010.
3. Stonier, A.W. and D.C. Hague, A Textbook of Economics Theory, ELBS and Longman Group, 5th Edition, 2003.
Academic Session:
