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Microeconomics –II
Paper Code:
ECO 401
Credits:
3
Contact Hours:
45.00
Max. Marks:
100.00
Objective:
- To illustrate the process of determination of equilibrium price and output in different market situations; and
- 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:
- H.L. Ahuja, Micro Economic Theory, S. Chand & Company, New Delhi.
- Seth, M.L., Microeconomics, Laxmi Narayan Agarwal, Agra.
References:
- Gould J.P. and C.F. Ferguson, Micro Economic Theory, All India Traveler Book Sellers, Delhi.
- Koutsoyiannis, A. (1999), Modern Microeconomics, Macmillan.
- Varian, H.R. (2000), Intermediate Microeconomics: A Modern Approach, East-west Press, New Delhi.
- Lipsey, R.G. (Latest edition), An Introduction to positive Economics.
- Stonier, A.W. and D.C. Hague (1972), A Textbook of Economics Theory, ELBS and Longman Group, London.
Academic Session:
