Microeconomics –II

Paper Code: 
ECO 401
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

Course Objectives:

The objectives of this course are-

  1. To make the students understand about the concepts of costs and revenue.
  2. To make the students learn about the characteristics of perfect and imperfect markets.
  3. To acquaint the students about the concept of factor pricing.

 

Course Outcomes (COs):

Course

 Outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Paper Code

Paper Title

ECO 401

Microeconomics-II

CO 24: Analyze the firm’s optimizing behaviour.

CO 25: Acquire knowledge of different market forms.

CO 26: Understand the determination of price and output in various forms of markets.

CO 27: Comprehend the determination of factor prices.

Approach in teaching: Interactive Lectures, Discussion,  Case studies.

 

Learning activities for the students:

Presentations, Assignments and Group discussions.

Class activity, Assignments and  Semester end examinations.

 

9.00
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.

 

9.00
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.

 

9.00
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. Ahuja, H.L. Modern Microeconomics: Theory & Applications , S. Chand & Company, New Delhi.

 

References: 
  1. Gould J.P. and C.F. Ferguson, Microeconomic Theory, All India Traveler Book Sellers, Delhi.
  1. Koutsoyiannis, A., Modern Microeconomics, Macmillan.
  1. Varian, H.R., Intermediate Microeconomics: A Modern Approach, East-west Press, New Delhi.
  1. Stonier, A.W. and D.C. Hague , A Textbook of Economics Theory, ELBS and Longman Group, London.

 

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