Microeconomics –II

Paper Code: 
ECO 401
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 
  1. To help understand the various concepts of costs and revenue.
  2. To explain the determination of price and output in different market structures - perfect competition, monopoly, monopolistic competition and  oligopoly.
  3. To acquaint the students with the theories 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: Students willanalyze the firm’s optimizing behavior.

CO 25: Students willexamine different market forms like Perfect competition, Monopoly.

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

CO 27: Students willcomprehend 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: 

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

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

 

Academic Session: 
2021-22
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