Microeconomics-I

Paper Code: 
ECO 311
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 
  1. To understand the methodology and approach of economics; and
  2. To understand the behaviour of individual economic units (and their small groups) in a comparative static and partial equilibrium framework.
12.00
Unit I: 
Consumer Theory
  • The consumption decision: preferences and their representation with indifference curves;
  • Budget constraints;
  • Consumer’s optimum choice.
12.00
Unit II: 
Consumer Theory II
  • Price, income and substitution effects;
  • Choice under risk and uncertainty;
  • Revealed preference.
12.00
Unit III: 
Production Theory
  • Production function;
  • Production with one and more variable inputs;
  • Expansion Path and ridge lines;
  • Returns to scale.  
12.00
Unit IV: 
Cost and Revenue
  • Traditional Theory of Cost: Short-run and long-run Costs
  • Modern Theory of Costs
  • Economies and diseconomies of scale;
  • Revenue: Total, average and marginal revenue and their relationships;
  • Relationship between TR, MR, AR and elasticity.
12.00
Unit V: 
Firm Behaviour under Perfect competition
  • Determination of  equilibrium price and output in the short- and long- run;
  • Firm’s and industry’s supply curve
Essential Readings: 
  1. Hal R. Varian, Intermediate Microeconomics: A Modern Approach, W.W. Norton and Company/Affiliated East-West Press (India), 8th edition, 2010. The workbook by Varian and Bergstrom may be used for problems.
  2. 2. C. Snyder and W. Nicholson, Fundamentals of Microeconomics, Cengage Learning (India), 2010.
  3. 3. B. Douglas Bernheim and Michael D. Whinston, Microeconomics, Tata McGraw-Hill (India), 2009.
References: 
  1. H.L. Ahuja, Micro Economic Theory, S. Chand & Company, New Delhi.
  2. Koutsoyiannis, A. (1999), Modern Microeconomics, Macmillan.
  3. Lipsey, R.G. (Latest edition), An Introduction to positive Economics.
  4. Stonier, A.W. and D.C. Hague (1972), A Textbook of Economics Theory, ELBS and Longman Group, London.
  5. Gould J.P. and C.F. Ferguson, Micro Economic Theory, All India Traveler Book Sellers, Delhi.
  6. Salvatore, D., Schaum’s Outline of Theory and Problems of   Microeconomic Theory, McGraw-Hill.
  7. Salvatore, D., Microeconomic Theory, McGraw-Hill.
Academic Session: 
2015-16
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