Microeconomics-II

Paper Code: 
ECO 411
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 
  1. To illustrate the process of determination of equilibrium price and output in different market situations.
  2. To understand the concept used in factor pricing.
12.00
Unit I: 
Monopoly
  • Maximizing Profits; Linear Demand Curve and Monopoly
  • Inefficiency and deadweight loss of Monopoly
  • Monopoly Behaviour: Price Discrimination; Bundling; Two-Part Tarrifs.
12.00
Unit II: 
Monopolistic Competition
  • Monopolistic competition: Determination of equilibrium price and output in the short- and long- run,
  • Product differentiation; excess capacity.
12.00
Unit III: 
Oligopoly
  • Non-Collusive Oligopoly (cournot’s Model, Chamberlin’s Model, ‘Kinked-Demand’ Model
  • Collusive Oligopoly (Cartels and Price Leadership).
12.00
Unit IV: 
Factor Markets
  • Factor pricing in perfectly competitive markets;
  • Factor pricing in imperfectly competitive markets.
  • Collective bargaining; Wage differentials.
12.00
Unit V: 
General Equilibrium, Efficiency and Welfare
  • Attainment of General Equilibrium
  • Efficiency in Exchange and Production
  • Aggregation of Preferences; Social Welfare Functions; Welfare Maximization.
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.
  1. 2. C. Snyder and W. Nicholson, Fundamentals of Microeconomics, Cengage Learning (India), 2010.
  2. 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: 
2016-17
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