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Microeconomics-II
Paper Code:
ECO 411
Credits:
4
Contact Hours:
60.00
Max. Marks:
100.00
Objective:
- To illustrate the process of determination of equilibrium price and output in different market situations.
- 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:
- 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.
- C. Snyder and W. Nicholson, Fundamentals of Microeconomics, Cengage Learning (India), 2010.
- B. Douglas Bernheim and Michael D. Whinston, Microeconomics, Tata McGraw-Hill (India), 2009.
References:
- H.L. Ahuja, Micro Economic Theory, S. Chand & Company, New Delhi.
- Koutsoyiannis, A. (1999), Modern Microeconomics, Macmillan.
- 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.
- Gould J.P. and C.F. Ferguson, Micro Economic Theory, All India Traveler Book Sellers, Delhi.
- Salvatore, D., Schaum’s Outline of Theory and Problems of Microeconomic Theory, McGraw-Hill.
- Salvatore, D., Microeconomic Theory, McGraw-Hill.
Academic Session:
