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.