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Microeconomics–II [1]

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.

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 longrun, 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, 19th Edition, 2022.

References: 

1. Koutsoyiannis, A. Modern Microeconomics, Macmillan, 2nd Edition, 2020.

2. Varian, H.R., Intermediate Microeconomics: A Modern Approach, East-west Press, 8th Edition, 2010.

3. Stonier, A.W. and D.C. Hague., A Textbook of Economics Theory, ELBS and Longman Group, 5th Edition, 2003.

Academic Session: 
2022-23 [2]

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Source URL: https://economics.iisuniv.ac.in/courses/subjects/microeconomics%E2%80%93ii

Links:
[1] https://economics.iisuniv.ac.in/courses/subjects/microeconomics%E2%80%93ii
[2] https://economics.iisuniv.ac.in/academic-session/2022-23