·         Nature of the utility function

·         Properties of indifference curves

·         Rate of commodity substitution

·         Maximization of utility

·         Derivation of ordinary and compensated demand functions

                       Different types of utility functions

·         Price, income and cross price elasticities of demand; nature of goods

·         Relationship between elasticity, MR and TR

·          Income and leisure-derivation of labour supply function and its properties

·         Slutsky Equation- Derivation for two commodity case, its elasticity form, Direct and Cross effects, Substitutes and Complements

(All the concepts covered under unit III and unit IV shall be illustrated with the help of Cobb-Douglas production function).

·         Production function – definition and nature

·         Isoquant – definition, slope and MRTS;  Isocost line

·         Optimizing behavior of firm- constrained output maximization, constrained cost minimization and profit maximization

·         Elasticity of substitution – definition and measurement 

·         Homogeneous Production Functions- definition and properties,

·         Linearly homogeneous production function

·          Euler’s theorem

·         Derivation of cost and input demand function from Cobb Douglas Production Function

·         Properties of Cobb-Douglas production Function

·         Perfect Competition - characteristics

·         Short run and long run equilibrium of firm and industry

·         Derivation of supply function

·          Effects of various taxes ,

·         Equilibrium – definition, existence and uniqueness,

·         Stability of equilibrium- static stability and dynamic stability (Cobweb model)