|Syllabus Economics: Micro Economics|
Introduction: Meaning, nature, scope, significance and limitations of Micro economics, Ceteris Paribus Use and significance. Concept and equilibrium – Partial and general, Positive and normative economics, managerial economics, Basic concepts wealth, welfare and scarcity, Basic Tools of economic analysis (equations and functions, graphs and diagrams, slopes and intercepts)
Consumers Behaviour and Demand: Marshallian Approach: Equi-marginal utility, law of demand- determinants of demand, Elasticity of demand and its measurement: Price-income and cross and promotional elasticity of demand, consumer’s surplus Hicksian Approach: Indifference curves- properties of IC, consumer’s equilibrium, Price effect, income effect and substitution effect. Derivation of demand from price consumption curve(PCC) Giffen Paradox Samuelson Approach Revealed Preference Theory
Production and Cost Analysis Concept of production function: short and long run- Cobb-Douglass production function. Iso-quants- Iso-cost line- Producer’s equilibrium. Law of variable proportion and laws of returns to scale- Economies of scale- Economics of scope Concepts of costs: Money and real costs, opportunity cost, social cost, private cost, Derivation of short and long run cost curves- learning curve.
Theory of firm Concepts of revenue, Total, Average, Marginal- Relationship between AR, TR, MR under perfect and imperfect competition – AR, MR, and elasticity. Objectives of a firm- Analysis of equilibrium of a firm. TR-TC Approach, MR-MC Approach , Break even Analysis
Market Structure Perfect competition : Features, Short run equilibrium of the firm and industry and long run equilibrium of the firm and industry Monopoly: Features- Short run equilibrium of the monopolist under different cost conditions and long run equilibrium of the monopolist- Discriminating monopoly-Equilibrium under discriminating monopoly- Dumping Monopolistic competition; Features, Equilibrium in the short and long run- wastages under Monopolistic Competition – oligopoly Features.
Pricing Methods and capital budgeting: Pricing methods: Marginal cost pricing- full cost – Multi Product pricing limit pricing Bain’s model Meaning and importance of capital budgeting methods of capital Budgeting Payback Period – Net Present Value