MICRO ECONOMICS

Course Code Marks: 100 Credits: 4 Class Hours: 60
Course Title MICRO ECONOMICS
1. The Fundamentals of Economics: Scarcity and Efficiency-The Twin Themes of Economics-
The Logic of Economics-The Three Problems of Economic Organization: Market, Command,
and Mixed Economies-Society’s Technological possibilities: Inputs and Outputs-The
Production Possibility Frontier.
2. Markets and Government in a Modern Economy: The Mixed Economy-What is a
Market?-Trade, Money and Capital-The Economic Role of Government.
3. Basic Elements of Supply and Demand: The Demand Schedule: The Demand Curve-The
Supply Schedule: The Supply Curve-Equilibrium of Supply and Demand.
4. Applications of Supply and Demand: Price Elasticity of Demand and Supply: Price
Elasticity of Demand, Elasticity and Revenue, Price Elasticity of Supply-Applications to
Major Economic Issues.
5. Demand and Consumer Behavior: Choice and Utility Theory-Equimarginal Principle-
Substitution Effect and Income Effect-Consumer Surplus-The Indifference curve & Budget
Line-Deriving the Demand Curve.
6. Production and Business Organization: Theory of Production and Marginal Products: Basic
Concepts Returns to Scale-Short Run and Long Run, Technological Change, Productivity and
the Aggregate Production Function-Business Organizations: The Nature of the Firm; Big,
Small, and Infinitesimal Businesses.
7. Analysis of Costs: Economic Analysis of Costs-Economic Costs and Business Accounting-
Opportunity Costs-Production, Cost Theory and Decisions of Firm.
8. Analysis of Perfectly Competitive Markets: Supply Behavior of the Competitive Firm-
Supply Behavior in Competitive Industries-Special Cases of Competitive Markets-Efficiency
and Equity of Competitive Markets.
9. Imperfect Competition and Monopoly: Patterns of Imperfect competition-Marginal
Revenue and Monopoly.
10. Oligopoly and Monopolistic Competition: Behavior of Imperfect Competitors-Innovation
and Information-A Balance Sheet on Imperfect Competition.
11. How Markets Determine Incomes: Income and Wealth-Input Pricing by Marginal
Productivity.
12. The Labor Market: Fundamentals of Wage Determination-Labor Market Issues and
Policies.
13. Land and Capital: Land and Rent-Capital and Interest-Markets and Economic Efficiency.

Book Recommended:
Paul A. Samuelson & William D. Nordhaus, Economics, McGraw Hill, 18th Edition.
Reference Books:
1. H. L. Ahuja, Modern Microeconomic Theory: Theory and Application, Published by S. Chand
and Company Ltd.
2. K. K. Dewett, Modern Economic Theory, S. Lal Charitable Trust, New Delhi.