Micro Economics for Business

Week Number

Title of the Module

1.       

·         Nature and Scope of Micro Economics

·         Demand and Supply

·         Concepts of revenue: marginal and Average:

·         Elasticity of demand: price, income and cross.

2.        

·         Elasticity of Supply

·         Consumer Behaviour: Indifference curve analysis of consumer behavior;

·         Budget Line

·         Consumer’s equilibrium (Utility approach).

·         Consumer’s equilibrium (Indifference Curve approach).

3.        

·         Price elasticity and price consumption curve

·         Income consumption curve and Engel curve, price change and income and substitution effects.

·         Marginal Utility Theory

·         Revealed Preference Theory.

4.        

·         Production isoquants,

·         marginal rate of technical substitution, economic region of production,

·         optimal combination of resources, the expansion path,

5.       

·         Isoclines,

·         Returns to scale using isoquants.

·         Cost of Production: Social and private costs of production,

6.       

·         Long run and short run costs of production.

·         Economies and diseconomies of scale and the shape to the long run average cost.

·         Learning curve and economies of scope.

7.       

·         Perfect competition: Assumptions.

·         Equilibrium of the firm and the industry in the short and the long runs,

·         Industry’s long run supply curve.

8.       

·         Measuring producer surplus under perfect competition.

·         Demand - supply analysis including impact of taxes and subsidy.

·         Monopoly: Monopoly short run and long run equilibrium.

9.       

·         Shifts in demand curve and the absence of the supply curve.

·         Price and Output decision in Monopoly market

·         Horizontal and vertical integration of firms. And The social costs of monopoly power including deadweight loss

·         Degrees of price discrimination.

10.   

·         Monopolistic Competition and Oligopoly:

·         Monopolistic competition price and output decision-equilibrium.

11.   

·         Rent- Concept, Ricardian and Modern Theories

·         Interest- Concept and Theories of Interest

12.   

·         Theories of Wages

·         Profit- Nature, Concept and Theories of Profit