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SYLLABUS
Micro Economics

Objectives: To expand the students' knowledge in the field of microeconomics and to make them ready to analyze real
economic situations.

Sr. No. Topics
1. Basic concepts and principles: Definitions and scope; types of economic analysis;
managerial economics; economic principles relevant to managerial decision.

2. Demand and Supply Analysis: Introduction; Demand: Law of demand; shift and movement;
exceptions of the law of demand, Law of supply: shift and movements. Market Equilibrium,
Elasticity of demand: introduction; price, income and cross elasticity.

3. Consumer preference and choice: Utility Analysis; Indifference curve analysis; consumer’s
equilibrium: Cardinal & Ordinal; consumer surplus, income, Price & Substitution effect.

4. Production Theory: Types of input; production function; Isocost lines; producer’s
equilibrium; expansion path.

5. Cost concepts: Introduction, kinds of cost, short & long run cost; Linkage between cost,
revenue and output through optimization, Economies of Scale; internal and external

6. Market structure: Perfect competition: Introduction, features, short run & long run
equilibrium. Perfect competition: Existence in Real World

7. Monopoly: Introduction, types; price and output determination in short run & long run.
Economic inefficiency of monopoly.

8. Monopolist Competition: Introduction, features, short run & long run equilibrium,
monopolistic competition and advertising.

9. Oligopoly: Features, Types, Kinked demand curve.

10. Pricing Decisions: Cost based pricing; pricing based on firm’s objective; competition based
pricing.