Micro Economic Theory I

Paper Code: 
COM 104
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

The objective of this course is to acquaint the students with concepts and techniques used in Micro-Economic theory and to enable them to apply this knowledge in business decision making

7.00
Unit I: 
Micro Econimics :

Meaning and Definition, Types of Micro Economic Analysis. Role of Micro and Macro Economic Analysis in Formulation of Business Policy. Difference and Inter Dependence of Micro and Macro Economics.

10.00
Unit II: 
Utility Approach

Meaning and Definition of Utility. Characteristics of Utility. Measurement of Utility. Total Utility and Marginal Utility. Law of Diminishing Marginal Utility, Law of Equi-Marginal utility, Limitations of Utility approach
Law of Consumer surplus (Marshall’s version)

10.00
Unit III: 
Indifference curve Approach

Meaning, Assumptions, Properties of Indifference curves. Budget Line. Consumer Equilibrium- Price, income and substitution effect. . Giffen’s Paradox.

8.00
Unit IV: 
Law of Demand

Meaning, Determinants, Assumptions of the Law, Elasticity of demand-Meaning, Degree of Elasticity. Income and Cross Elasticity. Measurement of Price Elasticity of Demand.
Law of Supply: Meaning and Determinants

10.00
Unit V: 
Law of Production

Meaning of Production, Law of Variable Proportions, Returns to scale, Production and Equal product curves (Isoquants) Least cost combination

Essential Readings: 

• Somdeo, Business Economics, RBD, Jaipur
• Mathur, N.D, Business Economics, Shivam Publication, Jaipur
• Baumol, W J. Economic Theory and Operations Analysis.3rd ed,New Delhi, Prentice Hall 1996

References: 

• Dwivedi D.N, Managerial Economics, Vikas Publications, Delhi
• Koutsoyiannis, Modern Economics, New York, Macmillan,1991
• Keat Paul G &K.Y.Young, Managerial Economics, Prentice Hall, New Jersey
• Dipsey R.G and Cheystal, Principles of economy, Oxford university Press

Academic Year: 
2017-2018
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