Micro Economics Theory II

Paper Code: 
FSG 214
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

The objective of this course is to give in-depth knowledge of different cost concepts, price & output determination under different markets situations, also acquaint knowledge regarding different theories of interest and Profit.

 

Course Outcome(COs):

Course

Learning Outcome

 (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

FSG 214

Micro Economics Theory II

CO58   Student will explore different types of costs involved in production and revenue generation of the producers.

CO59     Student will interpret General theory of price determination and compare the price and output determination of different market structures.

CO60     Student will examine price and output determination in monopoly and oligopoly markets.

CO61     Student will explore the concept of factor pricing and determination of rent in economics.

CO62     Student will evaluate the role of   different theories of interest and Profits in economics.

Approach in teaching: Interactive Lectures, Discussion, Tutorials, Practical cases Demonstration, Power point presentation.    

 Learning activities for the students:                              Self learning assignments, Effective questions, Seminar presentation, Live practical problems analysis

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects, Case Study Analysis

 

 

 

 

 

 

 

 

 

 

8.00
Unit I: 
Cost Analysis:

• Real cost, Opportunity cost,
• Money cost, Explicit and Implicit cost.
• Short run cost curves and Long run cost curves
• Revenue analysis: Concept & Types,
• Revenue under different market conditions

10.00
Unit II: 
General theory of price Determination

• Equilibrium of Demand and supply,
• Effects of change in demand and supply on price.
• Price and Output Determination under different markets:
• Perfect and Imperfect Competition

9.00
Unit III: 
Price and Output determination under:

• Monopoly, Discriminating Monopoly, Dumping and Oligopoly

9.00
Unit IV: 
Factor Pricing

Unit IV: Factor Pricing
• Factor Pricing in a perfect market,
• Factor Pricing in an imperfect market.
• Marginal Productivity Theory of Distribution.
• Determination of Rent: Economic Rent Vs. Contract Rent,
• Ricardian theory & Modern theory of Rent.

9.00
Unit V: 
Determination of Interest- and Determination of Profit

• Types of interest, Liquidity theory,
• Modern theory of interest
• Determination of Profit- Concept of profit,
• Marginal Productivity theory of profit,
• Modern theory of profit

Essential Readings: 

• Somdeo, Business Economics, RBD, Jaipur
• Mathur. N.D, Business Economics, ShivamPublications, Jaipur
• Dwivedi D.N, Managerial Economics, Vikas Publications, Delhi

References: 

Jain, Khanna and Tiwari, Modern business Economics, V.K.Enterprises, New Delhi
Koutsoyiannis, Modern Economics, New York, Macmillan,1991
Dipsey R.G and Cheystal, Principles of economy, Oxford University Press
Keat Paul G &K.Y.Young, Managerial Economics, Prentice-Hall, New Jersey

Academic Year: 
2021-2022
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