Micro Economics for Business

Week Number

Title of the Module

1.

· Nature and Scope of Micro Economics

· Demand and Supply

· Elasticity of demand: price, income and cross.

· Concepts of revenue: marginal and Average

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