Unit I: Introduction to Microeconomics : 6 hours
Introduction to Economic Theory: Problem of Scarcity, Introduction to Microeconomics and Macroeconomics, Function of Microeconomic Theory, Comparative Statics and Dynamics, Positive and Normative Economics, and Fundamental Principles of Economics.
Unit II: Theory of Consumer Behavior : 10 hours
Meaning and Concept of Demand, Meaning and Concept of Supply, Law of Demand and Supply, Shifts in Demand and Supply, Price Elasticity of Demand, Income Elasticity, Cross Price Elasticity and Price Elasticity of Supply, Determinants of Elasticity, Uses and Importance of Elasticity. Cardinal Approach of Utility, Consumer Equilibrium, Ordinal Approach of Utility, Indifference Curve, Marginal Rate of Substitution, Budget Line, Consumer’s Equilibrium, Application of Ordinal Analysis- Separation of Substitution and Income Effect from Price Effect for Normal, Inferior and Giffen Good.
Unit III: Production and Cost : 8 hours
Short Run and Long Run Production Functions: Law of Variable Proportions, Law of Returns; Optimal Input Combination; Classification of Costs; Short Run and Long Run Cost Curves and Interrelationships. Economies of Scale: Internal and External. Revenue Curves: Optimum Size of the Firm, Factors Affecting the Optimum Size.
Unit IV: Market Structures and Pricing : 8 hours
Equilibrium of the Firm and Industry: Perfect Competition, Monopoly, Monopolistic Competition, Monopoly Power, Discriminating Monopoly, Aspects of Non‐price Competition; Meaning of an Oligopolistic Behavior.
Unit V: Theory of Distribution : 8 hours
Input Price and Employment under Perfect Competition and Imperfect Competition. Demand and Supply Curve of a Firm for an Input. Input Pricing under Bilateral Monopoly. Concepts of Wage Differential, Minimum Wage and Brain Drain.