Micro Economic Theory-I

Paper Code: 
ATG 114
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 Economics:

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: 

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

Academic Year: 
2015-2016
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