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.

Course

Learning Outcome

 (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

COM 104

Micro Economic Theory I
  1. Students will explore the role of micro economics in business decisions and interpret the Inter Dependence of Micro and Macro Economics.
  2.  Students will examine the utility approach and also comprehend the concept of consumer surplus.
  3. Students will evaluate the concept of indifference curve and budget line for making consumer choices in different situations.
  4. Students will analyse the law of demand and develop the understanding of various types of elasticity of demand.
  5. Students will analyse law of supply and law of production for  the decision making of the producers

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

 

7.00
Unit I: 
Introduction to Economics

Central problems of the economy,
• Concept & definition of microeconomics &macro economics,
• Scope of microeconomics,
• 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.

9.00
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)

9.00
Unit III: 
Indifference curve Approach

Meaning, Assumptions,
• Properties of Indifference curves,
• Budget Line,
• Consumer Equilibrium, Price,
• income and substitution effect.

11.00
Unit IV: 
Law of Demand

Law of Demand
• Meaning, Determinants,
• Assumptions of the Law of demand,
• Exceptions of Law.
Elasticity of demand-
• Meaning, Degree of Price Elasticity.
• Income and Cross Elasticity,
• Methods of Measurement of Price Elasticity of Demand.
• Percentage, Total outlay, Point, Arc method.
Demand forecasting
• concept, methods

9.00
Unit V: 
Law of Supply

Meaning and Determinants
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
• Dwivedi D.N, Managerial Economics, Vikas Publications, Delhi
• Keat Paul G &K.Y.Young, Managerial Economics, Prentice-Hall, New Jersey

References: 

Baumol, W J. Economic Theory and Operations Analysis.3rded, New Delhi, Prentice Hall
Dipsey R.G and Chrystal, Principles of economy, Oxford University Press
Koutsoyiannis, Modern Economics, New York, Macmillan,1991

Academic Year: 
2021-2022
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