Micro Economics Theory – I

Paper Code: 
AAF 116
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: 

Dwivedi D.N, Managerial Economics, Vikas Publications, Delhi
 Koutsoyiannis, Modern Economics, New York, Macmillan,1991
 Keat Paul G &K.Y.Young, Managerial Economics, Prentice Hall, New Jersey
 Dipsey R.G and Cheystal, Principles of economy, Oxford university Press

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