Micro Economics Theory

Paper Code: 
AAF 216
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 Outcome (COs):

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

 

 

 

 

AAF 216

 

 

Micro Economic Theory

 

Upon successful completion of this course, the student will be able to:

 

CO 69: Construct introductory knowledge of micro and macroeconomics and understand the Interdependence on each other.

CO 70: Develop an ability to understand comprehend the mechanism of the concept of  utility and indifference curve approach

CO 71: Analyze the concept of the law of demand and its elasticity and also know about the law of supply

CO 72: Evaluate how price and output determined under different market structures are working.

CO 73: Formulate an understanding and acquire knowledge about different concepts of cost and cost curves also learn the functionality of the law of productions.

Approach in teaching:

Interactive Lectures, Discussion, Tutorials, Reading assignments, White board teaching

 

Learning activities for the students:

Self learning assignments, Effective questions, Giving tasks

Written tests, Presentations/ Assignment/Quiz.

 

9.00
Unit I: 
Micro Economics
  • Meaning and Definition, 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. Measurement of Utility. Total Utility and Marginal Utility. Law of Diminishing Marginal Utility.
  • Indifference curve Approach: Meaning, Properties of Indifference curves. Budget Line. Consumer Equilibrium- Price and income effect. Giffen’s Paradox.

 

 

9.00
Unit III: 
Law of Demand
  • Meaning, Assumptions of the Law, Elasticity of demand, Degree of price Elasticity. Measurement of Price Elasticity of Demand.
  • Law of Supply: Meaning and Determinants of supply.
9.00
Unit IV: 
Market
  • Meaning, Assumptions of the Law, Elasticity of demand, Degree of price Elasticity. Measurement of Price Elasticity of Demand.
  • Law of Supply: Meaning and Determinants of supply.
9.00
Unit V: 
Cost Analysis
  • Real cost, Opportunity cost, Money cost, Explicit and Implicit cost. Short run cost curves long run curves.
  • Law of Production- Meaning of Production, Law of Variable Proportions and Returns to scale.
Essential Readings: 
  1. Somdeo, Business Economics, RBD, Jaipur
  2. Mathur, N.D, Business Economics, Shivam Publication, Jaipur
  3. Baumol, W J. Economic Theory and Operations Analysis.3rded,New Delhi, Prentice Hall 1996
  4. Dwivedi D.N, Managerial Economics, Vikas Publications, Delhi
  5. Koutsoyiannis, Modern Economics, New York, Macmillan,1991
  6. Keat Paul G &K.Y.Young, Managerial Economics, Prentice Hall, New Jersey
  7. Dipsey R.G and Cheystal, Principles of economy, Oxford university Press
Academic Year: 
2021-2022
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