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 Outcomes (COs):

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

 

 

 

 

 

 

 

 

 

 

AAF 216

 

 

 

 

 

 

 

 

 

 

Micro Economic Theory

 

CO 69: Provide introductory knowledge of micro and macro economics and understand the Inter dependence on each other.

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

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

CO 72: Understand insight view about the markets and how price and output determined under different market structures.

CO 73: Acquire knowledge about different concepts of cost and cost curves also learn the functionality of 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: 
Introduction:
  • 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: 
Various Approaches
  • 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: 
Laws of Demand & Supply
  • 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, Characteristics of Market
  • Price and Output determination under: Perfect Competition and Imperfect competition. Discriminating Monopoly.
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.

References: 
  • Somdeo, Business Economics, RBD, Jaipur
  • Mathur, N.D, Business Economics, Shivam Publication, Jaipur
  • Baumol, W J. Economic Theory and Operations Analysis.3rded,New Delhi, Prentice Hall 1996
  • 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.
Academic Year: 
2020-2021
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