Micro Economics

Paper Code: 
MBA- 222
Credits: 
4.0
Contact Hours: 
40.00
Max. Marks: 
100.00
Objective: 
  • To expose students to basic microeconomic concepts.
  • To provide a method/ approach to help draw correct conclusions/ solve economic problems.
  • To understand, explain and quantify the mechanism by which the total amount of resources possessed by society is allocated among alternative uses.
7.00
Unit I: 
Introduction to Micro Economics

Definition and Nature of Micro Economics, Scope, Importance and Limitations, Basic Economic Concepts of Scarcity, Utility and Equilibrium analysis, Types of Goods – Normal, Giffen, Veblen goods, Nature of commodities – Necessity, Comfort & Luxury.

9.00
Unit II: 
Consumption and Supply Theory

Theory and Law of Demand, Income and Substitution effect in the Demand curve, Individual and Market Demand, Determinants of Demand, Law of DMU & EMU, The Indifference curve theory, Concept of Elasticity of Demand, Types of elasticity of demand, Concept of Demand Forecasting, Methods – Qualitative and Quantitative (basic concepts only), Concept of Consumer Surplus, Supply – Law of Supply, Its determinants and Elasticity of supply

8.00
Unit III: 
Cost and Revenue Analysis

Cost - Concept and Types of Costs, Short Run Cost Analysis - Fixed, Variable, Total, Average and Marginal Cost Curves. Long Run Cost Analysis - Economies and Diseconomies of Scale and Long Run, Revenue Concept – Total, Average and Marginal Revenue Curve

8.00
Unit IV: 
Production Analysis

Concept of Scales of Production, Economies and Diseconomies of Scale, Production Function, Returns to scale, Laws of Returns – The Traditional Approach
Laws of Returns – The Isoquant- Isocost Approach

8.00
Unit V: 
Market Structures

Forms and characteristics of Market Structures – Perfect competition, Imperfect competition, Monopoly, Duopoly, Oligopoly and Monopolistic competition
Price & Output determination under different market structures- Perfect Competition, Monopoly, Monopolistic and Oligopoly

Essential Readings: 
  • M.L. Jhingan, Micro Economic Theory, Vrinda Publications, 2009
  • D.N.Dwivedi, Managerial Economics, Vikas Publishing House, 7th edition
  • D. M. Mithani, Managerial Economics - Theory and Application, 8th edition
References: 
  1. Stonier and Hague, Textbook of Economic Theory, Longman Green and Co., London, 2008
  2. Varshney & Maheswari, Managerial Economics, Sultan Chand & Sons, 2008
  3. S.K.Mishra & V.K.Puri, Indian Economy, Himalaya Publishing House, 2007
  4. C.S. Barla, Managerial Economics, Malik & Co., 2009