Economics4th Sem

B.A. Economics

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B.A. Economics

4th Semester Syllabus

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MJC-5 : Intermediate Microeconomics 1

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Unit 1: Ordinal Utility Analysis
Concept
Assumptions
Tools: Indifference curve and Budget line
Income effect
Substitution effect and price effect for normal and inferior goods
Slutsky equation and Hicksian Substitution effect
Revealed preference theory
Deriving demand theorem from the Revealed Preference Hypothesis and critical appraisal of Revealed Preference Hypothesis
Revision of Demand Theory: weak and strong ordering
Recent development in Demand Theory
Unit 2: Production, Costs and Revenue Analysis
Production with one and more variable inputs
Law of variable proportion
Returns-to-scale
Optimum factor combination
Production possibility curve
Elasticity of substitution
Traditional and Modern approaches to cost
Behaviour of Cost and Revenue curves under different market conditions
Internal and external economies and diseconomies of scale
Concept
Assumptions
Characteristics and types of Production function with examples
Estimation and their applications: Homogeneous
Linear Homogenous and Cobb-Douglas Production Function
Production function and technological change
Unit 3: Perfect Competition and Monopoly
Review of perfect competition: features
Price and output determination under perfect competition in short and long run
Total and marginal approach
Monopoly: features
Conditions for existence of monopoly
Price and output determination under monopoly
Measurement of the degree of monopoly power
Pricing with market power
Price discrimination
Government policies towards monopoly and competition
Reference Books:
  • Hal R. Varian, Intermediate Microeconomics, a Modern Approach, W.W. Norton and Company/Affiliated East-West Press (India), 8th edition, 2010. The workbook by Varian and Bergstrom may be used for problems.
  • C. Snyder and W. Nicholson, Fundamentals of Microeconomics, Cengage Learning (India), 2010.
  • B. Douglas Bernheim and Michael D. Whinston, Microeconomics, Tata McGraw-Hill (India), 2009