Economics5th Sem

B.A. Economics

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B.A. Economics

5th Semester Syllabus

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MJC-8 : Intermediate Microeconomics 2

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Unit 1: Imperfect Markets
Imperfect markets: Common features
Price and output determination in monopolistic competition
Various approaches to price and output determination under Oligopoly-classical models of oligopoly: duopoly Cournot Model
Collusive oligopoly: cartel and price leadership
Basic idea of kinked demand curve
Unit 2: Distribution Theory (Pricing of Factors)
Concepts of factor productivity
Marginal Revenue Product (MRP) and Value of Marginal Product (VMP)
Pricing of factors in perfect and imperfect market
Marginal productivity theory of distribution
Euler's theorem
Theories of rent
Interest and profit
Unit 3: General Equilibrium, Efficiency and Welfare
Concept of Partial and General Equilibrium
Welfare concept
Walrasian General Equilibrium
Concept and conditions of Pareto Optimality
Perfect competition and Pareto Optimality
Externalities in production and consumption
Public Goods
Concept and causes of market failure
Correction of market failure
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
  • A. Ahsan, C. Pages and T. Roy, 2008, "Legislation, Enforcement and Adjudication in Indian Labour Markets: Origins, Consequences and the Way Forward, in D. Mazumdar and S. Sarkar, editors, Globalization, Labour Markets and Inequality in India, Routledge.
  • Dipak Mazumdar and Sandeep Sarkar, 2009, "The Employment Problem in India and the Phenomenon of the Missing Middle, Indian Journal of Labour Economics.
  • J. Dennis Rajakumar, 2011, "Size and Growth of Private Corporate Sector in Indian Manufacturing, Economic and Political Weekly, April.