Elementary Micro Economics

For BA GENERAL Course of DIBRUGARH, GUWAHATI UNIVERSITY & other Indian University

ELEMENTARY MICROECONOMICS

[Based on the syllabi of Dibrugarh University and Gauhati University (Non –Major course) Microeconomics]

Preface

 

Introduction to Economics

• Microeconomics vs. Macroeconomics
• Definition and scope of microeconomics
• Meaning of Scarcity and Choice.
• Positive Microeconomics vs. Normative Microeconomics
• Types of Microeconomic Analysis
• Objectives of Microeconomic Policy.
• Economic models in microeconomics
• Concept of Equilibrium
  • Stable and unstable
  • Static
  • comparative static
  • dynamic

Questions for Review

2. • Consumer’s behaviour
   • Concept of Demand, Demand Schedule, Demand Function and Law of Demand
   • Individual and Market Demand and Supply
   • Concept of Supply, Supply Schedule, Function and Law of Supply
   • Market Equilibrium
   • Impact of Changes in Demand and Supply

 Questions for Review

3. • Utility Analysis : Introduction
   • Approaches To Utility Analysis: Cardinal and Ordinal Utility
   • The Cardinal Utility theory
   • Equilibrium of the Consumer
   • Law of diminishing marginal utility

Questions for Review

 

 

4. • The Indifference Curve Theory
   • Significance of Indifference Curves
   • Properties of the Indifference Curves
   • Marginal Rate of substitution
   • Equilibrium of Consumer
   • Income effect
   • Substitution effect
   • Price effect
   • Derivation of Demand curve

 

Questions for Review

 

5. • Elasticity of demand
   • Price elasticity of Demand
   • Income elasticity of Demand
   • Cross elasticity of Demand
   • Point and Arc elasticities of Demand

Questions for Review

6. • Producer’s behavior
   • Cost and Revenue Analysis
   • Law of Variable proportions
   • Returns to Scale
   • Iso-quant
   • Iso-cost
   • Least Cost Combination
   • Expansion path

7. • Cost of Production
   • Understanding the different concepts of cost
   • Behaviour of costs
   • Different Concepts of Cost and their interrelation
   • Short run AC Curves
   • Long run AC Curves
   • Economies and diseconomies of scale

  Questions for Review

8. • The Concepts of Total Revenue Average Revenue Marginal Revenue
   • Marginal Revenue and Marginal Cost in determining Equilibrium of a Firm.

Questions for Review

 

9. • The Theory of Firm
   • Equilibrium Conditions of a Firm
   • Perfect Competition  Meaning Assumptions
   • Equilibrium of firm and industry in the Short-Run
   • Equilibrium of firm and industry in the Long-Run
   • Normal and Super-Normal Profits
   • Derivation of Supply curve

Questions for Review

1. • Monopoly: Meaning ,
   • Characteristics of Monopoly
   • Sources of Monopoly
   • Kinds of Monopoly
   • Price and output determination under Monopoly
   • Monopoly and Supply Curve
   • Comparison between Monopoly equilibrium and Perfectly competitive equilibrium
   • Price Discrimination
   • Conditions for Price discrimination
   • Degrees of price discrimination
   • Equilibrium under Price Discrimination

Questions for Review

1. • Monopolistic Competition : Meaning
   • Assumption and features of monopolistic competition
   • Price and output determination under   Monopolistic Competition
   • Selling Cost in Monopolistic competition

Questions for Review

2. • Oligopoly Meaning and  Assumptions
   • Types of Oligopoly
   • Features of Oligopoly
   • Kinked Demand Curve
   • Oligopoly Equilibrium
   • Cartel and Price Leadership

Questions for Review

3. • Theories of Distribution
   • Marginal Productivity theory of Distribution
   • Factor Pricing
     • Wage determination under perfect competition
     • Wage determination under Monopsony
     • Wage determination under bilateral monopoly

Questions for Review

4. • Ricardian theory of Rent
   • Transfer Earnings
   • Economic Rent
   • Differential Rent
   • Quasi-Rent

Questions for Review

5. • Introduction
   • The abstinence or waiting theory of interest
   • Bohm-Bawerk’s view of interest
   • Fisher’s theory
   • The loanable funds theory
   • Liquidity Preference Theory

Questions for Review

6. • The Concept of Profit
   • Theories of Profit

Questions for Review