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Ordinal utility approach

Unit 4: Analysis of Consumer's BehaviorTopic 2 of 6
Browse the Microeconomics for Business syllabus

Microeconomics for Business

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What the syllabus expects

  • Assumptions
  • Indifference-curve properties
  • Marginal rate of substitution
  • Price line
  • Consumer equilibrium

Ordinal utility approach

Bachelor of Business Studies (BBS) — First Year

Subject: Microeconomics for Business (MGT 207)

Unit 4: Analysis of Consumer's Behavior

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

  • Explain the scope and key elements of ordinal utility approach.
  • Explain the economic reasoning and use appropriate diagrams or relationships in business analysis.

Curriculum Scope

  • Assumptions
  • Indifference-curve properties
  • Marginal rate of substitution
  • Price line
  • Consumer equilibrium

Detailed Microsyllabus

  1. Ordinal utility foundations

    1. Preference ordering and assumptions.
    2. Indifference curves and their properties.
    3. Marginal rate of substitution.

  2. Consumer equilibrium

    1. Budget or price line and its slope.
    2. Tangency and the affordability constraint.
    3. Explain equilibrium using preferences and the available budget.

Curriculum reference: Tribhuvan University, Faculty of Management, BBS curriculum with first-year syllabus, PDF pages 17-19.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit lecture hours apply to the whole unit; no separate topic hours or marks are assigned here. The programme subject list identifies this course as MGT 207; the detailed subject heading in the source prints MGT 203.