Perfect competition

Perfect competition

Bachelor of Business Studies (BBS) — First Year

Subject: Microeconomics for Business (MGT 207)

Unit 7: Product Pricing Theories and Practices

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of perfect competition.
• Explain the economic reasoning and use appropriate diagrams or relationships in business analysis.

Curriculum Scope

• Short-run and long-run price-output equilibrium
• Short-run supply curves of firms and industries

Detailed Microsyllabus

1. Competitive firm equilibrium

   1. Price-taking behavior and the firm's demand curve.
   2. Short-run output choice, profit, loss and shutdown conditions.
   3. Long-run adjustment through entry and exit.

2. Supply and market outcomes

   1. Short-run firm supply under the standard cost conditions.
   2. Industry supply through aggregation of firms.
   3. Price and output equilibrium in the market.

---

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.