Microeconomics syllabus

Microeconomics

• 1 Introduction to Microeconomics (3 LHs)

  • Meaning, scope, types and uses
• 2 Theory of Demand and Supply (6 LHs)

  • Demand function and demand-curve shifts
  • Supply function and supply-curve shifts
  • Price, income and cross elasticity of demand
  • Price elasticity of supply
  • Elasticity measurement and business uses
• 3 Theory of Consumer's Behaviour (8 LHs)

  • Cardinal versus ordinal utility
  • Indifference curves, MRS and consumer equilibrium
  • Price, income and substitution effects
  • PCC, ICC, demand and Engel curves
  • Tax, subsidy and income-leisure applications
• 4 Theory of Production (7 LHs)

  • Total, average and marginal product
  • Short- and long-run production functions; Cobb-Douglas
  • Law of variable proportions
  • Isoquants, MRTS and least-cost input combination
  • Returns to scale
• 5 Cost and Revenue Curves (8 LHs)

  • Cost functions and opportunity, explicit, implicit, accounting and economic costs
  • Short-run total, average and marginal costs
  • Long-run cost curves
  • Revenue in perfect and imperfect competition
  • TR, AR, MR and price elasticity
• 6 Theory of Product Pricing (10 LHs)

  • Profit maximization by TR-TC and MR-MC
  • Perfect competition: firm and industry equilibrium
  • Monopoly equilibrium and price discrimination
  • Monopolistic competition equilibrium
  • Oligopoly concept and characteristics
• 7 Theory of Factor Pricing (6 LHs)

  • Modern theory of rent
  • Marginal productivity theory of wages
  • Loanable-funds and liquidity-preference interest theories
  • Dynamic and innovation theories of profit