Micro Economics Course Guide

COURSE FRAME WORK

PROGRAM

BBA

COURSE CODE & TITLE

15BBA201 MICRO ECONOMICS

SEMESTER

II SEMESTER

Credits for the Course

4 Credits

Total Teaching Hours / Week

4 Hours

2

LEARNING OBJECTIVES

a)

To critically examine the concept of utility dealing with consumer behavior.

b)

To investigate the supply side of the market through production, revenue and cost behavior of the firms.

c)

To analyze and distinguish between various market structures.

3

LEARNING OUTCOMES

After this course, the student will be able to:

a)

Understand rational behavior of consumer through law of diminishing marginal utility and principle of equi-marginal utility.

b)

Apply concepts such as utility analysis, indifference curves, and isoquants to business situations.

c)

Assess features and profit-maximizing equilibrium conditions for perfect and imperfect market structures like monopoly, monopolistic competition.

4.

SYLLABUS OF THE COURSE

Course CODE

Name of the Course

15BBA201

  MICRO ECONOMICS (4 Credits)

Total Teaching Hours:

60 Hours

Module No.

Curriculum Coverage & Topic / Sub Topics

Teaching Hours

1

Introduction to Micro Economics:

 9 Hours

Nature and scope of micro economics; positive & normative - inductive & deductive - statics & dynamics - micro & macro; utility analysis: cardinal- law of diminishing marginal utility - law of equi-marginal utility; ordinal: indifference curve.

2

Demand and Supply:

 13 Hours

Demand: meaning - individual demand & market demand schedule - law of demand; determinants - shift in demand - extension & contraction - exceptions (Geffen’s paradox); elasticity of demand: meaning – types – factors - measurement; demand forecasting: methods - criteria; supply: law of supply – shifts – determinants - elasticity of supply.

3

Costs, Revenue and Production:

 12 Hours

Cost: total cost (total fixed costs & total variable costs) - average cost - marginal cost (short run & long run); revenue: total revenue - average revenue - marginal revenue (short period & long period); production: law of variable proportions (increasing, decreasing & constant) - scale of production - economies & diseconomies of scale; isoquants & production maximization.

4

Market structure:

 13 Hours

Market structure: perfect competition – features - determination of equilibrium price & output – time element;imperfect competition: monopoly – features - determination of equilibrium price & output (short period & long period); duopoly: features; oligopoly: features - price rigidity - kinked demand curve; monopolistic competition: features - product differentiation - determination of price and output (short period and long period).

5

Factor Pricing:

 13 hours

Factor pricing: land - theories (Ricardian theory, transfer earnings theory) – quasi rent; wages:marginal productivity theory of wages; interest: classical theory - loanable fund theory - liquidity preference theory - IS&LM curve; profit:uncertainty & risk bearing theory – innovations theory.

5.

STUDY MATERIALS

Text Books

Economics, P A Samuelson &Nordhouse, McGraw Hill.

Micro economics, M L Seth, Lakshmi Narain Agarwal publisher, Agra.

Modern Microeconomics - Theory & Applications, Ahuja, Sultan Chand Publications, New Delhi

Managerial Economics, H. L. Ahuja, S Chand publication, New Delhi.