3 3##
Edited by: Dr.Tanima Dutta
MICRO ECONOMICS Edited By Dr. Tanima Dutta Printed by EXCEL BOOKS PRIVATE LIMITED A-45, Naraina, Phase-I, New Delhi-110028 for Lovely Professional University Phagwara SYLLABUS Micro Economics
Objectives: To expand the students' knowledge in the field of microeconomics and to make them ready to analyze real economic situations.
Sr. No. Topics
1. Basic concepts and principles: Definitions and scope; types of economic analysis; managerial economics; economic principles relevant to managerial decision.
2. Demand and Supply Analysis: Introduction; Demand: Law of demand; shift and movement; exceptions of the law of demand, Law of supply: shift and movements. Market Equilibrium, Elasticity of demand: introduction; price, income and cross elasticity.
3. Consumer preference and choice: Utility Analysis; Indifference curve analysis; consumer’s equilibrium: Cardinal & Ordinal; consumer surplus, income, Price & Substitution effect.
4. Production Theory: Types of input; production function; Isocost lines; producer’s equilibrium; expansion path.
5. Cost concepts: Introduction, kinds of cost, short & long run cost; Linkage between cost, revenue and output through optimization, Economies of Scale; internal and external
6. Market structure: Perfect competition: Introduction, features, short run & long run equilibrium. Perfect competition: Existence in Real World
7. Monopoly: Introduction, types; price and output determination in short run & long run. Economic inefficiency of monopoly.
8. Monopolist Competition: Introduction, features, short run & long run equilibrium, monopolistic competition and advertising.
9. Oligopoly: Features, Types, Kinked demand curve.
10. Pricing Decisions: Cost based pricing; pricing based on firm’s objective; competition based pricing.
CONTENT
Unit 1: Basic Concepts of Economics 1 Dilfraz Singh, Lovely Professional University
Unit 2: Demand Analysis 13 Tanima Dutta, Lovely Professional University
Unit 3: Supply and Market Equilibrium 27 Dilfraz Singh, Lovely Professional University
Unit 4: Elasticity of Demand 44 Tanima Dutta, Lovely Professional University
Unit 5: Consumer Behaviour: Cardinal Approach 57 Dilfraz Singh, Lovely Professional University
Unit 6: Consumer Behaviour: Ordinal Approach 67 Tanima Dutta, Lovely Professional University
Unit 7: Production Theory 84 Dilfraz Singh, Lovely Professional University
Unit 8; Laws of Production 102 Tanima Dutta, Lovely Professional University
Unit 9: Cost Concepts 116 Ashwani Panesar, Lovely Professional University
Unit 10: Market Structure – Perfect Competition 141 Pavitar Parkash Singh, Lovely Professional University
Unit 11: Monopoly 162 Ashwani Panesar, Lovely Professional University
Unit 12: Monopolistic Competition 177 Pavitar Parkash Singh, Lovely Professional University
Unit 13: Oligopoly 193 Ashwani Panesar, Lovely Professional University
Unit 14: Pricing Decisions 220 Pavitar Parkash Singh, Lovely Professional University Dilfraz Singh, Lovely Professional University Unit 1: Basic Concepts of Economics
Unit 1: Basic Concepts of Economics Notes
CONTENTS Objectives Introduction 1.1 Defi nition of Economics 1.2 Scope of Economics 1.3 Types of Economics and its use in Managerial Decisions 1.3.1 Economics and Managerial Decision-making 1.3.2 Central Problems of an Economy 1.4 Summary 1.5 Keywords 1.6 Self Assessment 1.7 Review Questions 1.8 Further Readings
Objectives
After studying this unit, you will be able to: