Micro Economics-Exchange & Distribution

Syllabus

Micro Economics- Exchange and Distribution

 Unit I

Market: Concept, Classification of Market.

Supply: Meaning and Change in Supply. Factors Affecting the Supply; Supply Elasticity.

Perfect Competition;- Firm and Industry, Assumptions, Equilibrium and Price Determination. Practical Problems.

 Unit II

Monopoly: Assumptions, Equilibrium and Price Determination, Price Discrimination, Degree of Monopoly Power and its Regulation.

 Unit III

Monopolistic Competition: Assumptions/Characteristics, Product Differentiation, Selling Cast. Equilibrium and Price Determination.

Oligopoly Market: Concept and Characteristics, Practical Problems.

 Unit IV

Factor Pricing: Rent: Ricardian Theory, Modern Theory, Quasi Rent. Wages-Subsistence Theory of Wages, Wage Fund Theory, Residual Claimant Theory and Marginal Productivity Theory.

Interest: Classical Theory of Interest, Loanable Funds Theory, Liquidity Preference Theory. Concept of Liquidity Trap.

Profit: Accounting and Economic Profit. Dynamic Theory of Profit. Risk-bearing Theory, Uncertainty Bearing Theory and Innovation Theory. Functions of Profit.