Business Economics (Micro) Major BBA First Sem Makaut

Module

No.

Name of The Topic

Hours

Marks

M1

Introduction: Basic Problems of an Economy, Working of Price Mechanism and Resource Allocation, Production Possibility Curve; Opportunity Cost

4

4

M2

Basic Elements of Demand and Supply: Demand- Meaning, Demand Schedule, Individual and Market Demand Curve, Determinants of Demand, Law of Demand,

Changes in Demand; Supply- Meaning, Supply Schedule, Individual and Market Supply Curve, Determinants of Supply, Law of Supply, Changes in Supply; Equilibrium of Demand and Supply, Determination of Equilibrium Price and Quantity, Effect of a shift in Demand or Supply;

Elasticity of Demand and Supply: Elasticity of Demand: Concept and Measurement of Elasticity of Demand, Price, Income and Cross Elasticities; Average Revenue: Marginal Revenue, and Elasticity of Demand, Determinants of Elasticity of Demand.

10

15

M3

Theory of Consumer Behaviour: Cardinal Utility Approach-Law of Diminishing Marginal Utility, Law of Equi-Marginal Utility; Indifference Curve Approach Indifference Curves, Properties of Indifference Curves, Budget Line, Consumer’s Equilibrium

8

10

M4

Production Function: Law of Variable Proportions, Ridge Lines. Isoquants, Economic Regions and Optimum Factor Combination. Expansion Path, Returns of Scale, International and External Economies and Diseconomies of Scale.

Theory of Costs: Short-Run and Long Run Cost Curves – Traditional Approaches Only.

10

15

M5

Market Structures

Perfect Competition: Characteristics, Profit Maximization and Equilibrium of Firm and Industry, Short- Run and Long Run Supply Curves, Price and Output Determination, Practical Applications. Monopoly: Characteristics, Determination of Price under monopoly, Equilibrium of a Firm, Comparison Between Perfect Competition and Monopoly, Price Discrimination, Social Cost of Monopoly Monopolistic Competition: Meaning and Characteristics, Price and Output Determination Under Monopolistic Competition, Product Differentiation, Selling Costs, Comparison with Perfect Competition, Excess Capacity Under Monopolistic Competition.
Oligopoly: Characteristics, Indeterminate Pricing and Output, Cournot Model of Oligopoly, Price Leadership (Only Meaning and Characteristics) Collusive Oligopoly (Meaning and Characteristics Only), Only Kinked Demand Curve Model of Oligopoly.

12

10

M6

Factor Pricing: Marginal Productivity Theory and Demand for Factors (Statement and assumption only). Concept of Rent: Ricardian and Modern Theories of Rent; Quasi-Rent Concept of Labour: Wage Rate, Nominal Wage, Real Wage. Concept of Capital: Gross Interest, Net Interest, Zero Interest Rate. Concept of Profit: Pure Profit, Normal Profit, Abnormal Profit.

6

5