Business Economics II

Syllabus

BUSINESS ECONOMICS (MICRO) – II

Course Code -123

Unit-1: Cost and Revenue

Concepts and Types of Cost – Economic Cost and Accounting Cost, Private Cost and Social Cost, Actual Cost and Opportunity Cost, Explicit Cost and Implicit Cost, Incremental Cost and Sunk Cost, Fixed Cost and Variable Cost, Relation between Total Cost, Average Cost and Marginal Cost, Cost Curves in Short-run and Long-run, Concept of Total Revenue, Average Revenue and Marginal Revenue.

Unit-2: Pricing Under Perfect Market Conditions

Pure Competition – Meaning and Features, Features of Perfect Competition, Price Determination in Perfect Competition, Equilibrium of Firm and Industry in Short-Run and Long-Run.

Unit-3: Pricing Under Imperfect Market Conditions

Meaning of Imperfect Competition, Monopoly – Features and Equilibrium, Price Discrimination, Monopolistic Competition Features and Equilibrium, Oligopoly–Concept and Features, Duopoly: Concept and Features, Comparison of Perfect and Imperfect Competition.

Unit-4: Factor Pricing

Marginal Productivity Theory of Distribution, Rent–Meaning, Ricardian Theory of Rent, Modern Theory of Rent, Concept of Quasi Rent, Wages – Meaning and Types of Wages – Minimum Wages, Money Wages, Real Wages, Subsistence Wages, Fair Wages. Backward Bending Supply Curve of Labour, Role of Collective Bargaining in Wage Determination, Interest – Meaning, Loanable Fund Theory, Liquidity Preference Theory, Profit – Meaning, Risk and Uncertainty Theory of Profit,   Dynamic Theory of Profit, Innovation Theory of Profit.