Micro Economics for Business

Micro Economics is a tool to understand the working and governance of an economy. Micro Economics is a branch of Economics which deals with the behavior of an individual in an economy. Whereas Micro-economics for Business enlighten the learners about the role of micro-economics in Business. This describe the demand and supply of goods and services in an economy, derivation of consumer’s equilibrium, production and consumption function, and different types of economy. Study of economics help the decision maker to answer two most important questions vis-à-vis, scarcity of resources and multiplicity of demands. This course will help the learners to understand the concepts with the help of video-lectures, self-learning material, and tools for self-assessments.

Week Number

Title of the Module

1.

· Nature and Scope of Micro Economics

· Demand and Supply

· Elasticity of demand: price, income and cross.

· Concepts of revenue: marginal and Average

2.

· Elasticity of Supply

· Consumer Behaviour: Indifference curve analysis of consumer behavior;

· Budget Line

· Consumer’s equilibrium (Utility approach).

· Consumer’s equilibrium (Indifference Curve approach).

3.

· Price elasticity and price consumption curve,

· Income consumption curve and Engel curve, price change and income and substitution effects.

· Marginal Utility Theory

· Revealed Preference Theory.

4.

· Production isoquants,

· marginal rate of technical substitution, economic region of production,

· optimal combination of resources, the expansion path,

5.

· Isoclines,

· Returns to scale using isoquants.

· Cost of Production: Social and private costs of production,

6.

· Long run and short run costs of production.

· Economies and diseconomies of scale and the shape to the long run average cost.

· Learning curve and economies of scope.

7.

· Perfect competition: Assumptions.

· Equilibrium of the firm and the industry in the short and the long runs,

· Industry’s long run supply curve.

8.

· Measuring producer surplus under perfect competition.

· Demand - supply analysis including impact of taxes and subsidy.

· Monopoly: Monopoly short run and long run equilibrium.

9.

· Shifts in demand curve and the absence of the supply curve.

· Price and Output decision in Monopoly market

· Horizontal and vertical integration of firms. And The social costs of monopoly power including deadweight loss

· Degrees of price discrimination.

10.

· Monopolistic Competition and Oligopoly:

· Monopolistic competition price and output decision-equilibrium.

11.

· Rent- Concept, Ricardian and Modern Theories

· Interest- Concept and Theories of Interest

12.

· Theories of Wages

· Profit- Nature, Concept and Theories of Profit