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2011 Microeconomics
Facilitator: Dr. Sunil Ashra, Office: Room No. B16, Faculty Block, x - 178
MICROECONOMICS 2011
Microeconomics analysis aim at clarifying interrelationships between prices, costs, production and markets, in an integrated manner, generally considered separate from each other.
1.best (or optimal) prices, 2.minimum costs and 3.optimal level of production
- introduces the optimal behaviour of the firm in different type of market setup. the issue of regulation, especially in the context of public utilities like electricity, telecommunications, transport etc.
Course Outline
Theory of the firm, objectives of the firm Methods of expressing economic relationshipsequations, tables and graphs; total, marginal and average relationships, Opportunity Cost, Economic Cost & Profit Elementary demand and supply theory.
2.3 Utility Theory and Indifference Curve: MRS, PCC, Income CC, Substitution and Income Effects, Engel curves, 2.4 Consumer and Producer Surplus: Incidence of tax
Production function and isoquants, optimal combination of inputs for minimising cost;
Long run production function and returns to scale; Estimation of production functions.
Part 3: Theory of Production, Cost Concepts, Cost Functions and Estimation (contd..)
Cost Theory - Types of costs, short-run cost, long run costs functions Marginal cost, average cost, fixed cost, variable cost - Estimation of cost functions.
Mid-Term Examination
August 2011
Regulatory issues.
Natural Monopoly, Average Cost pricing (Cost-plus pricing), Marginal Cost pricing,
GRADING
Weight
Assignments 10% Case Study 10% Mid-Term Exam 30% In class Quizzes 20%
1. economic principles 2. problem solving 3. interpret analytical and empirical results.
Requirements and Preparation for Course Some calculus Text and class discussion will present alternative treatments of most course material. Exams will use some calculus.