Microeconomics: meaning nature and scope. Basic concepts of economics: Static and
dynamic approaches, equilibrium, utility, opportunity cost, marginal and incremental
principles. Microeconomics and Business.
Theory of demand: Nature of demand for a product, individual demand, market demand,
determinants of demand. Elasticity of demand and its determinants. Demand as
multivariate function.
Theory of Consumer Behavior: Utility analysis, indifference curve analysis, applications
of indifference curves.
Theory of production and costs: The concept of production function, production with one
and two variable inputs, optimal input combination, theory of cost in short run and long
run, revenue function.
Theory of firm and market organization: Breakeven analysis, pricing under perfect
competition, pricing under monopoly, price discrimination, pricing under monopolistic
competition, selling cost, pricing under oligopoly: cournot model, kinked demand curve
and price leadership.