COutlie New 2011 PGP

8/4/2019 COutlie New 2011 PGP

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COURSE PLAN

2011Microeconomics

Facilitator:Dr. Sunil Ashra, Office: Room No. B16, Faculty Block, x - 178

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MICROECONOMICS 2011Microeconomics analysis aim at clarifyinginterrelationships between prices, costs, production and markets, in an integrated manner, generally considered separate from each

other.


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help the executives in determination of

1.best (or optimal) prices,2.minimum costs and

3.optimal level of production- introduces the optimal behaviour of thefirm in different type of market setup. the issue of regulation, especially in the

context of public utilities like electricity,telecommunications, transport etc.


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PADAGOGY: STRUCTURE, &REQUIREMENT

a discussion based course concerning thetheory & analysis of microeconomics

empirical applications using econometrics, applied problems and case studies. Certain aspects of each prescribed chapter will

be considered in class discussions, the chapter content should be regarded as

requisite background preparation besides theHandout

Full preparation is needed before each class.


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Course Outline


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Introduction to microeconomics; its relationshipwith other management disciplines

Theory of the firm, objectives of the firm

Methods of expressing economic relationships-equations, tables and graphs; total, marginal andaverage relationships,

Opportunity Cost, Economic Cost & Profit Elementary demand and supply theory.

Part 1.1:Nature & Scope of Microeconomics


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- Optimization analysis- profit maximization; useof differential calculus in optimisation;multivariate optimisation and constrained

optimisation;

New management tools - benchmarking, TQM,re-engineering, learning organisation etc.

Part 1.2: Optimization Techniques


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2.1 Demand Functions: Individual & market demand,specification of the demand function, factors affectingdemand.

2.2 Elasticity of Demand - Different concepts & their

measurement; Relationship between price elasticity,total revenue and marginal revenue; using elasticities inmanagerial decision-making.2.3 Utility Theory and Indifference Curve: MRS,PCC, Income CC, Substitution and Income Effects,Engel curves,2.4 Consumer and Producer Surplus:Incidence oftax

Part 2: Demand Analysis


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2.5 Demand Estimation different methods ofdemand estimation; use of econometric methods (&regression analysis) in demand estimation.2.6Demand Forecasting- qualitative methods;quantitative methods.

Part 2: . Demand Estimation &

Forecasting (contd..)


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Part 3: Theory of Production, Cost Concepts,Cost Functions and Estimation

Production Theory Production function SR production function,

- Law of returns to scale and factor;

Production function and isoquants, optimalcombination of inputs for minimising cost;

Long run production function and returns toscale;

Estimation of production functions.


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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, variablecost

- Estimation of cost functions.


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Mid-TermExamination

August 2011


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Part 4: Market Structure

- Pricing under perfect competition:Assumptions, short-run equilibrium of the firmand market; long-run equilibrium,determination of price, profit maximization

- Pricing under Monopoly: Pure anddiscriminating monopoly; Monopsony- Pricing under Oligopoly: Duopoly,

- Game theory and strategic behaviour

- Pricing under Monopolistic Competition


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Part 5: Pricing Practices

- Pricing practices and Role of Government in

pricing: Peak load pricing, Pricing of joint products Transfer Pricing Tying & Bundling Two part tariff

Regulatory issues. Natural Monopoly, Average Cost pricing (Cost-plus pricing), Marginal Cost pricing,


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Case Study Assignments

Everyone will be supposed to present and writean assignment based on the CASE STUDY given.

DEADLINESDeadlines should be strictly followed for all theassignments. Any late submission will result in

negative marking.


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Assignments 10%Case Study 10%Mid-Term Exam 30%

In class Quizzes 20%1. economic principles2. problem solving

3. interpret analytical and empirical results.End-Term Exam 30%

GRADINGWeight


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Requirements and Preparation

for Course Some calculus

Text and class discussion willpresent alternative treatmentsof most course material.

Exams will use some calculus.

Documents

COutlie New 2011 PGP