LNMIIT Course Information Form

Title of the course: Micro EconomicsCategory: HSS ElectiveIf Program Elective, which stream(s): Open to all streamsTarget Audience: IIIrd yearPre-requisites: None Total contact hours: Lectures / Tutorials: 40 Total number of credits: 03

Proposed Curriculum:Unit I: Introduction to Micro EconomicsOverview of Economics, Micro Economics: Positive or Normative science, The economy, its working & basic problems, Economic Systems & basic economic problems, Production Possibility Frontier and Opportunity Cost.

Unit II: Demand, Supply and Consumer Behaviour Demand: Demand and its determinants, Law of Demand, Demand Curve, Movement along and shifts in the demand curve. Elasticity of Demand: Types, Factors affecting the Elasticity of Demand, Methods of calculating Price Elasticity, Importance of elasticity of demand.Supply: Supply and its Determinants, Law of Supply, Supply Curve, Movements along and shifts in supply curve.Market equilibrium: Applications of Demand and Supply Analysis.Theory of Consumer Behaviour: Concept of Utility, Law of Diminishing Marginal Utility, Consumers Equilibrium: Cardinal and Ordinal utility approach, Consumer and Producer surplus.

Unit III: Theory of Production and Analysis of CostProduction function, Law of Returns and Returns to Scale, Economies of scale. Cost & Revenue concepts, Cost-output relationship in the short run and long run, ICT revolution & cost. Unit IV:Market Structure and Market FailurePerfect competition, Imperfect markets: Monopoly, Monopolistic competition and Oligopoly, Technological change and imperfect competition, Labour market, Market failures and Public goods.

Objectives and/or special features of the course:The course seeks to analyse the economic behaviour of individuals, firms and markets. It is mainly concerned with the objective of equipping the students with the analytical tools of micro economics with the various aspects of demand and supply analysis, theory of production and cost analysis, market structures and market failures. It is further aimed to develop the economic way of thinking in dealing with economic issues. Text book: 1. Dwivedi, D.N, Microeconomics: Theory and applications, Pearson Education, New Delhi, 2006

Reference books:1. Lipsey, R.G. and K.A. Chrystal, Principles of Economics, Oxford University Press, Oxford, 1999.2. Mankiw, N. Gregory, Economics: Principles and Applications, Cengage Learning India Private Limited, 4th edition, 2007.3. Samuelson, Paul A and Nordhaus, Anindya Sen, Sudip Chaudhuri,Economics, Tata McGraw Hill Publishing Company Limited, New Delhi, 19th Edition, 2010.

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