ANSAL INSTITUTE OF TECHNOLOGY; GURGAON

2012

Course Code: AECO 202Course Title: Principles of Micro EconomicsCredits: 3Facilitator/ Teacher: Dr. Meenal Sharma JagtapContact Details: D- 007, AIT, Ext No. 489Email: meenalmona@yahoo.co.in

Course Objectives: The course is designed to familiarize the students with the basic concepts of microeconomics and introductory concepts of international economics. This course will help students in developing an insight about utilizing basic economic concepts for managerial decision-making.

Course Description:In this course, we aim to study different main concepts and theories of microeconomics. The course will acquaint the students of major economic tools available for the managers to maximize profits and minimize costs of businesses. Also, implementation of these tools will be attempted. Teaching /Learning Strategies: Lectures, Assignments, Cases, Quizzes, Group Projects, Group Discussions, Viva Evaluation:Internal Evaluation will be based on scores obtained by students in different modes of assessment conducted throughout the term.

Assignments - 10%Presentations/Attendance – 10%

Quizzes –20% Mid term Test I & II – 30%Major Test/Exam carries 30% weightage.

Attendance Policy:The attendance in all classes/sessions is compulsory. Continuous class assessments will be done all through the semester. Any assignments/ presentations/ Quizzes can be conducted without any prior notice to students. No makeup tests/quizzes shall be conducted for missed tests/ quizzes.

Course Structure:

Topics Covered Learning Outcomes No. of Lectures

Unit I: Microeconomic AnalysisIntroduction, Demand & Supply functions, Law of Demand, types of demand, Law of Supply, Normal, Inferior & Giffen goods, Elasticity of Demand, Types of elasticity & their determinants, Measurement of Elasticity

Explain the concept of demand & supply, Differentiate between demand & supply, Identify Elasticity types, Calculate elasticity

9

Quiz 1 Unit II: Cost & Revenue curves

Cost Function, Revenue functions, Cost curves – short term & long term, Relation between Cost & Revenue. AR , MR AC & MC

Explain Cost & Revenue functions, Derive and Draw Cost & Revenue curves. Identify the relationship between Cost & Revenue curves.

9

Presentation I/ Oral Q&A sessionUnit III: Theory of firm & Types of Market

Price determination under perfect competition & imperfect competition.Monopoly, Oligopoly & Monopolistic competition.

Describe price determination under different market forms. Evaluate various types of market forms. Differentiate between methods of price determination under different market forms.

8

Quiz 2Unit IV: Income Distribution

Theory of Production & Marginal Product, Pricing of factor inputs as rent, wages, interest & profits.

Explain the concepts of production function; Discuss the pricing of factors of production, Calculate Total, Marginal & Average Product.

9

Quiz 3Unit V: International Economics

Theory of Comparative Advantage & its role in international trade, determination of foreign exchange rate, balance of payments, Protective tariffs, Quotas & free trade.

Explain the theory of Comparative Advantage,List its applications & uses, Determine foreign exchange rate, Differentiate between tariffs & Quotas.

10

Revision & Problem Solving ClassFinal Quiz

Total No. of Lectures + Assessments 45

Recommended Books: Text Books

1. Koutsianis – Modern Microeconomics2. DN Dwivedi- Managerial Economics

2. HD Ahuja – Modern Economics – Theory & Applications