Micro Economics Theory – I

Paper Code: 
HRG 114
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

The objective of this course is to acquaint the students with concepts and techniques used in Micro-economic theory and to enable them to apply this knowledge in business decision-making.

7.00
Unit I: 
Unit 1

Introduction to economics: Central problems of economy, Concept & definition of micro economics & macro economics, scope of microeconomics, Types of Micro Economic Analysis. Role of Micro and Macro Economic Analysis in Formulation of Business Policy. Difference and Inter Dependence of Micro and Macro Economics.

9.00
Unit II: 
Unit 2

Utility Approach: Meaning and Definition of Utility,Characteristics of Utility, Measurement of Utility, Total Utility and Marginal Utility. Law of Diminishing Marginal Utility, Law of Equi-Marginal utility, Limitations of Utility approach

Law of Consumer surplus (Marshall’s version)

9.00
Unit III: 
Unit 3

Indifference curve Approach: Meaning, Assumptions, Properties of Indifference curves, Budget Line, Consumer Equilibrium, Price, income and substitution effect.

11.00
Unit IV: 
Unit 4

Law of Demand: Meaning, Determinants, Assumptions of the Law of demand,  Exceptions of  Law.

Elasticity of demand-Meaning, Degree of Price Elasticity. Income and Cross Elasticity,Methods of Measurement of Price Elasticity of Demand.-Percentage, Total outlay, Point, Arc method.

Demand forecasting- concept, methods

9.00
Unit V: 
Unit 5

Law of Supply: Meaning and Determinants

Law of Production- Meaning of Production, Law of Variable Proportions, Returns to scale, Production and Equal product curves (Isoquants), Least cost combination.

Academic Year: 
2019-2020
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