Item 66/26 - Annexure - 22
Course Code Course Title L T P C
BHUM103L Micro Economics 3 0 0 3
Pre-requisite Nil Syllabus version
1.0
Course Objectives
1. To enable students to understand economic concepts f r o m a managerial
perspective.
2. To integrate theoretical knowledge with quantitative and qualitative evidence for
effective decision making.
3. To evaluate the consequences of market structure, pricing and competition at the
domestic and global levels.
Course Outcome
On completion of this course the students will be able to:
1. Describe traditional and modern definitions of economics.
2. Analyse supply and demand forces that determine equilibrium in a market economy.
3. Evaluate the factors affecting firm behaviour, such as production and costs.
4. Develop the skills to apply theories, models, and graphs to analyze the national and
internationalcases.
5. Discuss the behaviour of market, industry and the performance of firms under
different market structures.
6. Examine the market failures and the role of government in dealing with those failures.
Module:1 Microeconomic Principles 5 hours
Introduction to Economics – Definition (Wealth, Welfare, Scarcity and Growth); Economics
as Arts versus Science; Positive versus Normative Approaches.
Module:2 Consumer Behavior Theories 8 hours
Ordinal versus Cardinal approach- Law of Diminishing Marginal Utility - Indifference
curveanalysis - Consumer equilibrium - Demand Analysis – movement and shift in
Demand; exception to law of demand; Demand forecasting; Law of supply – Market
equilibrium – Resource Allocation.
Module:3 Elasticity of Demand and Supply 5 hours
Elasticity of Demand: Price, Income and Cross – Price elasticity’s; measurement of elasticity
–Elasticity of supply.
Module:4 Production Function 5 hours
Production Function; Features of Production - The Production Function with One Variable
Input and The Production Function with Two Variable Inputs – Law of Returns to Scale – Iso
- quant and Iso - cost line - Producer Equilibrium.
Module:5 Cost and Revenue Functions 5 hours
Cost Functions – Nature of cost – Short Run cost function and Long Run cost curves -
Revenue Functions – Types. Break-even analysis.
Module:6 Market Structure – Partial Equilibrium 8 hours
Products Markets – Perfect and Imperfect Competition- Monopoly, Monopolistic competition,
Duopoly and Oligopoly, Efficiency and Regulation Factor market – Factor pricing.
Module:7 General Equilibrium and Economic Welfare 7 hours
General Equilibrium of Production and Exchange; Externalities - Asymmetric information,
Adverse selection - Moral hazard; Pareto Optimality; Social Welfare Function.
Module:8 Contemporary Issues 2 hours
Total Lecture Hours: 45 hours
Text Book(s)
Proceedings of the 66th Academic Council (16.06.2022) 565
Item 66/26 - Annexure - 22
1. N. Gregory Mankiw (2015), “Principles of Microeconomics”, South-western
Cengage Learning, USA, 7th Edition.
Reference Books
1. Jeffrey M Perloff (2019), “Microeconomics”, Pearson Education, 17th Edition.
Dominick Salvatore ((2020), “Managerial Economics Principles and
2. World Wide Applications”, Oxford University Press, 9th Edition.
Varian H.R. (2015), “Intermediate Microeconomics: A Modern Approach”, East
3.
West Press Pvt., Ltd, New Delhi, 9th Edition.
Mode of Evaluation: Continuous Assessment Tests, Quizzes, Assignment, Final
Assessment Test
Recommended by Board of Studies 23-05-2022
Approved by Academic Council No. 66 Date 16-06-2022
Proceedings of the 66th Academic Council (16.06.2022) 566
