Course Started on 18th April, 2022
Completed on 26th July, 2022
Unit-1. Theory of Factor Pricing
Practice Question Set 1/2-Link
Practice Question set 2/2-Link
• Introduction and Foundation of Factor Pricing Theory - Personal and Functional distribution of Income
•Demand for factors of production is derived demand- Demand for factors of production by individual firm – Determinants of price elasticity of demand for a factor – marginal productivity theory and its limitations
Class task 1.4, Submit by 10 am, 1st June 2022
• Theory of wage - Choice between work and leisure – derivation of individual labour supply curve – total labour supply curve – demand for labour – determination of equilibrium in a competitive labour market- collective bargaining and wage rate.
Class task 1.5 Submit by 10 am 22nd June, 2022- Submission Link
Collective bargaining -Link
• Theory of rent - Transfer earning and economic rent – quasi rent – Rent and price
Lecture 1 - Ricardo Theory of Rent
Lecture 2 - Modern Theory of Rent
• Theory of profit - Gross and net profit- elements of profit- risk and uncertainty theory, Innovation theory of profit.
Lecture Notes Lecture Video , Class task 1.2
• Theory of Interest- Real and Money Interest- Loanable Fund Theory and Liquidity Preference Theory of Interest
Classical Theory of rate of Interest - Notes
Loanable fund theory of rate of interest - Notes , Video1, Video2
Liquidity Preference Theory of rate of Interest - Reading, Video
Class task 1.3 (submit before 10 am, 6th May,2022
Unit 1 Complete Notes Submission - Link, 3rd July,2022
Unit -2. Theories of Imperfect Competition
Monopolistic competition: Introduction and foundation, short run, adjustment from short run to long run equilibrium, and long run equilibrium, Chamberlin large group model. Excess capacity.
Practice Question set 1/3-Link
Lecture 1 - Market structure Foundation concept - Youtube Video link , PDF
Lecture 2 - Monopolistic Competition Introduction
Lecture 3 - Monopolistic Competition Part 2
Class task 2.1 Submit before 10 pm , 20th May,2022
Theory of monopoly: Theory of monopoly: Characteristics- AR and MR curves under monopoly – Relation among AR, MR and Elasticity of demand – Equilibrium under monopoly – major features of monopoly- index of monopoly power – price discrimination – when possible? – when desirable? – Degree of price discrimination- First, Second and Third – equilibrium under price discrimination – Intertemporal pricing, Peak Load pricing-Natural Monopoly- Efficiency and Monopoly- Problems of Monopoly – Equilibrium under Multiple Plant monopoly – Comparison between Monopoly and Perfect Competition.
Class task 2.2 Submit before 10 am, 26th June,2022
Theory of Oligopoly: Characteristics of oligopoly - non-collusive oligopoly models of Cournot and Stackelberg – collusive oligopoly – price leadership – market sharing model – price rigidity under oligopoly.
Youtube Video Link
Lecture 1 - Oligopoly Market Structure: Introduction -
Lecture 2 - Sources & form of Oligopoly, Cournot Model
Lecture 3- Cournot Model using Reaction curve
Lecture 5 - Stackelberg Model and Paul Sweezy Kinked Demand Model
Lecture 6 - Introduction to Collusive Oligopoly and Perfect Cartel Model
Lecture 7- Market Sharing Cartel Model; 1. Non-Price Competition
Lecture 8- Market Sharing Model; 2. Quota System
Lecture 9- Price Leadership Model
Collusive Oligopoly Notes - 1. Introduction and Low Cost PL Model , 2. Dominant and Barometric PL Model , 3. Cartels
Class task 2.3 - Link submit by 10 am, 26th July 2022
Unit -3. General Equilibrium and Economic Welfare
Partial and general equilibrium – a formal statement of general equilibrium approach - the concept of Pareto optimum – Pareto optimality in consumption – Pareto optimality in production – General Pareto optimality condition.
Youtube Video Link
Pareto Optimality Criteria in Consumption -Video
An example of Edgeworth box diagram
Pareto Optimality in production, consumption and simultaneous equilibrium
Class task 3.2 Submission link Submit by 10 am 19th July, 202
References/ Suggested Readings
1. A Koutsoyaniss: Modern Microeconomics, 2nd Edition, Macmillan Press Ltd. Hound mills/ Palgrave Macmillan (India).
2. R. S. Pindyck and D. N. Rubinfeld : Microeconomics, 8th Edition, Pearson India.
3. H.L Ahuja: Advance Economic Theory-Microeconomics Analysis, 21st Edition, S. Chand Publishing.
4. C. Snyder and W. Nicholson, Microeconomic Theory: Basic Principles and Extensions, 12th Edition, Cengage Learning (India).
5. D.N Dwivedi: Microeconomics II, 1st Edition, Pearson India.
14th June - Notes link 14th June- Short Notes wages
21st May Lecture notes 24th May Lecture notes 25th May Lecture notes 1 25th May Lecture Notes 2
Theory of factor pricing - Link