Course start from 20th September 2024
Course Completed on 30th January,2025
Content/ Syllabus: Unit wise course content distribution
Class task-1 Submit by 10 pm, 20th October, 2024
Class Test -21st October, 2024
Unit -1. Theory of Perfect Competition
Perfect competition and pure competition—Short run and long run equilibrium of a competitive firm – Short run and long run supply curves—Long run equilibrium of the competitive industry – price determination in a competitive industry – existence, uniqueness and stability of equilibrium –long run supply curves of the industry- effects of external economies and diseconomies – effect of change in cost – effect of imposition of tax – effect of price control.
Lecture 1,2&3 - Market Structure, Profit Maximizing Condition, SNP,NP,Operating Profit, Loss, Shutdown Point
Lecture 4&5 - Features and its Implication
Lecture 6,7&8 - SR Equilibrium: TR-TC Approach
Lecture 9,10&11- SR Equilibrium: MR-MC Approach
Lecture 12&13- Derivation of SR Supply curve, Numericals
Lecture 14, 15,16, 17- LR equilibrium in Perfect Competition, Derivation of LRS Curve
Lecture 18,19,20- existence, uniqueness and stability of equilibrium – effect of imposition of tax – effect of price control
Class task 1.1 -Submit by 10 pm, 27th Oct, 2024
Unit -2. Theories of Imperfect Competition
• 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 – equilibrium under price discrimination – Is price discrimination desirable? – Equilibrium under Multiple Plant monopoly – Monopsony - Equilibrium under bilateral monopoly
Class task 2.1 Submission Link-Submit by 10 am, 20th December,2024
• Monopolistic competition: short run and long run equilibrium, Chamberlin large group model. Excess capacity and Selling Cost.
Notes 1 - P & Q determination in Monopolistic Competition in the Short run
• Theory of Oligopoly: Characteristics of oligopoly - non-collusive oligopoly models of Cournot, Bertrand and Stackelberg – collusive oligopoly – price leadership – market sharing model – price rigidity under oligopoly.
Youtube Video Link
Lecture 1 - Oligopoly Market Structure: Introduction , Lecture Notes
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 , 4. Market Sharing by Quota Agreement
Unit-3. Theories of Factor Pricing
• Demand for factors of production – Determinants of price elasticity of demand for a factor – marginal productivity theory and its limitations
• 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.
Total labor Supply and Demand -Notes
Individual Labour Supply - Notes
Collective bargaining -Notes
• Theory of rent – Concept of Rent- Ricardian Theory of Rent. Modern Theory of Rent. Concept of quasi rent – Rent and Price.
Ricardo Theory of Rent (RTR) - Notes
Modern Theory of Rent(MRT)-Notes
• Theory of Interest- Real and Money Interest- Loanable Fund Theory and Liquidity Preference Theory of Interest
Real interest refers to the the nominal interest rate adjusted for inflation, it takes into account the rate of inflation and its effect on the purchasing power of money. Formula for real interest rate: Real Interest Rate = Nominal Interest Rate - Inflation Rate
Money interest, on the other hand, refers to the nominal interest rate, It's the rate at which money is borrowed or lent without any adjustment for inflation. Formula for nominal interest rate: Nominal Interest Rate = Real Interest Rate + Inflation Rate
Loanable Fund Theoy-Notes, Video1, Video2
Liquidity Preference theory- Notes, Video
• Theory of profit - Gross and net profit- elements of profit- Risk bearing theory of Profit-Uncertainty Bearing Theory- theory, Innovation theory of profit- Dynamic Theory of Profit.
Unit -4. General Equilibrium
Interdependence in the Economic System- Partial and general equilibrium – The Walrasian System (2x2x2 Model)- Existence uniqueness and Stability of an Equilibrium. Static properties of a General Equilibrium State- Equilibrium of production, consumption and simultaneous equilibrium of Production and Consumption- General Equilibrium and Resource Allocation.
Submission link Class task Unit 4 & 5 -Submit by 10 am, 27th Nov,2024
Partial and General Equilibrium notes
Youtube Video Link
Pareto Optimality Criteria in Consumption -Video
An example of Edgeworth box diagram
Pareto Optimality in production, consumption and simultaneous equilibrium
Submission Link Class task Unit 4 10th November
Unit -5. Welfare Economics
Criteria of Social Welfare- The Pareto optimality Criterion- The Kaldor- Hicks Compensation Criterion. Maximization of Social Welfare-Derivation of the Grand Utility possibility Frontier- Determination of the Welfare Maximization State. Welfare Maximization and Perfect Competition.
References/ Suggested Readings
1. Ryan, William James Louden, and David William Pearce. "Price theory." (1977). Macmillan India Limited.
2. Richard G. Lipsey: An Introduction to Positive Economics (6th Edition). ELBS.
3. A Koutsoyiannis: Modern Microeconomics, 2nd Edition, Macmillan Press Ltd. Hound mills/ Palgrave Macmillan (India).
4. Gould and Lazear: Microeconomic Theory (6th Edition), AITBS, New Delhi.
5. H.L Ahuja: Advance Economic Theory-Microeconomics Analysis, 21st Edition, S Chand & Co Ltd.
6. R. S. Pin Dyck and D. N. Rubinfeld: Microeconomics, 8th Edition, Pearson India.
7. Henderson and Quandt: Microeconomic theory: A mathematical approach, Tata McGraw- Hill.
8. Anindya Sen: Microeconomics (Second Edition). Oxford University Press.
9. Satya R. Chakravarty: Microeconomics, 1ST Edition, Allied Publishers Ltd.
10. Hal R. Varian: Intermediate Microeconomics: A Modern Approach, 8th edition, W.W. Norton and Company/Affiliated East-West Press (India).
11. C. Snyder and W. Nicholson, Microeconomic Theory: Basic Principles and Extensions, 12th Edition, Cengage Learning (India).