Content/ Syllabus: Unit wise course content distribution
Course Start on 4th Aug, 2025
Question paper 2019, 2020, 2021 , 2022
Unit -1. Theory of Perfect Competition - 22 Lectures
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 Notes 1 - Perfect Competition
Class task 1 Submission Link- Submit by 24th August, 2025
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
• Monopolistic competition: short run and long run equilibrium, Chamberlin large group model. Excess capacity and Selling Cost.
Varian- Intermediate Microeconomics, Chapter 25, page 475 to 484 ,Pindyck & Rubenfeld- Microeconomics, Chapter 12, pages 451 to 455, Advance Economics Theory : Microeconomics Analysis by H.L Ahuja - 21st edition, chapter 36, pages 790-808
Notes 1 - P & Q determination in Monopolistic Competition in the Short run
Lecture 1 - Market structure Foundation concept - Youtube Video link
Lecture 2 - Monopolistic Competition Part 1 - Youtube link
Techniques to draw graph for SNP, NP and Loss in case of Monopolistic competition.Concept of AR & AC
Lecture 3 - Monopolistic Competition Part 2 - Youtube link
• 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.
Lecture 1 - Oligopoly Market Structure: Introduction , , Lecture Notes 1 and Part of 2
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
Class task 3.1 Submission Link- Submit by 17th August,2025
• 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.
• Theory of rent – Concept of Rent- Ricardian Theory of Rent. Modern Theory of Rent. Concept of quasi rent – Rent and Price.
• 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.
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
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).
Continuous Assessment (Internal Exam): 30 Marks
1. Attendance - 08 marks
attending less than 60 % - Not eligible
attending at least 60% but less than 75% - 0 marks
Students with over 75% but less than 90% attendance - 6 marks
With 90% attendance and more - 8 marks
2. Class Tasks/Homework - 12 marks
Unit 1= 2 marks, Unit 2 & 3 - 4 marks each = 8 marks, Unit 4&5 = 2 marks
3. Exam- Subjective/Objective type - 10 marks
Internal Exam carries 10 marks
4. Presentation marks- 5 marks (Incentive marks)
Class participation, active involment in department activities, presentation etc
End Semester Examination: 70 Marks
The end semester examination shall be conducted based on written test.
Question Pattern: Students have to answer 2 questions carrying 10 marks out of given 4 questions
; 4 questions carrying 5 marks each out of given 8 questions;.
10 questions carrying 2 marks each out of given 16 questions;
Ten questions carrying 1 mark each out of given 16 questions.