Annexure ‘CD – 01’

PSDA
Course Title: MICROECONOMIC THEORY & MANAGEMENT L T P/S SW/F TOTAL
W CREDIT
UNITS
Credit Units: 4 3 0 0 2 4

Course Level: UG

Course Code: ECON142

Course Objectives

The objective of this course is to make the student to understand how the business organizations work by applying economic principles in their business
management. The course will attempt to relate theory to practice and try to instill in students the ability to apply basic microeconomic concepts to the
understanding of everyday phenomena.

Pre-requisites: NIL

Course Contents/Syllabus:
Weightage (%)
Module I : Nature and Scope of Economics 20

Introduction of Economics. Definition: Basic concepts of economics. Scope and Limitations. Micro and
Macro Economics , Approaches to Economic Analysis, Production Possibility Curve.

Module II : Supply and Demand Analysis

 Law of Demand, Movements and Shifts in Demand Curve. Elasticity of Demand, Price, Income and Cross 20
Elasticity. Degree of Elasticity. . Determinants of Supply, Law of Supply, Movement and Shifts in Supply
Curves. Elasticity of Supply. Derivation of Supply curve.

Module III : Theory of Consumer Behaviour 20

Utility Analysis: Consumer equilibrium using cardinal and ordinal utility approaches, Law of
Diminishing Marginal Utility, Law of Equi Marginal Utility, Consumer Equilibrium, Indifference Curve
Analysis, Consumer’s Equilibrium. Price, Income and Substitution Effects. Derivation of Individual
Demand Curve and Market Demand Curve with the help of Indifference Curve. Consumer Surplus

Module IV : Theory of Production 20

Concept of Production. Production Functions, Isoquants, Scale of Production, Law of Return to Scale, Law of
Variable Proportion , Economies of Scale and Scope, Types of Costs, Types of Inputs, Limitations of Production
Function Analysis..

Module V : Market Structure 20

. Classification of Market. Perfect Competition, Short Run and Long Run Analysis. Equilibrium of the Firm and
Industry. Monopoly Features, Equilibrium. Discriminatory Pricing. Differences between Perfect Competition and
Monopoly. Monopolistic Competition. Oligopoly: Types of Oligopoly, Kinked Demand Curve

Course Learning Outcomes:

 Understand how households (demand) and businesses (supply) interact in various market structures to determine price and quantity of a
good produced.

 Identify the major characteristics of different market structures and the implications for the behavior of the firm.

 Analyze relationship between wages and productivity and apply the model to real-world businesses.
 Pedagogy for Course Delivery:
Remote classroom teaching shall be used for developing the concepts. Extensive use of case studies shall be made to
develop practical approach and inclination. Innovative discussions shall be carried out in class so that students learn to think
liberally using current knowledge base. The course will be taught through classroom teaching, PowerPoint Presentations,
Video and audio tapes, assignments, case studies and quizzes.

.
List of Professional Skill Development Activity:

 Group discussion on Recent Market structures.

 Presentation on current changes in Monetary Policy

Lab/ Practicals details, if applicable: NA

Assessment/ Examination Scheme:

Theory L/T (%) Lab/Practical/Studio (%) End Term Examination

40 N.A 60

Theory Assessment (L&T):

Continuous Assessment/Internal Assessment End Term
Examination
Components (Drop down) Project Class Test Viva Attendance

Weightage (%) 10% 10% 15% 5% 60%

Linkage of PSDA with Linked NA Linked NA NA

Internal Assessment to PSDA to PSDA
Component, if any 1 2&3
Mapping Continuous Evaluationcomponents/PSDA with CLOs

Bloom’s Level > Remembering Understandi Applying Analysin Evaluati Creating

ng g ng
Course Learning CLO2 CLO1 CLO3
Outcomes

Assessment
type/PSDA
Mid Term  
PSDA 1 (Group  
Discussion)
PSDA 2 (Project)  

Text & References:

 I.C.Dhingra, Principles of Microeconomics- Sultan Chand & Sons
 H.L.Ahuja- Microeconomics
 Baumol, W.J. Economic Theory and Operations Analysis, Prentice Hall of India, New Delhi.

References:
o Koutsoyiannis, A, Modern Microeconomics, Macmillan.
 Lipsey, R.G. and K.A. Chrystal, Principles of Economics, Oxford University Press, Oxford
o Principles of Microeconomics, N.Gregory Mankiw,
o -Managerial Economics : Analysis, problems, cases by Truett and Truett, Wiley .
 Economics,  John Sloman.

Additional Reading:
Bach, G., Economics, Prentice Hall of India, New Delhi.
 Gould, J.P. and Edward P.L, Microeconomic Theory, Richard, Irwin. Homewood.
Any other Study Material:
 Reserve Bank of India, Functions and working of R.B.I.