PROGRAM Bachelors Of Commerce

SEMESTER I
COURSE TITLE Microeconomics
COURSE CODE 04LS1103
COURSE CREDITS 04
COURSE DURATION 48 Hrs (48 sessions of 60 minutes each)

COURSE OUTCOMES:
 Apply economic reasoning to the analysis of selected contemporary economic problems.
 Understand how households (demand) and businesses (supply) interact in various market
structures to determine price and quantity of goods and services produced and consumed.
 Use economic problem solving skills to discuss the opportunities and challenges of the
increasing globalization of the world economy.

Course Contents:

Unit No Unit / Sub Unit Sessions

I INTRODUCTION TO MICROECONOMICS 10
Meaning and definition of Microeconomics, Nature and scope of
Microeconomics, Difference between microeconomics and
macroeconomics. Central economic problems of society.

II CONSUMER BEHAVIOUR 10
Utility analysis: Meaning of Cardinal and Ordinal utility. Cardinal Utility:
Law of diminishing Marginal utility, Law of Equi-marginal Utility, Ordinal
Utility: Indifference curve analysis, properties of indifference curve
analysis, Marginal rate of substitution, Budget line and consumer’s
Equilibrium.

III DEMAND AND SUPPLY ANALYSIS 10

Determinants of demand, law of demand, exceptions to law of demand.
Elasticity of demand and its applications: Price elasticity, Income elasticity
and cross elasticity. Concept and Law of Supply, Factors Affecting Supply

IV PRODUCTION AND COST ANALYSIS 10

Production Function: Short run and long run production functions, laws of
returns, and law of returns to scale. Cost Function: classification of costs,
short run and long run cost curves and their interrelationship, Planning
curve and envelope curve, internal and external economics of scale,

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 revenue curves, optimum size of the firm, factors affecting the optimum
size

V EQUILIBRIUM OF FIRM AND INDUSTRY 08

Perfect competition, monopoly, monopolistic competition, discriminating
monopoly, aspects of non-price competition; group equilibrium, excess
capacity, selling costs, oligopolistic behavior.

Evaluation:
The students will be evaluated on a continuous basis and broadly follow the scheme given below:

Component Weight age

A Continuous Evaluation Component (Assignments / 20% (C.S.E.)
Presentations/ Quizzes / Class Participation/ etc.)
B Internal Assessment 30% (I.A.)
C End-Semester Examination 50% (External Assessment)

SUGGESTED READINGS:

Text Books:

Sr. No Author/s Name of the Book Publisher Edition & Year of

Publication
T-01 H. L. Ahuja Principles of Economics S. Chand Publishing 11th ed. 2015
house

Reference Books:

Sr. No Author/s Name of the Book Publisher Edition and Year of

Publication
R-01 N.GregoryMankiw, Principles of Micro Cengage 6th ed.
Economics
R-02 Pindyck, R.S., D. L. Microeconomics Pearson 7th ed.
Rubinfeld and P. L. Mehta
R-03 D. Salvatore Microeconomic Theory Tata McGraw 5thed
Hill
R-04 D N Dwivedi Managerial Economics, Vikas 4th ed.
Publishing
House

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