Microeconomics syllabus – MA 1st

MA in Economics

First Semester

Econ. 551 Microeconomics

Unit   1.  Methodological Concepts – 8 Hours – CBK

• Equilibrium: meaning and stability test
• Analysis of equilibrium: static, dynamic, and comparative statics
• Models in economics: definition, importance, types (economic and
  econometric), and choice between models
• Methods of analysis
  • Deductive, inductive
  • Hypothetico-deductive methods
• Importance of assumptions, hypothesis, and empiricism in economics
• The scientific paradigm of economics

Unit   2.  Consumer Behavior – 16 Hours – (Hemanta Sir) PDF

• Preference   ordering
• The   consumption   decision
• Consumer’s   equilibrium   (with indifference  curve  approach)
• Changes  in  prices  and  derivation  of  compensated  and uncompensated demand curves
• Comparative statics of consumer behavior
• Types of goods
• The concept of duality in consumer theory
• The expenditure function
• The indirect utility  function
• Estimating the cost  of  living
• Lancasterian  demand  theory  and  linear expenditure system
• Revealed preference theory

Unit   3.  Behavior under Uncertainty – 8 Hours ( JPA SIR ) 

• Consumption and uncertainty
• Expected utility
• Von Neumann-Morgenstern utility
• The Allais paradox and the Ellsberg paradox
• Gambling and insurance
• The Friedman–Savage hypothesis
• The insurance market
• Moral hazard and adverse selection
• Reducing risk and uncertainty

Unit   4.  Technology – 14 Hours  ( JPA SIR )

• Measurement of inputs and outputs
• The production function for a single product
• Decision period related to production analysis
• The elasticity of substitution
• Production with one and two variable inputs
• Producer’s equilibrium: optimal choice of inputs, constrained output
  maximization, constrained cost minimization, profit maximization, effects of changes in outlay on the equilibrium position
• Homogeneous and homothetic technologies
• Technical rate of substitution
• Returns to scale
• Calculation of these values in some standard production functions such as Cobb-Douglas, Leontief, and CES
• Derivation of cost function from the production function

Unit 5. Market – 18 Hours – JPA Sir

• The competitive firm
• The profit maximization problem
• The firm and the industry demand and supply functions
• Different types of cost and revenue functions
• Identical cost functions
• Market equilibrium
• Identical firms
• Short-run, and long-run equilibrium
• Taxes, and subsidies
• Monopoly, special cases of monopoly
• Comparative statics
• Welfare and output
• Quality choice
• Price discrimination
• First-degree price discrimination
• Second-degree price discrimination
• Third-degree price discrimination
• Welfare effects
• Tying and bundling
• Monopolistic competition and cartel

Reference Book

Cowell_Microeconomic_Principles

[Hal_R._Varian]_Microeconomic_Analysis

A. Koutsoyiannis (auth.) – Modern Microeconomics-Macmillan Education UK (1979)

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References:

Cowell, F. (2006): Microeconomics: Principles and analysis. New Delhi: Oxford University Press

Gravell, H. and R. Rees (2004): Microeconomics, third edition, Pearson

Koutsoyiannis, A. (1979): Modern microeconomics, second edition, Macmillan.

Mas-Colell,  A.,  Whinston,  M.D.  and  Green  J.  (1995):  Microeconomic  theory.  New  Delhi:

Oxford University Press Salvatore, D. (2009). Principle of microeconomics, 5th edition. New Delhi: Oxford University Press

Varian, H.R. (2009): Microeconomic Analysis, third edition, first Indian edition, Viva Books