BUSINESS ECONOMICS

Demand, Supply and Market equilibrium: individual demand, market demand, individual supply, market supply, market equilibrium; Determinants of Demand; Elasticity of demand and supply: Price elasticity of demand, income elasticity of demand, cross price elasticity of demand, elasticity of supply.

Theory of consumer behavior: cardinal utility theory, ordinal utility theory (indifference curves, budget line, price effect, substitution effect, income effect for normal, inferior and giffen goods), revealed preference theory.

Producer and optimal production choice: optimizing behavior in short run( geometry of product curves, law of diminishing margin productivity, three stages of production), optimizing behavior in long run (isoquants, iso cost line, optimal combination of resources)
Costs and scale: Cost Concepts, Cost Curves: Short run & Long run; economies of scale, economies of scope.

Theory of firm and market organization : perfect competition (basic features, short run equilibrium of firm/industry, long run equilibrium of firm/industry) ; monopoly (basic features, short run equilibrium, long run equilibrium, comparison with perfect competition, welfare cost of monopoly), price discrimination; monopolistic competition (basic features, demand and cost, short run equilibrium, long run equilibrium) ; oligopoly (Cournot’s model, kinked demand curve model, dominant price leadership model)

Factor market: demand for a factor by a firm under marginal productivity theory (perfect competition in the product market, monopoly in the product market), market demand for a factor, supply of labour, market supply of labour, factor market equilibrium