Dibrugarh University Syllabus B.Com 1st Semester MICRO ECONOMICS (CBCS)


B.Com. (Hons.) (CBCS)

Semester – I
G 101
(6 Credit)
Lectures: 60 Tutorial 5
Full Marks: 100
(Internal Assessment 20 + 80 End-Term)

Objective: The objective of the course is to acquaint the students with the concepts of microeconomics dealing with consumer behavior. The course also makes the student understand the supply side of the market through the production and cost behavior of firms.


Unit I
Demand and Consumer Behavior --- 12 L+ 1 T

Concepts of revenue: marginal and Average: Revenue under conditions of Perfect and imperfect competition Elasticity of demand: price, income and cross.
Consumer Behavior: Indifference curve analysis of consumer behavior; Consumer’s equilibrium (necessary and sufficient conditions). Price elasticity and price consumption curve, income consumption curve and Engel curve, price change and income and substitution effects. Indifference curves as an analytical tool (cash subsidy v/s. kind subsidy). Revealed Preference Theory. Marks: 16

Unit II
Production and Cost  -- 12 L+ 1 T
Production isoquants, marginal rate of technical substitution, economic region of production, optimal combination of resources, the expansion path, isoclines, returns to scale using isoquants. Cost of Production: Social and private costs of production, long run and short run costs of production. Economies and diseconomies of scale and the shape to the long run average cost.
Learning curve and economies of scope.  Marks: 16

Unit III
Perfect Competition --- 12 L+ 1 T
Perfect competition: Assumptions. Equilibrium of the firm and the industry in the short and the long runs, including industry’s long run supply curve. Measuring producer surplus under perfect competition. Stability Analysis – Walrasian and Marshallian. Demand - supply analysis including impact of taxes and subsidy.-- Marks: 16

Unit IV
Monopoly --- 10 L+ 1 T
Monopoly: Monopoly short run and long run equilibrium. Shifts is demand curve and the absence of the supply curve. Measurement of monopoly power and the rule of thumb for pricing. Horizontal and vertical integration of firms. The social costs of monopoly power including deadweight loss. Degrees of price discrimination.  Marks: 12

Unit V

ImperfectCompetition  ---14 L + 1 T
Monopolistic Competition and Oligopoly: Monopolistic competition price and output decision- equilibrium. Monopolistic Competition and economic efficiency Oligopoly and Interdependence
– Cournot’s duopoly model, Stackelberg model, Kinked demand model. Prisoner’s dilemma, collusive oligopoly – price-leadership model – dominant firm, cartels, sales maximization, Contestable markets theory. Pricing Public Utilities. Marks: 20