Business Economics

Paper Code: 
CBBA 103
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
1.00
12.00
Unit I: 
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.

12.00
Unit II: 
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.

12.00
Unit III: 
Producer and optimal production choice, Costs and scale

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, isocost line, optimal combination of resources)
Costs and scale: Cost Concepts, Cost Curves: Short run & Long run; economies of scale, economies of scope.

12.00
Unit IV: 
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)

12.00
Unit V: 
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.

Essential Readings: 

1. Salvatore, Dominick, Micro Economics, Oxford University Press, New York
2. Seth, M. L., Principles of Economics, Laxmi Narain Agarwal, Agra
3. Mithani,D.M., Fundamentals of Economics, Himalya Publishing House,Mumbai
4. Ahuja, H.L. , Business Economics, S.Chand & Company,New Delhi
5. Mathur N.D. Managerial Economic. Shivam Book House, Jaipur

References: 

1. C. M. Choudhary : Business Economics
2. Jhingal, M.L., Principles of Economics, Vikas Publishing House, New Delhi
3. Mukherjee,Debes, Business Economics Micro and Macro, New Central Book Agency, Calcutta

Academic Year: