Unit 1. Introduction
 Demand and Supply: Determinants of demand, movements vs. shift in demand
curve,Determinants of Supply, Movement along a supply curve vs. shift in supply curve; - Market equilibrium and price determination.  Elasticity of demand and supply.  Application of demand and supply.

Unit 2. Consumer Theory
Ordinal Utility theory: (Indifference curve approach): Consumer’s preferences;
Interferencecurves; Budget line; Consumer’s equilibrium; Income and substitution effect;
Priceconsumption curve and the derivation of demand curve for a commodity; Criticisms of the
lawof demand.

Unit 3. Production and Cost  Production: Firm as an agent of production. Concepts of Production function. Law of
variable proportions; Isoquants; Return to scale. Economics and Diseconomies of scale.  Costs: Costs in the short run. Costs in the long run, Profit maximization and cost
minimization.Equilibrium of the firm, Technological Change: the very long run.

Unit 4. Market Structure  Perfect Competition: Assumption; Theory of a firm under perfect competition; Demand and Revenue; Equilibrium of the firm in the short run and long run, the long
runindustry supply curve: increasing, decreasing and constant cost industry. Allocation
efficiencyunder perfect competition
 Monopoly: Short-run and long-run equilibrium of monopoly firm; Concept of supply
curveunder monopoly; Allocation inefficiency and dead-weight loss monopoly;
Pricediscrimination.  Imperfect Competition: Difference between perfect competitions, monopoly
andimperfect competition;
(i) Monopolistic Competition: Assumption; Short – run Equilibrium; Long run
Equilibrium;Concepts of excess capacity; Empirical relevance.
(ii) Oligopoly: Causes for the existence of oligopolistic firms in the market rather
thanperfect Competition; Cooperative vs. Non cooperative Behaviour and dilemma
of oligopolistic firms.