ME (BBA 1st)

Microeconomics: meaning nature and scope. Basic concepts of economics: Static and

dynamic approaches, equilibrium, utility, opportunity cost, marginal and incremental

principles. Microeconomics and Business.

Theory of demand: Nature of demand for a product, individual demand, market demand,

determinants of demand. Elasticity of demand and its determinants. Demand as

multivariate function.

Theory of Consumer Behavior: Utility analysis, indifference curve analysis, applications

of indifference curves.

Theory of production and costs: The concept of production function, production with one

and two variable inputs, optimal input combination, theory of cost in short run and long

run, revenue function.

Theory of firm and market organization: Breakeven analysis, pricing under perfect

competition, pricing under monopoly, price discrimination, pricing under monopolistic

competition, selling cost, pricing under oligopoly: cournot model, kinked demand curve

and price leadership.