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.