LNMIIT Course Information Form

Title of the course: Micro Economics

Category: HSS Elective
If Program Elective, which stream(s): Open to all streams
Target Audience: IIIrd year
Pre-requisites: None
Total contact hours: Lectures / Tutorials: 40
Total number of credits: 03
Proposed Curriculum:
Unit I: Introduction to Micro Economics
Overview of Economics, Micro Economics: Positive or Normative science, The economy, its
working & basic problems, Economic Systems & basic economic problems, Production
Possibility Frontier and Opportunity Cost.
Unit II: Demand, Supply and Consumer Behaviour
Demand: Demand and its determinants, Law of Demand, Demand Curve, Movement along and
shifts in the demand curve.
Elasticity of Demand: Types, Factors affecting the Elasticity of Demand, Methods of calculating
Price Elasticity, Importance of elasticity of demand.
Supply: Supply and its Determinants, Law of Supply, Supply Curve, Movements along and shifts
in supply curve.
Market equilibrium: Applications of Demand and Supply Analysis.
Theory of Consumer Behaviour: Concept of Utility, Law of Diminishing Marginal Utility,
Consumers Equilibrium: Cardinal and Ordinal utility approach, Consumer and Producer surplus.
Unit III: Theory of Production and Analysis of Cost
Production function, Law of Returns and Returns to Scale, Economies of scale.
Cost & Revenue concepts, Cost-output relationship in the short run and long run, ICT revolution
& cost.
Unit IV: Market Structure and Market Failure
Perfect competition, Imperfect markets: Monopoly, Monopolistic competition and Oligopoly,
Technological change and imperfect competition, Labour market, Market failures and Public
goods.

Objectives and/or special features of the course:

The course seeks to analyse the economic behaviour of individuals, firms and markets. It is
mainly concerned with the objective of equipping the students with the analytical tools of micro
economics with the various aspects of demand and supply analysis, theory of production and cost
analysis, market structures and market failures. It is further aimed to develop the economic way
of thinking in dealing with economic issues.
Text book:
1. Dwivedi, D.N, Microeconomics: Theory and applications, Pearson Education, New Delhi,
2006

Reference books:
1. Lipsey, R.G. and K.A. Chrystal, Principles of Economics, Oxford University Press, Oxford,
1999.
2. Mankiw, N. Gregory, Economics: Principles and Applications, Cengage Learning India
Private Limited, 4th edition, 2007.
3. Samuelson, Paul A and Nordhaus, Anindya Sen, Sudip Chaudhuri, Economics, Tata McGraw
Hill Publishing Company Limited, New Delhi, 19th Edition, 2010.
Instructor(s) name:
URL for the course (optional):