NPTEL Syllabus

Micro Economics - Video course

COURSE OUTLINE
Microeconomics is the study of the allocation of scarce resources among
individuals. Economic theories are based on the assumption that individuals
as well as firms have well defined objectives;
Utility maximization for individuals and profit maximization for firms and they
act systematically according to the incentives and constraints of their
economic environment.
It is this framework that allows the economist to gain a fundamental
understanding of the human puzzle in an economic setting.

NPTEL
http://nptel.iitm.ac.in

Humanities and Social

Sciences

This course in the fundamentals of economics covers consumer theory,

producer theory as well as the market structures through which individuals
and firms interact.
Hyperlinks:
COURSE DETAIL
Sl.No.

1.

http://www.mcafee.cc/introecon/IEA.pdf.
Topics and Contents

Introduction:

No. of
Lectures

1. Micro Economics: Definition, Scope and

Importance.
2. Basic Microeconomic Problems.
3. Tools of Economic Analysis.

2.

Demand and Supply:

1. Demand and Supply.

2. Consumer and Producer Surpluses.
3. Equilibrium.
4. Changes in Supply and Demand.
5. Elasticity.
6. Comparative Statics.
7. Production Possibility Frontier and
Trade.

3.

Consumer Theory:
1. Preference and Utility.
2. Utility Maximization.
3. Substitution and Income Effects.
4. Giffin Goods.

Coordinators:
Dr. Vimal Kumar
Department of Humanities and Social
SciencesIIT Kanpur

5. Compensated Demand.
6. Engel Curve.

4.

Producer Theory:

1. Types of Firms.
2. Production Functions and Isoquants.
3. Factor Substitution.
4. Law of Variable Proportions.
5. Return to scale and economies of scale.
6. Different concepts of costs and their
interrelation.
7. Equilibrium of the firm.
8. Expansion Path.
9. Empirical Evidence on Costs.

5.

Market Structure:

1. Perfect and Imperfect Markets.

2. Equilibrium of a firm Perfect competition,
monopoly and price discrimination.
3. Measure of Monopoly Power.
4. Monopolistic Competition.
5. Duopoly and Oligopoly.
6. Taxation and equilibrium of a firm.
7. Notion of controlled and administered
prices
8. Market Failures: Public Goods,
Externalities, Asymmetric Information.

6.

Factor Pricing:

1. Marginal productivity theory of

distribution
2. Theories of wage determination
3. Wages and collective bargaining
4. Wage differentials
5. Rent Scarcity rent, Differential rent, Quasi
rent
6. Interest Classical and Keynesian
theories
7. Profits Innovation, risk and uncertainty
theories.

7.

Investment Analysis:
1. Payback period, average annual rate of

return.
2. Net present value.
3. Internal rate of return criteria.
4. Price changes.
5. Risk and Uncertainty.
6. Elements of social cost-benefit analysis.

8.

Welfare Economics:

1. Problems in measuring welfare.

2. Classical welfare economics.
3. Paretos criteria.
4. Value judgment.
5. Concept of a social welfare function.
6. Compensation principle: Kaldor, Hicks.

Total

43

References:
1. Robert S. Pindyk and D.L. Rubinfeld, Microeconomics, Edition: 6,
Paperback (Special Indian Edition), Pearson Education India.
2. Hal R. Varian, Intermediate Microeconomics : A Modern Approach,
Edition 7, Paperback (Special Indian Edition), Affiliated East West.
3. R. Preston McAfee, Introduction to Economic Analysis, Freely available
on http://www.mcafee.cc/introecon/IEA.pdf licensed under the Creative
Commons.
A joint venture by IISc and IITs, funded by MHRD, Govt of India

http://nptel.iitm.ac.in