Course

Unit 1

Introduction to Economics

Definition, scope, and methodology -Basic problems of an economy -Micro vs. macroeconomics -Opportunity cost and production possibility frontier – Positive and normative economics

Unit 2

Theory of Consumer Behavior Analysis

Cardinal and ordinal utility -Law of Diminishing Marginal Utility- Law of Equi-Marginal Utility-Indifference curves and budget constraints -The Budget line, Expansion path Consumer’s Equilibrium- Breaking up of price effect into income effect & substitution effect.

Unit 3

Demand and Supply Analysis

Law of demand and supply – Elasticities: price, income, cross – Consumer equilibrium and utility analysis – Market equilibrium and effects of shifts.

Unit 4

Production Cost and Revenue Analysis

Factors of production, Production function- Production function with at least one fixed input (Law of variable proportion)- Production function with two variable inputs (Law of returns to scale)-Iso-quants, Iso-cost line & producer’s equilibrium- Optimum factor combination Concept of cost- Types of costs, the link between Production and Costs- The relationship between the average and marginal cost curves- Economies and Diseconomies of scale Revenue analysis- Types of revenue- The relationship between the average and marginal revenue curves in case of Perfect & imperfect competition- Profit maximization, Equilibrium of the firm and industry.

Unit 5

Market Structures

Perfect competition: price and output determination -Monopoly and price discrimination – Monopolistic competition and product differentiation – Oligopoly: kinked demand curve and cartel models – Regulation of monopolies and competition law -Theory of Wage- Theory of Rent- Theory of Profit- Welfare Economics and Theories- Government intervention: pros and cons -Externalities and public goods- Economic rationale for regulation and legal policy.

Course Objectives

1. To introduce the foundational principles of microeconomics with a focus on individual decision-making by consumers and firms, and the functioning of markets.
2. To enable students to understand demand, supply, price determination, and elasticity, and apply these concepts to real-world legal and regulatory contexts.
3. To examine production, cost structures, and market forms (perfect competition, monopoly, oligopoly, monopolistic competition) and their relevance to competition law and market regulation.
4. To analyse market failures such as externalities, public goods, and information asymmetry, and evaluate the role of law and government intervention in correcting these failures.
5. To develop the ability to apply economic reasoning to legal issues, particularly in areas such as antitrust law, consumer protection, pricing regulation, and public policy.

Course Outcome

1. Integrate theoretical and practical micro-economic knowledge to critically evaluate micro-economic policies and their implications.
2. Explain and apply core micro-economic concepts such as demand, supply, consumer behavior, production, cost, and market structures to real-world economic situations.
3. Analyze economic problems using verbal, graphical, mathematical, and basic econometric tools, and demonstrate the interrelationship among these approaches.
4. Interpret micro-economic data and models to assess economic behavior and market outcomes.

Teaching Methodology: Lecture, Discussion, Assignment, Seminar, class projects and discussion

Reference Books:

1. Koutsoyiannis, Modern Microeconomics, Macmillan.
2. Gravelle,H. and Rees,R (2012), Micro Economics, Dorling Kindersley, New Delhi.
3. John.B. Taylor and RittiaGughani (2008), Principles of Micro Economics, Biztantra, Publications, New Delhi.
4. Jhingan, M. L. (2003). Advanced economic theory: Micro and macro economics  (12th ed.). Vrinda Publications.

Text Books :

1. Principles of Microeconomics: H. L. Ahuja, S.Chand &Company;2012-19th Edition
2. Economics: P.A. Samuelson and W.D Nordhaus, Tata McGraw Hill;2007-9th Edition
3. Modern Microeconomics: A. Koutsoyiannis, Macmillan Press;2013-12th Edition
4. Principles of Microeconomics: N. G. Mankiew, Cengage Learning;2013-3rd Edition
5. Microeconomics: Theory and Applications: D. N. Dwivedi, Pearson; 2012-2nd Edition.