Supply Analysis: Concept; Types; Factors dictating supply; Supply curve & supply schedule; Law of supply; Expansion / contraction of supply vs.. Increase / decrease in supply Elasticity of Supply: Concept; Values; Measurement; Determinants; Implications for the suppliers Equilibrium and Price Making: Concept of equilibrium; Shifts in demand & supply & impact on price & quantity; Price as allocating device for sources through surplus & scarcities; Alternative nodes of price fixation.
Macro Economics By bookmarks Concept of production & production function; LEER & IVR; LAP; Relationship between TAP, PM, and AP, stages of production, concept of returns to scale & laws of returns, impact of technological change on return, concept of Squanto, costs lines & equilibrium; Equilibrium under cost constraint & for a given output; Economic region of production; Expansion path. Concept of cost; Linkage between production & cost; Cost classification. ETC, AC, & MAC and their relationship; Cost curve under SIR & LEER;
Economies of scale; Economies of scope; Implications for a firm Meaning and characteristics; SIR equilibrium, break – even analysis and shut down point, long run equilibrium; Supply curve for a competitive firm – LEER (horizontal, rising or falling) and short run; Efficiency of competitive markets; Advantages of perfect competition; Disadvantages of a competitive firm. 8. MONOPOLY
Concepts; Source of monopoly power; Measure of monopoly power; Cost, revenue and equilibrium under monopoly; Supply curve of a monopolist; Shifts in demand and impact on monopoly firm; Advantages and disadvantages of monopoly; Monopoly vs.. Perfect competition. Price discrimination: Meaning, conditions; Types; Equilibrium Monopoly: Meaning and Significance Bilateral monopoly: Meaning; Price determination (These topics are to be covered in detail, and NOT in outline form only) (Note: Imperfect forms of market – monopolistic competition and oligopoly – are being deferred to MODEM – II, Seem II )