Sathyabama Institute of Science and Technology B.A.LL.B - B.A.LL.B. (Honours) SBA1103 Micro Economics Syllabus
 

Sathyabama Institute of Science and Technology B.A.LL.B - B.A.LL.B. (Honours) SBA1103 Micro Economics Syllabus

Sathyabama Institute of Science and Technology School of Law

SBA1103 MICRO ECONOMICS
L T P Credit Total Mark
4 1 0 4 100

UNIT 1 – INTRODUCTION 12 Hrs.
Meaning- Definitions of Economics- Nature & Scope of Economics- Subject Matter of Economics- Branches of
Economics- Importance and Uses and Relevance of Economics in Law.

UNIT 2 – CONSUMER BEHAVIOUR 17 Hrs.
Theory of Demand and Supply- Law of Demand & Supply- Determinants of Demand & Supply- Concept of Utility:
Cardinal Utility Theory- Marginal Utility and Total Utility- Consumer’s Equilibrium- Marginal Valuation- Equi-marginal utility,
Consumer’s Demand Curve- Consumer’s Surplus- Paradox of Value- Ordinal Utility Theory- Indifference Curve Approach-
Consumer’s Preferences- Indifference Curves- Budget Line- Consumer’s Equilibrium- Income and Substitution Effects- Price
Consumption Curve and the Derivation of Demand Curve for a Commodity- Income Consumption Path- Engel’s Law.

UNIT 3 – THEORY OF PRODUCTION, COST AND REVENUE 17 Hrs.
Production: Firm as an Agent of Production- Concept of Production Function- Law of Variable Proportions-
Isoquants- Returns to Scale- Economies & Diseconomies of Scale.
Costs& Revenue: Costs in the Short Run- Costs in the Long Run- Profit Maximization and Cost Minimization- Equilibrium of
the Firm- Technical/Technological Change- Concept of Revenue: Total, Average and Marginal Revenue.

UNIT 4 – PRICE AND OUTPUT DETERMINATION IN DIFFERENT MARKETS 17 Hrs.
Perfect competition – Short Run and Long Run- Equilibrium of the Firm and Industry - Price and Output
Determination – Supply Curve- Monopoly – Short run and Long run Equilibrium- Price Discrimination - Monopolistic
Competition – General and Chamberlin Approaches to Equilibrium- Equilibrium of the Firm and Group with Product
Differentiation and Selling Costs- Excess Capacity under Monopolistic and Imperfect Competition- Criticism of Monopolistic
Competition- Oligopoly – Non-Collusive (Cournot, Bertrand, Edgeworth, Chamberlin, Kinked Demand Curve and Stackelberg’s
Solution) and Collusive (Cartels and Mergers- Price Leadership and Basic Point Price System).

UNIT 5 – THEORY OF DISTRIBUTION 17 Hrs.
The Theory of Rent, Interest and Profits- Labour Supply and Wage Determination- Exploitation of Labour- Role of
Trade Unions and Collective Bargaining in Wage Determination- Minimum Wage Legislation.
Max. 80 Hours

COURSE OUTCOME
On completion of the course the student will be able to
CO1: Students understood the definition and basic concepts in micro economics.
CO2: Created awareness on cardinal and ordinal utility approaches.
CO3: Made to understand the concept of production function and different types of cost and revenues.
CO4: Enabled the students to understand the price and output determination under perfect and imperfect competitions.
CO5: Created awareness on the distribution of revenue among the four factors of production.
CO6: This Course will equip the students with the required Professional Skills

TEXT / REFERENCE BOOKS
1. Koutsoyiannis, A.(2000), Modern Microeconomics, (2nd Edition), Macmillan Press, London.
2. Layard, P.R.G. and Walters, A.W.(1978), Microeconomic Theory, McGrawHill, London.
3. Stigler, G.(1996), Theory of Price, PHI, New Delhi.
4. Sen, A.(1999), Microeconomics: Theory and Application, Oxford University Press, New Delhi.
5. Varian, H.R. (2000), Microeconomic Analysis, W.W. Norton, New York.

END SEMESTER EXAMINATION QUESTION PAPER PATTERN
Max. Marks:100 Exam Duration: 3 Hrs.
PART A: 6 Questions to be answered out of 8 questions and each question carries 5 Marks 30 Marks
PART B: 4 questions to be answered out of 8 questions (Internal Choice) and each question carries 10 Marks 40 Marks
PART C: 2 Questions to be answered out of 4 questions and each carries 15 marks 30 Marks