ব্যষ্টিক

Paper Objectives and Outcomes:

The objective of this Paper is to provide an understanding of the basic concepts of microeconomics. The main focus of the Paper is to provide an introduction to the economic principles behind the determination of demand, supply and production functions and on how equilibrium price and quantity are reached in selected markets.

Paper Contents:

1.  Introduction: Definition, Nature and Scope of Economics; The Economic Problem: Scarcity and Choice of Economics- Scarcity, Choice, Opportunity Cost, Comparative Advantage and Gains from Trade, Economic Systems; Microeconomics vs. Macroeconomics; Positive and Normative Economics.

2. Demand and Supply: The Circular Flow of the Market; Demand & Supply and their

Determinants; the Law of Demand and the Law of Supply; Movement and Shifts of Demand  and Supply Functions; Market Equilibrium and Changes in Market Equilibrium- Excess Demand and Excess Supply; Consumer’s and Producer’s Surplus; Government Intervention in the Market.

3. Elasticity of Supply and Demand: Concepts and Measurements of Various Elasticities of Demand and Supply.

4. Utility Analysis: Total and Marginal Utility; Law of Diminishing Marginal Utility; Equi-Marginal Principle; Derivation of Demand Curves; Indifference curve, budget constraint, Optimizing behavior- consumer’s equilibrium.

5. Theory of Production: Production Function and the Technology of Production; Production with One Variable Input- Average and Marginal Products, Average and Marginal Product of Labor, The Law of Diminishing Marginal Returns; Production with Two Variable

Inputs- Isoquants; Returns to Scale.

6. Theory of Cost: Accounting, Economic, Opportunity and Sunk Costs; Short-Run Total and

Per-Unit Costs Curves; Costs in the Long-Run; Long-Run vs Short-Run Costs.

7.  Perfect Competition: Assumptions and Implications of Perfect Competition; Profit

Maximization- Demand, Average and Marginal Revenue; Profit Maximization in the Short Run-

Accounting and Operating Profits and Losses, Shut Down Point; Short-Run Supply

Curve of the Firm and the Industry; Long-Run Competitive Equilibrium

8.  Monopoly: Demand, Average and Marginal Revenue; Monopolist’s Output Decision and

Supply Curve; Monopoly Power; Perfect Competition and Monopoly Compared.

Books Recomended

1. Mankiw, N. Gregory. Principles of Microeconomics. Any Late Edition. South Western College.

2.  Michael Parkin. Microeconomics. Any Late Edition. Prentice and Hall.

3.  Karl Case and Ray Fair. Principles of Microeconomics. Any Late Edition. Prentice and Hall.

4.  Paul Samuelson and William Nordhaus. Economics. Any Late Edition. McGraw Hill.