UNIT I Market Structures Theory of
a Monopoly Firm: Concept of imperfect competition; short run and long
run price and output decisions of a monopoly firm; concept of a
supply curve under monopoly; comparison of perfect competition and monopoly,
social cost of monopoly, price discrimination; remedies for monopoly: Antitrust
laws, natural monopoly Imperfect
Competition: Monopolistic competition: Assumptions, SR and LR
price and output determinations under monopolistic
competition, economic efficiency and resource allocation; oligopoly: assumptions,
oligopoly models, game theory, contestable markets, role of government |
UNIT II Consumer and Producer Theory Consumer and Producer Theory in Action: Externalities, marginal cost pricing, internalising
externalities, public goods; imperfect information: adverse selection, moral
hazard, social choice, government inefficiency. Markets and Market Failure: Market adjustment to changes in demand, efficiency of
perfect competition; sources of market failure: imperfect markets, public
goods, externalities, imperfect information; evaluating the market mechanism. |
UNIT III Income Distribution and Factor pricing Input markets:
demand for inputs; labour markets, land markets, profit maximisation
condition in input markets, input demand curves, distribution of Income. |
UNIT IV International Trade Absolute advantage, comparative
advantage, terms of trade, sources of comparative advantage, trade barriers,
free trade/ protectionism. |