Course in Microeconomic Theory

Indian Institute of Management Calcutta
In Kolkata

Price on request
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Important information

  • Course
  • Kolkata

Important information

Where and when

Starts Location
On request
INDIAN INSTITUTE OF MANAGEMENT CALCUTTA Diamond Harbour Road Joka, 700104, West Bengal, India
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Course programme

Ever wondered why MBAs were paid so high or that how the $ commanded such a premium. It's time you were exposed to the dynamics of demand and supply. This is just the begining of a journey to understand the rational drivers of all economic activities. Accompanying you on this journey will be arguably the best faculty in the entire nation. Acquire the differentiator to pre-empt competition and demolish all existing monopolies.

Term I:

Course Content:
1. Basic problems of an economy.
2. Concepts like opportunity cost, production possibility frontier and consumption possibility frontier.
3. Determination of market price by demand and supply - price controls - taxes and subsidies - case of an open economy.
4. Concepts of elasticities of demand and supply and some applications.
5. Theory of consumer behaviour - concept of consumer surplus - some applications of the theory of consumer choice.
6. Theory of production and costs - short run versus long run - economic profits versus accounting profits - sunk costs - economies of scale and economies of scope.
7. Principle of comparative advantage and the case for and against free trade.
8. The profit-maximization hypothesis. Non-profit maximizing behavior and checks on such behavior.
9. Perfect competition. Derivation of short run and long run supply curves.
10. Monopoly. Pricing strategies under monopoly. Durable goods monopoly. Bundling. Auctions.
11. Theories of oligopoly - Kinked demand curve, Bertrand, Cournot and Stackelberg models. Nash equilibrium and subgame-perfect equilibrium.
12. Product differentiation. Duopoly model and Monopolistic Competition model.
13. Externalities. The problem and solutions. Common Property Resources.
14. Public goods.
15. Uncertainty - The Expected Utility Theory and Attitudes towards Risk. Asymmetric information - Adverse selection and moral hazard problems.

A. Sen - Microeconomics: Theory and Applications. Oxford University Press.
R.S. Pindyck and D.L. Rubinfeld - Microeconomics. Prentice-Hall.

Students will be graded on the basis of a mid-term examination (accounting for 50% of the total marks) and a final examination (accounting for 50% of the total marks). Exams will not, in general, be cumulative, but if sufficient material is not covered before an exam, some material from earlier part of the course might be included.

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