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Microeconomics – BBS First Year
Before You Begin
How Many & What Type of Questions Are Asked in This Subject (BBS 1st Year Eco)
Chapterwise Notes with Possible Questions & Answers
Unit 1: Introduction Free स्याम्पल
1.1 Meaning, Scope, Uses and Limitations of Microeconomics
1.2 Business Economics: Nature and Scope
1.3 Basic Concepts: Production Possibility Curve, Marginal Analysis, Incremental Analysis, Static and Dynamic Equilibrium Analysis in Microeconomics
1.4 Ten Principles of Economics
Unit 2: Market Equilibrium and Efficiency Free स्याम्पल
2.1 Demand Function: Types, Determinants of Demand, and Movement & Shift in Demand Curve
2.2 Supply Function: Types, Determinants of Supply, and Movement & Shift in Supply Curve
2.3 Market Equilibrium || Effect of Changes in Demand & Supply and Effect of Govt Policy on Market Equilibrium
2.4 Market Efficiency || Measuring Market Efficiency by Consumer’s Surplus & Producer’s Surplus
Unit 3: The elasticity of demand and supply
3.1 Price Elasticity of Demand: Concept, Degree, Calculation, and Uses
3.2 Income Elasticity of Demand: Concept, Degree, Calculation, and Uses
3.3 Cross Elasticity of Demand: Concept, Degree, Calculation, and Uses
3.4 Advertisement Elasticity of Demand: Concept and Uses
3.5 Price Elasticity of Supply: Concept, Degree, and Calculation
Unit 4: Analysis of Consumer Behavior
Unit 5: Theory of production
5.1 Production Function and The Law of Variable Proportion
5.2 Isoquant, Isocost, Optimal Employment of Inputs, and the Law of Returns to Scale
Unit 6: Cost and Revenue Curves
6.1 Cost function || Concept of costs: Implicit cost and explicit cost, accounting cost and economic cost, historical cost and replacement cost, separable cost and common cost, opportunity cost
6.2 Short-run costs: Cost-Output Relationship ⇒ Derivation of STCs, short-run average & marginal cost curves, and their relationship; Reason for the U-shape of SAC curve; Relationship between AC & MC curves
6.3 Long-run Costs: Derivation of Long run Average and Marginal Cost Curves; Reason for the U- shaped, L- shaped and Continuously Falling Long Run Average Cost Curve
6.4 Economies of Scale and Concept of Economies of Scope
6.5 Revenue Function || Revenue Curves under Perfect and Imperfect Competition Market
6.6 Relation between Average and Marginal Revenue Curves
6.7 Relationship between Price Elasticity of Demand and Revenue
Unit 7: Theory of Product Pricing
7.1 Market structure: Concept and Characteristics; Profit maximization goal of firm
7.2 Price and Output Determination under Perfect Competition: Short-Run and Long-Run Equilibrium; Derivation of Short Run Supply Curve of a Firm and Industry
7.3 Price and Output Determination under Monopoly: Short-Run and Long-Run Equilibrium; Economic Effects of Monopoly
7.4 Price and Output Determination under Monopolistic Competition: Short-Run and Long-Run Equilibrium; Monopolistic Firm’s Equilibrium under Product Variation and Selling Expenses
7.5 Concept & Types of Cartel; Pricing under Joint Profit Maximization Cartel; and Pricing Practices: Price Discrimination, Cost Plus Pricing, Incremental Cost Pricing, Administered Pricing, Export Pricing, Predatory Pricing, Skimming Pricing & Penetration Pricing
Unit 8: Theory of Factor Pricing
8.1 RENT: Modern Theory of Rent
8.2 WAGES: Marginal Productivity Theory of Wages; Concept of Collective Bargaining; Minimum Wages Fixation; Wage Differentials
8.3 INTEREST: Nominal and Real Interest Rates; Interest Rate Differentials; Theories of Interest: Loanable Funds Theory of Interest and Liquidity Preference Theory of Interest
8.4 PROFIT: Economic Profit and Business Profit; and Theories of Profit: Dynamic Theory of Profit and Innovation Theory of Profit
After the Course Completion
Message from the Author (Microeconomics)
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Unit 2: Market Equilibrium and Efficiency

  1. Microeconomics – BBS First Year
  2. Unit 2: Market Equilibrium and Efficiency
Unit Content
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2.1 Demand Function: Types, Determinants of Demand, and Movement & Shift in Demand Curve
2.2 Supply Function: Types, Determinants of Supply, and Movement & Shift in Supply Curve
2.3 Market Equilibrium || Effect of Changes in Demand & Supply and Effect of Govt Policy on Market Equilibrium
2.4 Market Efficiency || Measuring Market Efficiency by Consumer’s Surplus & Producer’s Surplus
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