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The paper on `Principles of Microeconomics - I` has to be taken up for study in the first semester of BA (Programme). The present book has been written according to the new syllabus. As required in the syllabus, we have followed the framework of discussion adopted by Richard G. Lipsey and Alec K. Chrystal, in their book Principles of Economics (New York : Oxford University Press). We have covered the entire syllabus in a comprehensive and exhaustive way. The discussion in our book is divided into four units. The organisation, structure and contents of these units is as follows :
Unit I on `Introduction` is divided into five chapters devoted to a discussion on the definition of Economics, the concept of market economy, production possibility curve, methods of studying Economics, the concepts of demand and supply, elasticity of demand and supply, and applications of demand and supply (like price ceiling, price floor, and fixation of agricultural prices).
Unit II on `Production and Costs` starts by defining a firm and then proceeds to a discussion on a variety of concepts and issues related to the production theory like the law of variable proportions, isoquants and their characteristics, returns to scale, economies and diseconomies of scale etc. This is followed by the discussion on the various concepts of cost and cost functions both in the short-run and the long-run, the equilibrium of the firm, and the effect of technological changes in the very long run. The unit concludes by analysing the various revenue concepts and their interrelationship.
Unit III on `Consumer Behaviour` has three chapters. It focuses on the meaning and characteristics of indifference curves, consumer`s equilibrium, price, income and substitution effects, Engel curve and consumer surplus. A brief discussion of revealed preference theory is also carried out.
Unit IV on `Theory of Perfect Competition` undertakes a detailed discussion of perfect competition. After discussing the characteristics of perfect competition, we discuss how equilibrium of the firm and price are determined in this market structure. We also discuss the allocative efficiency under perfect competition and the shape of the long-run industry supply curve under conditions of increasing cost, constant cost and decreasing cost.
Keeping in view the fact that the book is meant for first year students, the language of the book has been kept simple and treatment of the subject is lucid. All difficult concepts have been explained thoroughly in an easy manner and, for this purpose, liberal use of diagrams has been made. For the benefit of students, important definitions and concepts have been highlighted in bold letters and main points have been summed up under the caption `Key Points` at the end of each chapter. For the practice of students, a set of questions has been added at the end of each chapter.ISBN - 9789350511251
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Pages : 242
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