Business Economics - I

Unit - 1 Utility Approach

Meaning, Types, Relationship between Marginal Utility and Total Utility,
Law of Diminishing Marginal Utility, Law of Equi-Marginal Utility, Consumer Equilibrium,
Derivation of Demand Curve.
Indifference Curve Approach: Properties, Consumer Equilibrium, Price Effect, Income Effect,
Substitution Effect, Price Effect a combination of Income Effect and Substitution Effect.
Law of Demand
Elasticity of Demand: Definitions, Types, Measurement, Factors and Importance.

Unit - 2 Production and Revenue

Laws of Returns, Law of Variable Proportion and Returns to Scale.
Cost and Cost Curves : Concept of Nominal Real Economic Implicit, Explicit and Opportunity
Cost, Cost Curve under Short-run and Long-run, Relationship between Average Cost and
Marginal Cost.
Revenue Curves : Concept of Total Average and Marginal Revenue under different Market
Conditions, Relationship between Average Revenue, Marginal Revenue and Elasticity of
Demand.
Perfect Competition: Features, Equilibrium of Firm, Equilibrium of Industry, Role of Time
element in Price Determination.
Monopoly: Feature, Equilibrium of Firm/Industry, Price Discrimination and Its Types.
Monopolistic Combination: Features, Price-Output Policy of the Firm. Selling Cost, Meaning,
Effects, Equilibrium of Firm with respect to Selling Cost.