Microeconomic and Banking Foundation of Business
Year / Semester: 
2nd Semester

This course aims at providing the students the knowledge of microeconomic concepts and their applications in various decision making situations.


Nature and scope of economics; functional areas of microeconomics; demand, supply and competitive equilibrium; law of demand; elasticity of demand and supply; consumer’s equilibrium – utility and indifference curve approaches. Short and long run production function; laws of return; optimal input combination; cost classification; cost curves and their interrelationships; plant size and economics of scale; location of industries; growth of a business firm-motives and methods; optimum size of the firm. Basic characteristics of perfect competition; monopoly, monopolistic competition and oligopoly; measurement of market concentration and monopoly power; diversification; vertical integration and merger of firms; aspects of non-price competition. Characteristics of various factors of production; mobility and productivity of factors; determination of rent, interest and wages; alternative theories of profit; marginal productivity theory of distribution.

Suggested Readings: 
  1. P.A. Samuelson, Economics
  2. Dominic Salvatore, Theory and Problem of Mangerial Economics, McGraw Hill, NY.
  3. R.R. Barthwal, Industrial Economics-An Introductory Textbook, Wiley Eastern, N. Delhi
  4. P.L. Mehta, Managerial Economics, S. Chand, N. Delhi