Microeconomics I (Sem 1, BCom Mumbai Univ)

We have great pleasure in presenting First edition “Microeconomics – I” written for students of UG courses. The related matters are written in a simple and easily understandable.

This volume is an attempt to provide the students with thorough understanding of Microeconomics – I. We have presented the subject matter in a systematic manner with liberal use of charts and diagrams where ever necessary so as to make it interesting and sustain students’ interest.

Contents –

Unit – 1 Introduction
Introduction
Meaning of Microeconomics
Features of Microeconomics
Mankiw’s Ten Principles of Economics
Process of Decision Making
Homo Economicus
Bounded Rationality
Decision Making with Respect to Investment
Growth and Expansion
Acquiring and Keeping Customers
Case Studies
Points to Remember
Match the Following
True and False
Fill in the blanks
Multiple Choice Questions (MCQ)
Review Questions

Unit – 2 Demand and Supply Analysis
Introduction
The Market Demand Curve
The Determinants of Market Demand.
The Market Supply Curve, Determinants of Market Supply.
Elasticity of Demand
Elasticity of Supply
Using Elasticities in Business Decisions
Case Studies
Points to Remember
Match the Following
True and False
Fill in the blanks
Multiple Choice Questions (MCQ)
Review Questions

Unit – 3 Production and Cost Analysis
Introduction
Production Function
Production Isoquants and their Properties
Isocost Lines-Least Cost Combination of Factors
Returns to Scale
Meaning of Cost
Types of Cost
Accounting Cost
Sunk Cost
Private Cost
Social Cost
Recurring Cost
Non-recurring Cost
Incremental Cost
Real Cost
Book Costs
Life Cycle Costs)
Short-run
Long-run Cost Curves
Economies of Scale
Diseconomies of Scale
Economies of Scope
Learning or Experience Curves
Case Studies
Points to Remember
Match the Following
True and False
Fill in the blanks
Multiple Choice Questions (MCQ)
Review Questions

Unit – 4 An Introduction to Economics of Information
Introduction
Information Economics
Meaning of Information Economics
Role in Decision Making
Challenge of Asymmetric Information in
Business Decision Making
Adverse Selection
Meaning of Adverse Selection
Using George Akerlof’s “Market for Lemons”
Problem for Highlighting the Consequences of
Information Asymmetry
Moral Hazard
Meaning of Moral Hazard
Examples from the Business World and
Ways of Overcoming it
Case Studies
Points to Remember
Match the Following
True and False
Fill in the blanks
Multiple Choice Questions (MCQ)
Review Questions