Revised Syllabus for the F.Y.B.A. (Sem II) Microeconomics – II Course: Economics UNIVERSITY OF MUMBAI

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UNIVERSITY OF MUMBAI

(As Per Choice Based Credit System with effect from the academic
year 2019-20)

Revised Syllabus for the F.Y.B.A. (Sem II)
Microeconomics – II
Course: Economics

Preamble:
As a logical sequence to Microeconomics Paper I, this paper is aimed at giving supply side
knowledge of Economics to the learner which will enhance their knowledge about aspects of
production, cost and revenue analysis, theories of distribution and understanding about the
market structure.

Module I: Production Analysis (12 Lectures)
Production Function: Concept And Types; Concepts of Total, Average and Marginal Product;
Law of Variable Proportion and Returns to Scale, Isoquant and Producer’s Equilibrium

Module II: Cost & Revenue Analysis (12 lectures)

Concepts of Costs: Money and Real Cost, Social Cost, Private Cost, Explicit and Implicit Cost,
Opportunity Cost; Relationship between Average, Marginal and Total Cost; Derivation of Short
Run and Long Run Cost Curves; Concepts of Revenue: Types and Interrelationship

Module III: Factor Pricing (12 lectures)

Marginal Productivity Theory of Distribution; Rent: Ricardian Theory of Rent, Modern Theory
of Rent, Quasi Rent; Wages: Modern Theory of Wages; Collective Bargaining; Supply Curve of
Labour; Interest: Classical Theory of Interest, Loanable Funds Theory of Interest; Profit: Risk
and Uncertainty Theory, Innovation Theory

Module IV: Equilibrium in Different Market Structure (12 Lectures)
Concept Of Equilibrium: TR – TC And MR – MC Approach; Features of Perfect Competition;
Monopoly and Monopolistic Competition, Short Run and Long Run Equilibrium of Firm and
Industry under each Market Condition; Selling Cost and Wastages under Monopolistic
Competition

Note: we may include case studies and numerical examples for modules 1, 2 and 4 from
examination point of view.

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