Course Contents

1. Production Costs  Measuring Costs  Short Run Costs  Long run Costs  Lower Costs in the long run  Cost of producing multiple goods 2. Competitive Firms and Markets  Introduction to various market structures (Perfect Competition, Monopolistic competition, Oligopoly, Monopoly)  Competition  Profit maximization  Competition in the short run  Competition in the long run 3. Properties and Applications of the Competitive Model  Zero profit for competitive firms in the long run  Producer welfare  How competition maximizes welfare  Policies that shift supply curves  Policies that create a wedge between supply and demand curves  Comparing both types of trade policies 4. General Equilibrium and Economic Welfare  General Equilibrium  Exchange Economy: Trading between two people  Competitive Exchange  Production and Trading  Efficiency and Equity

Course Synopsis

 to provide the students with comprehensive understanding of the theory of costs of production and its quantitative analysis.  the introduction of various market structures.  to deliver the comprehensive knowledge about the nature and working of perfectly competitive market .  to introduce the framework of general equilibrium and the concept of economic welfare.

Course Learning Outcomes

At the end of this course students would be able to:  understand the costs of production and its various types.  analyze the short run and long run cost functions.  utilize the analytical tools to investigate the working of perfectly competitive firms and markets.  understand the basics of general equilibrium framework and welfare economics.