This book is designed as the updated syllabus of B.A.(Hons.) Economics and B.Com. (Hons.) of the universities. Also added various topics of UGC new syllabi of B.A. (Hons.) Economics, B.Com. (Hons.) and B.A. (Hons.) Business Economics under the ';Choice Based Credit System' (CBCS) which is to be adopted by all India Universities. It explains the use of graphs in economics, various types of curves and measurement of their slopes, the concept of function, both linear and power functions, the concept of derivatives and the use of differential calculus as optimising technique for solving the problems of maximisation and minimisation in economics. This book will help the students to understand various economic theories better as economics in recent years has become increasingly mathematical.
This book will also be of immense use for professional courses such as Business Economics, BBA, CA, ICWA and for the candidates preparing for all India and State level competitive examinations such as IAS, IES and allied services.

Contents

PART I THE SCOPE AND METHODOLOGY OF ECONOMICS 1

Scarcity and Choice 3
Chapter 2 Production Possibility Curve Choice and Opportunity Cost 18
Chapter 3 The Scope of Economics 28
Appendix to Chapter 3 43
Chapter 4 Science of Economics and Its Methodology 68
Chapter 5 Basic Competitive Model and Role of Price Mechanism 82
Chapter 6 Alternative Economic Systems and New MarketFriendly Economic Reforms 101
Appendix to Chapter 21 497
A General Analysis 500
Chapter 23 Equilibrium of the Firm and Industry Under Perfect Competition 520
Appendix to Chapter 23 546
Chapter 24 Price Determination Under Perfect Competition 551
Chapter 25 Stability of Equilibrium and Cobweb Model 569
Chapter 26 Price and Output Under Monoploy 577
Chapter 26A Government Policies Towards Monopoly and Competition 611

PART II THE THEORY OF CONSUMERS BEHAVIOUR AND DEMAND 117

Chapter 7 Demand Supply and Market Equilibrium 119
Chapter 7A Applications of Demand and Supply Analysis 143
Chapter 7B Consumer Surplus Producer Surplus and Economic Efficiency of Perfectly Competitive Market 153
Cardinal Utility Analysis 164
Chapter 9 Indifference Curve Analysis of Consumers Demand 181
Appendix A to Chapter 9 235
Appendix B to Chapter 9 240
Chapter 10 Marshalls Cardinal Utility Analysis Vs Indifference Curve Analysis 247
Chapter 11 Some Important Applications of Indifference Curves 256
Chapter 11A Labour Supply and Saving Decisions 268
Chapter 12 Revealed Preference Theory of Demand 285
Chapter 13 Elasticity of Demand 296
Appendix to Chapter 13 331
Chapter 14 Consumer Surplus 339

PART III THE THEORY OF PRODUCTION AND COST 355

Chapter 15 Factors of Production 357
Returns to a Factor 369
Chapter 17 Production Functions with Two Variable Factors 382
Chapter 18 Optimum Factor Combination 412
Chapter 19 Cost of Production and Cost Curves 430
Chapter 20 Elasticity of Supply 467

PART IV THEORY OF FIRM AND PRICING IN DIFFERENT MARKET STRUCTURES 475

Chapter 21 Main Market Forms and Concepts of Revenue 477
Chapter 27 Price Discrimination 622
Appendix to Chapter 27 640
Chapter 28 Price Under Monopolistic Competition 645
Chapter 29 Price and Output Under Oligopoly 676
Appendix to Chapter 29 699
Chapter 30 Sales Maximisation Model of Oligopoly 715
Chapter 31 Theory of Games and Competitive Stratigy 721

PART V FACTOR PRICING AND INCOME DISTRIBUTION 737

A General View 739
Chapter 33 Wage Determination in Competitive and Imperfectly Competitive Markets 778
Appendix to Chapter 33 808
Chapter 34 The Theory of Rent 813
Chapter 35 Alternative Theories of Interest 832
Chapter 36 The Theory of Profits 850

PART VI GENERAL EQUILIBRIUM ANALYSIS AND WELFARE ECONOMICS 859

Chapter 37 General Equilibrium Analysis 861
An Introduction 878
Chapter 39 Economic Efficiency and Pareto Optimality 883
Chapter 40 Market Failures Externalities and Public Goods 898
Compensation Principle 915
Chapter 42 Social Welfare Function 923
Chapter 43 Markets with Asymmetric Information 931
Chapter 44 Choice Under Risk and Uncertainty 947