GUJARAT TECHNOLOGICAL UNIVERSITY

Programme: Bachelor of Business Administration

Semester-1
Subject Name: Microeconomics
Subject Code: 1510102

Rationale:
This course provides an introduction to the central concepts of microeconomic analysis and
decision-making, such as scarcity, allocation of resources, demand and supply, elasticity and
marginal utility. The concepts are then used to explain and analyze market structures. Other
topics may include production and cost analysis.

Course Scheme:

Teaching
Credits Examination Marks
Scheme Total
Theory Practical Marks
L T P C
ESE (E) PA(M) ESE (V) PA (I)
3 0 0 3 70 30 0 50 150

Course Outcomes:

Sr. No. Course Outcomes

CO1 Describe and apply the methods for analysing consumer behaviour through demand
and supply, elasticity and marginal utility.
CO2 Analyze the relationship between inputs used in production and the resulting outputs
and costs
CO3 Identify and appraise various models of how markets are organized, and the price
and output decisions for maximizing profit in different market structures.

Course Content:

Unit Content No. of Weightage

No. Hours (%)
1 INTRODUCTION: 06 15%
 Overview of Economics: Meaning, Definition, Nature and
Scope, Need to Study Economics, Usefulness in Managerial
Decision Making
 Principles of Economics: Opportunity Cost Principle,
Marginal Principle, Incremental Principle, The Equi-Marginal
Principle, Time Perspective Principle, Diminishing Returns
Principle
2 THE MARKET FORCES OF SUPPLY AND DEMAND: 10 30%
 Analysis of Individual Demand: Meaning of Demand,
Utility, Total Utility, Marginal Utility, The Law of
Diminishing Marginal Utility, Cardinal Utility, Ordinal Utility,
Law of Demand, Demand Schedule, Demand Curve, Factors
behind the Law of Demand, Exceptions
 Supply: Law of Supply, Supply Curve, Market Supply,
Factors affecting Market Supply

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 GUJARAT TECHNOLOGICAL UNIVERSITY
Programme: Bachelor of Business Administration
Semester-1
Subject Name: Microeconomics
Subject Code: 1510102
 Analysis of Consumer Behaviour: Indifference curve,
Marginal Rate of Substitution
 Analysis of Market Demand: Meaning of Market Demand,
Types of Demand, Determinants of Market Demand, Demand
function and Equilibrium
 Demand Elasticities: Elasticity of Demand, Price Elasticity of
Demand, Determinants of Price Elasticity of Demand, Cross-
Elasticity of Demand, Income-Elasticity of Demand
3 PRODUCTION AND COST ANALYSIS: 10 30%
 Theory of Production: Meaning of Production, Short-run and
Long-run Production Function, Law of Variable Proportions,
Long-Term Laws of Production, Isoquant Curve, Laws of
Return to Scale
 Theory of Cost: Types of costs - Fixed and Variable Costs,
Total, Average and Marginal Costs, Short-Run and Long-Run
Costs, Incremental and Sunk Costs, Historical and Replacement
Costs; Short-Run Cost-Output Relations and Cost Curves;
Economies and Diseconomies of Scale
 Revenue - Total, Average and Marginal Revenue - meaning
and their relationship
4 MARKET STRUCTURE AND PRICING DECISION: 08 25%
 Characteristics of Perfect & Imperfect Market Structures
 Price and Output Decisions Under Different Market Structures
- Perfect Competition, Monopolistic Competition, Monopoly,
Oligopoly
5 Additional topics for Project Report and Presentations 06 30 Marks
(Continuous Evaluation Component) out of 50
 Various sectors of Indian Economy
 Economic Environment of India
 Applying the Economic Concepts to understand the Market
 Consumer Surplus; Producer Surplus and The Efficiency of the
Markets
 Analyzing the Market Structure of Various Products / Services
 Evaluating the Elasticities of the Products
Total Hours/Marks: 70

Suggested Specification Table for Question Paper Design:

Un Distribution of Theory Marks

Teaching
it Unit Title (Assessment as per Revised Bloom’s Taxonomy Level*)
Hours
No. RM UN AP AN EL CR Total Marks
I Introduction 06 5 5 0 0 0 0 10

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 GUJARAT TECHNOLOGICAL UNIVERSITY
Programme: Bachelor of Business Administration
Semester-1
Subject Name: Microeconomics
Subject Code: 1510102
The Market
II Forces Of Supply 10 3 5 7 6 0 0 21
And Demand
Production And
III Cost Analysis 10 3 5 7 6 0 0 21

Market Structure
IV And Pricing 08 0 6 6 6 0 0 18
Decision
Internal
V Evaluation 06 0 0

Total 40 11 21 20 18 0 0 70
*RM: Remember, UN: Understand, AP: Apply, AN: Analyze, EL: Evaluate, CR: Create
Note: This specification table provides general guidelines to assist student for their learning and
to teachers to teach and question paper designers/setters to formulate test items/questions to
assess the attainment of the UOs. The actual distribution of marks at different taxonomy levels
in the question paper may slightly vary from above table.

Suggested Student Activities for PA: (50 Marks)

Additional topics for Project Report and Presentations
 Various sectors of Indian Economy
 Economic Environment of India
 Applying the Economic Concepts to understand the Market
 Consumer Surplus; Producer Surplus and The Efficiency of the Markets
 Analyzing the Market Structure of Various Products / Services
 Evaluating the Elasticities of the Products

Suggested Learning Resources:

S. Title of Book Author Publication with place, year
No. and ISBN
Managerial Economics D. N. Dwivedi Vikas Publishing House Pvt. Ltd., New
1 Delhi, 2021, 9th Edition, ISBN: 978-93-
545-3130-9
Economics: Principles N Gregory Cengage Learning India Pvt. Ltd., New
2
& Applications Mankiw Delhi, 2007, ISBN-13:978-81-315-0577-9
Managerial Economics Geetika, Piyali McGraw Hill Education Pvt. Ltd., 2011,
3 Ghosh, Purba Roy ISBN-13: 978-0-07-107803-0
Choudhary
Microeconomics – O’Sullivan, Pearson, New Delhi, 2020, 10th Edition,
4 Principles, Applications Sheffrin, Perez ISBN-13: 978-01-356-4011-1
and Tools
Software / Learning Websites
https://nptel.ac.in/courses/109104125
https://nptel.ac.in/courses/110104093
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