Micro Economics

Unit I — Introduction to Microeconomic Theory

Definitions of Economics: Wealth, Welfare, Scarcity, Modern · Nature and Scope of Microeconomics · Methodologies: Inductive and Deductive Approaches · Positive vs Normative Economics · Forms of Economic Analysis: Partial vs General; Static vs Dynamic · Micro vs Macro Economics · Basic Economic Problems: What, How, and For Whom to Produce · Production Possibility Curve (PPC): Opportunity Cost, Marginal Rate of Transformation, PPC and Growth · Economic Systems: Market, Command, and Mixed Economies · Relationship between Economics and Law: Overview of Economic Offences and Legal-Economic Regulations

• The Nature and Significance of economic science and its relevance to law, Difference between Micro and Macro Economics, Positive economics and Normative economics

Unit II — Demand, Supply and Consumer Behaviour

Law of Demand and Law of Supply; Demand and Supply Functions · Individual vs Market Demand and Supply · Elasticity of Demand: Price, Income, Cross – Concepts, Measurement and Applications · Elasticity of Supply: Concept, Measurement · Market Equilibrium and Price Determination; Changes in Demand and Supply · Utility Analysis: · Cardinal Approach – Total and Marginal Utility, Law of Diminishing Marginal Utility · Ordinal Approach – Indifference Curve, Budget Line, Consumer Equilibrium · Consumer Surplus and Producer Surplus · Applications: Taxation, Subsidies, Price Ceiling and Floor, Work vs Leisure Choices

Unit III — Production, Cost, Revenue and Market Structures

Theory of Production: · Factors of Production: Fixed and Variable · Laws of Returns: Law of Variable Proportions and Returns to Scale · Isoquants and Iso-cost Lines; Producer’s Equilibrium · Cost Analysis: · Short Run and Long Run Cost Curves (TC, AC, MC) · Revenue Concepts: Total, Average, Marginal Revenue · Market Structures: · Perfect Competition, Monopoly, Monopolistic Competition, Oligopoly · Features, Price and Output Determination · Selling Costs, Excess Capacity, Allocative Efficiency vs Inefficiency · Game Theory (Introductory): Prisoner's Dilemma, Collusive and Non- Collusive Oligopoly · Dumping: Legal Perspective and Cases under WTO/International Law · Overview of Indian Competition Law

Unit IV — Factor Pricing and Income Distribution

Concept of Derived Demand and Joint Demand · Labour Market: · Wage Determination · Role of Trade Unions and Collective Bargaining · Minimum Wage Legislation and Labour Exploitation · Rent: Ricardian Theory, Quasi-Rent, Economic Rent, Transfer Earnings · Interest: Classical, Loanable Funds, Keynesian (Liquidity Preference) Theories · Theories of Profit: Risk-Bearing, Uncertainty, Marginal Productivity, Monopoly and Dynamic Theories · Legal Implications of Factor Markets and Wage Regulation

• Minimum Wages and Payment of Wages

Unit V — Public Goods, Externalities and Market Failure (Approx. 8–10 hours)

Classification of Goods: · Private, Public, Club, and Common Property Goods (Based on Excludability and Rivalry) · Free Rider Problem and Under-provision of Public Goods · Externalities: · Production and Consumption Externalities · Positive vs Negative Externalities · Market Failure: Causes and Consequences · Common Property Resources and the Tragedy of Commons · Government Intervention: Regulation, Taxation, Subsidies, Legal Frameworks · Environmental Economics and Legal Controls on Externalities (e.g., pollution laws, carbon taxes)