BIRLA INSTITUTE OF TECHNOLOGY AND SCIENCE, Pilani
K K Birla Goa Campus
SECOND SEMESTER 2025-2026
Course Handout (Part II)
Date: 05.01.2026
In addition to part I (General Handout for all courses appended to the time table) this portion gives further
specific details regarding the course.
Course No.
Course Title
Instructor-in-charge
: ECON F242
: Microeconomics
: Dr. RAJORSHI SEN GUPTA
1. Scope and objective of the course:
The objective of the course is to introduce some of the basic models that economists use to explain the
behavior of consumers, firms, and operation of markets. These models are central to the study of all areas of
economics. Students will learn theories related to functioning of perfectly and imperfectly competitive
markets, strategic behavior of economic agents and how to analyze the impact of various policies at
microeconomic level.
Text Book:
Walter Nicholson and Christopher Snyder, “Microeconomic Theory: Basic Principles and Extensions”, Tenth
Edition
3. Reference Book:
Varian, H. “Intermediate Microeconomics: A Modern Approach”, Norton & Company; 9th International
student edition
4. Course Plan:
No. of
Learning Objectives
Lectures
1-2
Introduction to Microeconomics
Topics
Reference
Role of economic models in
Microeconomics; Mathematical tools for
Microeconomics
Text Ch
1,2
3-5
Preferences and Utility: understand
ways in which economists
characterize individuals’ preferences
Utility function, Trade-offs, slope and
curvature of indifference curves, MRS
Text Ch 3
6-8
Utility Maximization and Choice:
examine the basic model of choice
that economists use to explain
individuals’ behavior
Indirect Utility Function, Expenditure
Minimization, Expenditure Function
Text Ch 4
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BIRLA INSTITUTE OF TECHNOLOGY AND SCIENCE, Pilani
K K Birla Goa Campus
9-12
Income and Substitution Effects:
study how the quantity of a good that
an individual chooses is affected by
changes in price, Consumer surplus:
monetary measure of the gains and
losses that individuals experience
when prices change
Demand Functions, Changes in Income,
Changes in a good’s price, Compensated
Demand Curves, Demand Elasticities,
Measurement of consumer surplus
Text Ch 5
13-15
Demand Relationships among Goods
Substitutes and Complements, Net
Substitutes and Complements
Text Ch 6
16-18
Theory of firm: production function
Marginal Productivity, Rate of Technical
Substitution, Returns to Scale, Elasticity
of Substitution
Text Ch 9
19-22
Theory of firm: cost functions
Cost-Minimizing Input Choices, Cost
Functions, Shephard’s Lemma, ShortRun & Long-Run analysis
Text Ch 10
23-27
Theory of firm: profit maximization
Profit Maximization in Short and Long
run, Input Demand & output supply
Text Ch 11
28-32
Applications of Perfectly competitive
model
Comparative Statics Analysis, Welfare
Analysis
Text Ch 12
33-37
Monopolistic markets
Pricing and welfare analysis under
monopolistic market, impact of tax on
monopoly equilibrium
Text Ch 14
38-42
Price Discrimination
Different forms of price discrimination
Text Ch 14
43-46
Imperfectly Competitive market
Oligopolistic markets: Cournot model
Text Ch 15
47-48
Collusion between firms
Pricing decisions of cartel, stability of
cartel
Text Ch 15
*Some topics may be introduced/modified, subject to availability of time.
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BIRLA INSTITUTE OF TECHNOLOGY AND SCIENCE, Pilani
K K Birla Goa Campus
5. Evaluation Schedule:
Component
Duration
Marks
MID TERM EXAM
[Closed Book]
90 min
35
As per Time Table
COMPREHENSIVE EXAM
[Closed Book]
Quiz/Assignment
3 Hours
40
As per Time Table
25
Date & Time
TBA
[Open Book Component]
6. Consultation:
Dr. Rajorshi Sen Gupta: rajorshis@goa.bits-pilani.ac.in, Saturday 11 AM - 12 PM
7. Criterion for Clearing the course:
A student should obtain 10% of the average of the top 3 performers in the class, or 20% of the median
marks of the class, whichever is lower to clear the course.
8. Make-up Policy:
•
•
•
•
Make-up for any component of evaluation will be given only in genuine cases of absence. Medical
cases must be supported with necessary documents from Medical Center.
If the absence is anticipated then prior permission of the Instructor-in-Charge before the
examination is necessary. Such requests must be submitted at least 1 day before the scheduled
evaluative component.
Requests submitted without supporting documents will not be entertained.
In other exceptional circumstances the request for make-up should reach the Instructor-in- Charge
[Associated Dean, AUGSD in case of Comprehensive examination] at the earliest.
Instructor-in-Charge
ECON F242
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