Syllabus B.Com. (Hons.) Paper X: MICROECONOMIC THEORY AND APPLICATIONS-II COURSE CONTENTS 1. Monopoly Market Structure: Kinds of monopoly, Monopolist's decision and equilibrium, Shifts in demand curve and the absence of the supply curve. Measurement of monopoly power and the rule of thumb for pricing. Horizontal and vertical integration of firms. Comparison of pure competition and monopoly. The social costs of monopoly power. Price discrimination, Peak-load pricing. Unit II 2. Monopolistic Competition and Oligopoly: Monopolistic competition price and output decision-equilibrium. Monopolistic Competition and economic efficiency Oligopoly and Interdependence Cournot's duopoly model, Stackelberg model, Kinked demand model. Prisoner's dilemma, collusive oligopoly price-leadership model dominant firm, cartels, sales maximization. Contestable markets theory. Pricing Public Utilities. Unit III The market for Factor Inputs: Determination of factor rewards in perfect input markets in the short & long runs under conditions of perfect and imperfect commodity markets. Determination of factor rewards under conditions of monopsony, monopolistic and monopsonistic exploitation. Role of trade unions. Rental element in factor remuneration. Government intervention in the factor market. Direct or through the regulatory agency 15 lectures 4. Inter-temporal Analysis and Choice under Uncertainty: Inter- temporal choice - Stocks versus flows, present discounted values, capital investment decisions, investment decisions by consumers, determination of interest rates. Risk, preferences towards risk reducing risk. Unit V 5. General Equilibrium and Market Failure: General equilibrium & efficiency (in Pareto optimal terms). Market failure and the sources of market failure. Market power and inefficiency, asymmetric information quality uncertainty, market signalling, moral hazard, principal-agent problem, Public goods and externalities 15 lectures