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Introductory Microeconomics Class 12
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Introduction
A Simple Economy
Central Problems of an Economy
1
Organisation of Economic Activities
The Centrally Planned Economy
The Market Economy
Positive and Normative Economics
Microeconomics and Macroeconomics
Plan of the Book
Theory of Consumer Behaviour
2
The Consumer’s Budget
Budget Set
Budget Line
1
Changes in the Budget Set
Preferences of the Consumer
Monotonic Preferences
Substitution between Goods
Diminishing Rate of Substitution
Indifference Curve
Shape of the Indifference Curve
Indifference Map
Utility
1
Optimal Choice of the Consumer
Demand
Demand Curve and the Law of Demand
Normal and Inferior Goods
Substitutes and Complements
Shifts in the Demand Curve
Movements along the Demand Curve and Shifts
in the Demand Curve
Market Demand
Elasticity of Demand
Elasticity along a Linear Demand Curve
Factors Determining Price Elasticity of Demand for a Good
Elasticity and Expenditure
Production and Costs
Production Function
1
The Short Run and the Long Run
Total Product, Average Product and Marginal Product
Total Product
Average Product
Marginal Product
The Law of Diminishing Marginal Product and the Law of
4
Variable Proportions
1
Shapes of Total Product, Marginal Product and Average Product Curves
Returns to Scale
Costs
Short Run Costs
Long Run Costs
The Theory of the Firm Under Perfect Competition
Perfect competition: Defining Features
Revenue
Profit Maximisation
Condition 1
Condition 2
Condition 3
The Profit Maximisation Problem: Graphical Representation
Supply Curve of a Firm
Short Run Supply Curve of a Firm
Long Run Supply Curve of a Firm
The Shut Down Point
The Normal Profit and Break-even Point
Determinants of a Firm’s Supply Curve
Technological Progress
Input Prices
Unit Tax
Market Supply Curve
Price Elasticity of Supply
The Geometric Method
Market Equilibrium
Equilibrium, Excess Demand, Excess Supply
Market Equilibrium: Fixed Number of Firms
Market Equilibrium: Free Entry and Exit
Applications
Price Ceiling
Price Floor
Non-Competitive Markets
Simple Monopoly in the Commodity Market
Market Demand Curve is the Average Revenue Curve
Total, Average and Marginal Revenues
Marginal Revenue and Price Elasticity of Demand
Short Run Equilibrium of the Monopoly Firm
Other Non-perfectly Competitive Markets
Monopolistic Competition
How do Firms behave in Oligopoly?
12th
Economics
NCERT
Text Book
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FULL NCERT BOOK - ZIP
Economics 12 Hindi Version Full NCERT Text
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