Economic Analysis

Basic concepts-wants, goods, wealth, utility, consumption, demand and supply, Consumer behaviour-law of diminishing marginal utility and equi-marginal utility, cardinal and ordinal utility approach for consumer’s behaviors. Theory of demand-law of demand, demand schedule, demand function, determinates of demand, individual consumer demand and market demand, demand forecasting, elasticity of demand, price elasticity, income elasticity and cross elasticity, Consumer’s surplus. Theory of production- concepts of firm and industry, basic factors of production and their role, production function for a single product, nature of production function, laws of returns. Concepts of costs-fixed and variable costs, short run and long run costs, average and marginal costs, economics and diseconomies of scale. Concept of market- types of market, pricing and output under different market situations, market price and normal price, price determination under perfect Competition, monopoly, oligopoly and monopolistic competition. National income – GDP, GNP, NNP, disposable personal Income, per capita income, inflation. Economic features and characteristics of dairy sector in India. Dairy development strategy with special emphasis in post- independence era and Operation Flood Programme