**Theory of Firms:**

Firm Technology, Contrasts and Similarities between firms and consumer behavior analysis, Production function and its properties, Return to scale, Productivity Curve: Total, average & marginal productivity curves along with their characteristics, stages of production, time horizons of decision making, short run, long run and very long run, Isoquants, Marginal rate of technical substitution (MRTS), Diminishing MRTS, Output elasticity of inputs, Isocost lines, Ridgge lines, Firms optimization behavior: constrained output maximization, constrained cost minimization and profit mazimization, Producers equilibrium, the expansion path, Isolines, Euler’s theorem, Linearly homogeneous production, Cobb-Douglas (CD) production function with properties and estimation. Constant elasticity of substitution (CES) production function.

**Cost of Production:**

Cost of production-fixed and variable, total and marginal cost, nature of cost, cost function and curves, short run and long run, diminishing return and short run costs, marginal average rule, long run cost curves as an envelope of short run cost curves, economics of scale of long run average cost, Statistical studies of long run average cost curves, Cost and profit functions with variable factors,

**Distribution of Income:**

Pareto and Log-normal income distribution, properties, fitting, determination of parameters, implications and limitations, Concentration curve, Lorenze curve and equation, Gini’s concentration ratio, Engel’s law and curve, Fitting of Engel’s curve from family budget data

**National Income:**

Concept, Gross domestic Product, Gross national product, Net national product, Nationa Income, Personal Income, Disposable Income, measurements and problems, Difficulties in the estimation of GNP.

**Index Numbers:**

Definition and necessity, Different Types of index numbers, Simple and weighted indices, Test of Index numbers, Cost of living Index, Constructions of different types of living index.

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