Monopoly: Definition and assumption of model. Demand curve under monopoly. Short-run equilibrium. Long-run equilibrium. Price discrimination. Monopolistic Competition. Meaning: product differentia-tion, many sellers. Pricing decision under monopolistic competition; short-run and long-run equilibrium. excess Capacity. Oligopoly: Concepts, Duopoly models. Kinked demand curve. Theory of games (brief introduction). Brief discussion of behavioural theories of the firm.

Theory of Distribution.

Marginal productivity theory in perfectly competitive markets; demand for a factor of production, supply of a variable factor; product exhaustion; distribution and relative factor share, elasticity of substitution; technological progress. Modifications of the theory - introduction of imperfections in product and factor markets; monopoly and monopsony; trade unions. Theory of rent: Ricardian treatment. Modern treatment - derived demand, transfer costs, opportunity costs quasi-rent. Capital and interest: as an application of marginal productivity theory.

Determination of rate of interest by supply and demand.

Welfare Economics: Pareto optimality; optimum conditions of production and exchange. The role of welfare economics in modern economic analysis.