ECO2404CM MATHEMATICAL ECONOMICS – I
(Theory)
LEARNING OUTCOME :
On successful completion of the course, the student will be able to
4 Hrs./Wk.

understand basic mathematical techniques in algebra and calculus

use mathematical statements to represent economic relationship
apply mathematical methods to solve economic problems

COURSE OUTLINE :
UNIT-I : NATURE AND SCOPE OF MATHEMATICAL ECONOMICS
5 Hrs.
Introduction – Meaning – Nature – Scope – Role of Mathematics in Economics – Difference
between Mathematical Economics, Economics, Statistics and Econometrics
UNIT-II : MATHEMATICAL REPRESENTATION OF FUNCTIONS
5 Hrs.
Utility, consumption, demand, supply, cost, revenue, profit and production functions.
UNIT-III : OPTIMIZATION OF DEMAND, COST, REVENUE AND PROFIT FUNCTIONS
25 Hrs.
Demand – point elasticity of demand – total, average and marginal cost functions – relationship
between AC and MC – minimum average cost – total, average, and marginal revenue curves –
relationship between AR and MR curves – revenue and profit maximization.
UNIT-IV : CONSTRAINED OPTIMIZATION IN CONSUMER BEHAVIOUR
15 Hrs.
Utility Function – Properties of Indifference Curve – Utility Maximization – Partial Elasticities of
Demand and Nature of Goods.
UNIT-V : INPUT- OUTPUT ANALYSIS
10 Hrs.
Input – Output Analysis (2 Sector Model) – Assumptions – Technical Coefficient Matrix – Closed
and open Model – Hawkins-Simon Conditions – Determination of Equilibrium Output of a Closed
Model.
TEXT BOOK(S)
Mehta B.C. and Madnani G.M.K., Mathematics for Economists, New Delhi: Sultan Chand &
Sons, 2013.
REFERENCE BOOK(S)
Chiang Alpha C., Fundamental Methods of Mathematical Economics, Singapore, Mcgraw Hill
Book
Company,
1987.
Henderson James & Richard E. Quandt, Micro Economic Theory, A Mathematical Approach,
New
Delhi,
McGraw
Hill
Kogakusha
Ltd.,
1971.
Weber Jean E., Mathematical Analysis – Business and Economic Applications, New York,
Harper International Edition, 1982.
Blue Print
Unit
Contact
Hours
Marks Required
questions
I
5
2
12
II
5
2
12
III
25
10
60
IV
15
6
36
V
10
5
30
Total
60
25
150
Unit I:
Introduction – Meaning Nature – Scope – Role of Mathematics in Economics – Difference between
Mathematical Economics, Economics, Statistics and Econometrics