Introduction - The economic problem. Consumer Theory: Consumer behavior , consumer equilibrium , Income and substitution effects – Slutsky’s equation, consumer surplus , the demand curve . Theory of Production: Production functions , production in the short run , the iso-cost curves, profit maximization of the firm, returns to scale , economies of scale , production in the long run . Cost theory: the nature of the cost, the cost curves in the short and long run and their relations, cost minimization , the expansion path of the firm , optimum point . Market Forms: perfect competition (equilibrium of the competitive firm , Pareto optimum and social welfare ) , monopoly (concept of monopoly power or market power , natural monopolies , barriers to entry , price discrimination , social welfare losses due to monopoly power ) . Comparison of perfect competition and monopoly in terms of social welfare .