Monaco are now unbeaten in their last 15 home league games, having won 14 of them.
The win put them on 22 points from 10 games, three behind PSG, who travel to bitter rivals Olympique de Marseille for the league's 'clasico' on Sunday.
Caen have not won at Monaco in 15 games, losing nine of them and Saturday's match was never to go their way, even though they enjoyed possession in the early stages.
Monaco went ahead on 21 minutes when Balde netted his first goal in Ligue 1, beating Remy Vercoutre after being perfectly set up by Thomas Lemar's through ball.
They came close to making it 2-0 in the 34th when Jemerson's header crashed onto the bar.
Falcao, however, doubled the tally just before the hour mark with a penalty, scoring his 13th league goal of the season.
Caen barely threatened as Monaco coolly controlled their advantage.
(Reporting by Julien Pretot; Editing by Christian Radnedge)
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