Learning Outcomes:
The aim of this module is to give you the conceptual basis and the necessary tools for understanding modern microeconomics. By the end of the module, you should have an understanding of basic microeconomic theory of consumer behaviour and the theory of the producer behaviour. You will have a clear understanding of the assumptions behind these microeconomic models and of the techniques used to analyse them. On successful completion of this module you will also have plenty of practice at problem solving through pop quizzes and self-directed learning.
Indicative Module Content:
The course textbook is: Jeffery Perloff, Microeconomics, Pearson Prentice Hall International Edition.
1. Introduction: Supply and Demand (Chapters 2 & 3)
a. The basics of Supply and Demand;
b. Applying the Supply and Demand Model.
2. Consumer Theory (Chapters 4 & 5)
a. Budget constraints; preferences; utility; choice;
b. Utility maximization and derivation of individual demand;
c. Market demand; consumer surplus; equilibrium.
3. Theory of the Firm (Chapters 6, 7 & 8)
a. Production; isoquant; costs;
b. Cost minimization and derivation of cost function;
c. Profit maximization and derivation of firm supply and industry supply.