Microeconomics is the study of rational choice behavior on the part of individual consumers and firms. In general, economists are interested in how market mechanisms solve extremely complex resource allocation problems. This course presents a logical and coherent framework in which to organize observed economic phenomena. Several economic “models” are developed and analyzed in order to help explain and predict a wide variety of economic phenomena. Microeconomic theory is based on the notion that individuals (and firms) have well defined objectives (e.g., maximizing utility or profits) and behave systematically according to the incentives and constraints of their economic environment. It is this framework which allows the economist to gain a fundamental understanding of the choices people make in an economic setting.
Course Objectives & Learning Outcomes:
By the end of the course, student should be able to:
- Apply the concepts of economics to critically analyze and explain situations encountered in the real world. Develop students’ knowledge of economic terminology and theory.
- Students should know the behavioral assumptions economics makes about consumers and firms, i.e. consumers behave so as to maximize their utility and firms behave so as to maximize their profit.
- Students should be familiar with the basic models of economics: the utility maximization, profit maximization, cost minimization, and expenditure minimization problems.
- Analyze decision-making by individual consumers and producers
- Analyze and critically evaluate policies designed to affect individual behaviour and market outcomes.
Microeconomics-I and Mathematics-I
Texts and References:
- Nicholson and Snyder – Intermediate Microeconomics and Its Application, 11th Edition.
- Varian, H (Varian) – Intermediate Microeconomics; Norton and Company, 6th Edition.
- Robert S. Pindyck and Daniel L. Rubinfeld, MicroEconomics – 7th Edition, Pearson Higher Ed, USA.
- Besanko and Brae utigum (B&B)- MicroEconomics; An Integrated Approach, Wiley and Company, 2001