Course outline

I)Introduction

What is economics? Scarcity, Marginal benefit and cost.
MB1

Supply and Demand
Demand and supply curve, equilibrium price, determinants of supply and demand, price ceilings and floors
MB 3,4

Government and market failure
Complications to both simply supply and demand and government solutions to it
MB17

II)Consumer Behavior


Elasticity
Price elasticity of demand and supply, determinants of price elasticity, relationsthip between elasticity and revenues
MB7

Consumer Choice
Total vs Marginal utility, law of diminishing marginal utility, utility maximization
MB8

III) Cost of Production

Cost analysis
Production functions, marginal productivity, law of diminishing returns, accounting vs economic profit, long run costs and economies of scales.
MB9

IV) Market Structure

Perfect Competition
What is perfect competition? Output and price maximization, competitive firm in the short vs long run, economies of scale. How realistic is this market
MB10

Monopoly
What is a monopoly? Model of monopoly market Price discrimination,
MB11

Monopolistic competition
Differences between monopolistic competition and both perfect competition and monopoly. Price and output in price searcher market, real world competition
MB12
(216-222)

Oligopoly
Introduction to Game Theory and applications
MB12
(223-236)

V) Extensions

International Trade
What is Free trade?
MB24