| 1 |
Reading |
The Themes of Microeconomics:
Trade-offs, prices and markets, theories and models, positive and normative analysis, competitive versus noncompetitive markets, market price, market definition—the extent of a market, real and nominal prices. |
Lecture & Question Answer & Problem Solving |
| 2 |
Reading |
The basics of supply and Demand:
Supply and Demand, the supply curve, the demand curve, the market mechanism, changes in market equilibrium, elasticities of supply and demand, point and arc elasticities, short-run and long-run elasticities, effects of government intervention—price controls. |
Lecture & Question Answer & Problem Solving |
| 3 |
Reading |
Consumer behavior:
Consumer preferences, indifference curves and maps, the marginal rate of substitution, perfect substitutes and perfect complements, budget constraints, budget line, the effects of changes in income and prices, consumer choice, marginal utility and consumer choice, living indexes. |
Lecture & Question Answer & Research |
| 4 |
Reading |
Individual and market demand:
Individual demand, income and substitution effects, market demand, consumer surplus, externalities empirical estimation of demand. |
Lecture & Question Answer & Research |
| 5 |
Reading |
Production:
Firms and their production decisions, average and marginal products, the slopes of the product curve, the average product of labor curve, the marginal product of labor curve, the law of diminishing marginal returns, isoquants, input flexibility, diminishing marginal returns, substitution among inputs, production functions, returns to scale. |
Lecture & Question Answer & Research |
| 6 |
Reading |
The cost of Production:
Measuring cost, economic cost and accounting cost, opportunity cost, fixed, marginal and average costs, cost in the short run, cost in the long run, the isocost line cost minimization,the expansion path and long-run costs , long-run versus short-run cost curves, the relationship between short-run and long-run cost, production with two outputs—economies of scope, product transformation curves. |
Lecture & Question Answer & Problem Solving |
| 7 |
Reading |
Profit maximization and competitive supply:
Perfectly competitive markets, profit maximization, marginal revenue, marginal cost, and profit maximization, choosing output in the short run, short-run profit maximization by a competitive firm, the competitive firm’s short-run supply curve, the firm’s response to an input price change the short-run market supply curve, elasticity of market supply, producer surplus in the short run, long-run profit maximization. |
Lecture & Question Answer & Problem Solving |
| 8 |
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MID-TERM EXAM |
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| 9 |
Reading |
The analysis of competitive markets:
Evaluating the gains and losses from government policies—consumer and producer surplus , the efficiency of a competitive market, minimum prices, price supports and production quotas, import quotas and tariffs, the impact of a tax or subsidy. |
Lecture & Question Answer & Problem Solving |
| 10 |
Reading |
Market Power of monopoly:
Monopoly, average revenue and marginal revenue, the monopolist’s output decision, shifts in demand, the effect of a tax, production, price, and monopoly power, sources of monopoly power, the elasticity of market demand, the interaction among firms, the social costs of monopoly power, price regulation, monopsony, monopsony and monopoly compared. |
Lecture & Question Answer & Problem Solving |
| 11 |
Reading |
Market Power of monopsony:
Monopoly, Average Revenue and Marginal Revenue, Monopsony profit maximization, Monopsony Power, Sources of Monopsony Power, The Social Costs of Monopsony Power, Bilateral Monopoly, Limiting Market Power: The Antitrust Laws. |
Lecture & Question Answer & Problem Solving |
| 12 |
Reading |
Monopolistic competition and oligopoly:
Monopolistic competition, the equilibrium in the short run and the long run, monopolistic competition and economic efficiency, oligopoly, equilibrium in an oligopolistic market, The Cournot Model, the linear demand curve, The Stackelberg Model, price competition, The Bertrand Model, the prisoners’ dilemma and oligopolistic pricing, price rigidity, The Dominant Firm Model, cartels, analysis of cartel pricing. |
Lecture & Question Answer & Problem Solving |
| 13 |
Reading |
General equilibrium and economic efficiency-I :
General Equilibrium Analysis, economic efficiency, efficiency in exchange, the advantages of trade, The Edgeworth Box Diagram, efficient allocations, the contract curve, consumer equilibrium in a competitive market. |
Lecture & Question Answer & Problem Solving |
| 14 |
Reading |
General equilibrium and economic efficiency-II:
The economic efficiency of competitive markets, equity and efficiency, The Utility Possibilities Frontier, equity and perfect competition, efficiency in production, input efficiency, The Production Possibilities Frontier, output efficiency, efficiency in output markets, the gains from free trade , comparative advantage, an expanded Production Possibilities Frontier, markets fail, incomplete information, externalities, public goods. |
Lecture & Question Answer & Problem Solving |
| 15 |
Reading |
Markets with asymmetric information:
Quality uncertainty and the market for lemons, implications of asymmetric information, a simple model of job market signaling, moral hazard, the principal–agent problem, asymmetric information in labor markets: efficiency Wage Theory. |
Lecture & Question Answer & Problem Solving |
| 16 |
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FINAL EXAM |
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| 17 |
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FINAL EXAM |
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