EC109: Microeconomics 1

Elizabeth Jones
Module Leader

30 CATS - Department of Economics

Introduction

This module provides students with a thorough understanding in the principles of microeconomics. You will be exposed to a range of models and theories and consider how we can apply them to a range of scenarios and how we can build and use models to explain behaviour. You will gain an understanding of consumer behaviour, production theory and how markets work, including strategic behaviour of firms and the various models under which firms might behave. You will gain skills and techniques to analyse problems from a mathematical, graphical and intuitive perspective applying your knowledge to real world scenarios.

Principal Aims

To provide students with a thorough grounding in the principles of microeconomics and exposure to a range of applications of the theories. Students should develop an understanding of consumer and producer theory and how they can be used to solve problems. Students will understand how to use and construct models. The module aims to provide students with an understanding of how markets work, including strategic behaviour of firms and the various models under which firms might behave. The module aims to provide students with the skills and techniques to analyse problems from a mathematical, graphical and intuitive perspective and to apply their knowledge to real world scenarios.

Principal Learning Outcomes

Demonstrate a solid grasp of the theoretical material in microeconomics, including consumer and producer theory, strategic thinking, market analysis and partial equilibrium.

Demonstrate an ability to apply their knowledge to important areas of application, including micro policy analysis.

Explain a variety of concepts using different approaches, including those involving mathematical, graphical and intuitive analysis.

Understand the way in which economic models are used to analyse problems and the limitations of them.

Construct models of both consumer and producer behaviour and understand their implications and limitations, understanding the concept of abstration..

Demonstrate capacity of analytical and critical thinking, strategic thinking, reasoning and application.

Syllabus

The module will typically cover SOME OF the following topics:

Supply and Demand. Supply; demand; market equilibrium; equilibrium shocks; government intervention; supply and demand elasticities. Consumer theory. Preferences; utility; budget constraints; individual demand; substitution effects; income effects; revealed preferences, applications, behavioural economics and critiques of rational choice framework; Production. Technology; isoquants; marginal rate of technical substitution; marginal products; cost curves; long and short run; returns to scale; profit maximisation; cost minimisation; cost curves; supply curves. Competition. Profit maximisation; short run; long run; market equilibrium; consumer welfare; producer welfare; applications. Imperfect Competition; Models of Oligopoly: Cournot Model; Stackelberg Model; Comparison of Collusive, Cournot, Stackelberg, and Competitive Equilibria; Bertrand Model; Game Theory. An introduction to terminology and Nash equilibria; an introduction to economic models.

果冻传媒

Department of Economics