Microeconomics is the branch of economics that focuses on the decision-making behavior of individuals, households, and firms, as well as the functioning of markets. This course provides an in-depth exploration of key microeconomic principles, including how scarcity and choice drive economic activity, how supply and demand determine prices, and how consumers and firms make decisions to optimize outcomes under constraints.
The course begins with an introduction to basic economic concepts such as opportunity cost, scarcity, and trade-offs. It then delves into the mechanics of market interactions, exploring how equilibrium prices are established through the forces of supply and demand and the role of elasticity in measuring responsiveness to price changes. Students will also study consumer behavior, learning about utility maximization and the effects of income and substitution on demand patterns.
Further, the course examines firm behavior in various market structures, including perfect competition, monopoly, monopolistic competition, and oligopoly. Students will analyze how different competitive environments affect pricing, production, and overall market efficiency. Additionally, the course introduces factor markets, explaining how wages, interest rates, and rents are determined.
In the latter modules, the course addresses market failures such as public goods, externalities, and monopolistic practices, as well as the role of government intervention in correcting these failures. The impact of international trade on domestic markets and globalization’s influence on microeconomic decisions are also explored.
The course concludes with insights into behavioral economics, offering a look at how psychological factors influence economic decision-making, and provides students with real-world applications of microeconomic theory through case studies and problem sets.
Through a combination of theoretical frameworks and practical applications, this course equips students with the analytical tools to understand and engage with real-world economic challenges on a micro-level, from pricing strategies and consumer choices to government policies and market efficiency.
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