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Microeconomics for Business syllabus

ECO 2036 units · 38 topicsAcademic year 2083/84
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Microeconomics for Business

6 units

1. Fundamentals of Microeconomics (5 LHs)

  1. Microeconomics
    1. Microeconomics: concept and scope
  2. Microeconomics in business decisions
    1. Microeconomics in business decisions: nature and uses
  3. Basic principles of economics
    1. Basic principles of economics: how people make decisions, how people interact and how the economy as a whole works.

2. Analysis of Demand, Supply and Market Efficiency (12 LHs)

  1. Demand function
    1. Demand function: concept and types, movement and shifts in demand curve
  2. Supply function
    1. Supply function: concept and types, movement and shifts in supply curve
    2. Market equilibrium
  3. Effect of changes in demand and supply on market equilibrium
    1. Effect of changes in demand and supply on market equilibrium
  4. Effect of government policy (Tax, subsidy and price control) on market equilibrium
    1. Effect of government policy (Tax, subsidy and price control) on market equilibrium
  5. Market efficiency
    1. Market efficiency: concepts and measurement (by consumer's surplus and producer's surplus)
  6. Price elasticity of demand
    1. Price elasticity of demand: concept and calculation
  7. Price elasticity of demand in demand curve
    1. Price elasticity of demand in demand curve
  8. Relationship between revenue and price elasticity
    1. Relationship between revenue and price elasticity
  9. Uses of price elasticity of demand in business decision making
    1. Uses of price elasticity of demand in business decision making
  10. Concept of income elasticity of demand
    1. Concept of income elasticity of demand, cross elasticity of demand, advertisement elasticity of demand and elasticity of supply.

3. Theory of Consumer’s Behavior (4 LHs)

  1. Cardinal approach
    1. Cardinal approach: assumptions, consumer's equilibrium and derivation of demand curve
  2. Ordinal approach
    1. Ordinal approach: concept, assumptions and properties of indifference curve
  3. Marginal rate of substitution
    1. Marginal rate of substitution
    2. Price line
  4. Consumer's equilibrium
    1. Consumer's equilibrium
  5. Price effect and derivation of demand curve for normal goods
    1. Price effect and derivation of demand curve for normal goods

4. Production and Cost Analysis (11 LHs)

  1. Production function
    1. Production function: concept and types
  2. Optimal employment of one variable inputs
    1. Optimal employment of one variable inputs
  3. Isoquants
    1. Isoquants: assumptions, MRTS, properties and isocost line, optimal employment of two variable inputs
  4. Laws of returns to scale
    1. Laws of returns to scale
  5. Cobb-Douglas production function
    1. Cobb-Douglas production function
  6. Cost function
    1. Cost function: concepts, implicit cost and explicit cost, accounting cost and economic cost, opportunity cost
  7. Behavior of short-run costs and cost curves
    1. Behavior of short-run costs and cost curves
  8. Derivation of long-run average and marginal cost curves
    1. Derivation of long-run average and marginal cost curves
  9. Economies and diseconomies of scale
    1. Economies and diseconomies of scale
  10. Relation between average cost and marginal cost
    1. Relation between average cost and marginal cost

5. Pricing Theory and Practices (10 LHs)

  1. Market structure
    1. Market structure: concept and characteristics
  2. Profit maximization goal of firm
    1. Profit maximization goal of firm
  3. Price and output determination under perfect competition
    1. Price and output determination under perfect competition: short-run and long-run equilibrium, Derivation of short run supply curve of a firm and industry
  4. Price and output determination under monopoly
    1. Price and output determination under monopoly: short-run and long-run equilibrium
  5. Price and output determination under monopolistic competition
    1. Price and output determination under monopolistic competition: short-run and long-run equilibrium
  6. Pricing practices
    1. Pricing practices: price discrimination, cost plus pricing, incremental cost pricing and two-part tariffs

6. Markets for Resources (6 LHs)

  1. Wage determination
    1. Wage determination: competitive labor market, Three union models, The minimum-wage controversy, Wage differentials and Pay for performance
  2. Interest rate differentials
    1. Interest rate differentials
  3. Economic rent and its determination
    1. Economic rent and its determination
  4. Profit
    1. Profit: business profit and economic profit