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Micro Economics for Business syllabus

ECO 2036 units · 43 topicsAcademic year 2083/84
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Micro Economics 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
  3. Market equilibrium
    1. Market equilibrium
  4. Effect of changes in demand and supply on market equilibrium
    1. Effect of changes in demand and supply on market equilibrium
  5. 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
  6. Market efficiency
    1. Market efficiency: concepts and measurement (by consumer's surplus and producer's surplus)
  7. Price elasticity of demand
    1. Price elasticity of demand: concept and calculation
  8. Price elasticity of demand in demand curve
    1. Price elasticity of demand in demand curve
  9. Relationship between revenue and price elasticity
    1. Relationship between revenue and price elasticity
  10. Uses of price elasticity of demand in business decision making
    1. Uses of price elasticity of demand in business decision making
  11. 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. Analysis 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
  4. Price line
    1. Price line
  5. Consumer's equilibrium
    1. Consumer's equilibrium
  6. Price effect and derivation of demand curve for normal goods
    1. Price effect and derivation of demand curve for normal goods

4. Production, Cost and Profit analysis (12 LHs)

  1. Production function
    1. Production function: concept and types
  2. Concept of Cobb-Douglas production function
    1. concept of Cobb-Douglas production function
  3. Optimal employment of one and two variable inputs
    1. Optimal employment of one and two variable inputs
  4. Cost function
    1. Cost function: concepts, implicit cost and explicit cost, accounting cost and economic cost, opportunity cost
  5. Short-run costs and long run costs, fixed and variable costs
    1. Short-run costs and long run costs, fixed and variable costs
  6. Law of variable proportion and derivation of short cost curves
    1. Law of variable proportion and derivation of short cost curves
  7. Isoquants
    1. Isoquants, Iso-cost line, laws of returns to scale and derivation of long run average cost curve
  8. Economies and diseconomies of scale
    1. Economies and diseconomies of scale
  9. Relation between average cost and marginal cost
    1. Relation between average cost and marginal cost
  10. Profit
    1. Profit: business profit and economic profit

5. Firms in Market and Pricing Practices (12 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, selling cost and effect on equilibrium
  6. Concept and types of cartel
    1. Concept and types of cartel
  7. Pricing under joint profit maximization cartel
    1. Pricing under joint profit maximization cartel
  8. Game theory
    1. Game theory: concept, dominant strategy, Nash equilibrium and prisoner’s dilemma
  9. Pricing practices
    1. Pricing practices: price discrimination, cost plus pricing, predatory pricing, skimming pricing and penetration pricing

6. Markets for Resources (3 LHs)

  1. Demand for labor, Supply of labor
    1. Demand for labor, Supply of labor
  2. Equilibrium in the labor market
    1. Equilibrium in the labor market
  3. Wage differentials
    1. Wage differentials
  4. Other factors of production
    1. Other factors of production: land and capital