Microeconomic Theory 1

Welcome to the course "Microeconomic Theory I". The course aims to familiarize students with the microeconomic analysis of consumption and production. The course examines the analytical tools and theoretical approaches used in economics to investigate how consumers and producers make decisions and interact through the market system. The course aims to acquaint students with the use of economic models for understanding the implications of interacting agents in the context of market economies.   Upon completion of the course, students will be able to:

• acquire an analytical understanding of the theory of the consumer
• become familiar with mathematical and diagrammatic representation of consumer preferences
• understand and become familiar with using the concepts of utility, income constraints, income and substitution effects
• understand the underpinnings of individual and market supply and demand functions
• understand the concepts of consumer and producer surplus and how they relate to welfare and identifying efficient market outcomes
• be able to analyse the behavior of firms under alternative market structures
• understand the role of costs in firm decision making in the short and long term
• use microeconomic methods to evaluate optimal distribution of goods and factors of production