MICROECONOMICS

This course will be concerned with fundamental and applied aspects of microeconomic theory. The aim is to further develop and build upon the microeconomics considered in the first year. This will involve introducing new microeconomic concepts and returning to concepts with which students should be familiar from the first year, but examining them in greater depth. The course will examine some modern approaches to microeconomic analysis by addressing aspects of game theory. In particular, major concern will lie with the application of game theoretic models to issues in modern industrial organisation. Finally, the course will return to welfare economics and develop a general equilibrium model of the economy and employ it to analyse the issue of Pareto efficiency. Course Objectives The aim of this course is to develop the basic tools of microeconomic analysis learned in first year. Additionally, at the end of this course students should be able to:(i)         Demonstrate how microeconomics can be used to explain and predict household and firm behavior.(ii)        Show how households respond optimally to changes in prices and income and how prices and quantities are determined under different types of market structure.(iii)       Demonstrate the effect of government policy on household and firm decision making.(iv)       Develop problem-solving skills, so reinforcing understanding of microeconomic concepts.(v)        Build upon the ECO 1101 Introductory Microeconomics studied in year 1. The course contributes to core knowledge and skills employed during year 3.(vi)       Develop analytical skills by employing standard diagrammatic analysis and reference to the underlying mathematical techniques