Principles of Microeconomics Course Code: ECON-112 Cr Urs 3 Course ‘oduction Microzgonomics studies the behavior of specific economic units that make up the economic agar Microeconomics is the subject matter of this course explaining the behavior of specific economic units, The main focus will be on theories of consumption, production, istribu jon and role of the goverment. The course will rely heavily on graphical analysis and simple numerical calculations Course Objectives: To introuce students with the basic tools of microeconomics, Learning Outcomes: Stuslent: will be able to understand demand, supply cost st household behavior, consumer choice, the ture of the firms, market structures, market failures and externalities, economic regulations and Good governance. Course Contents L.Introduetion to Feonomies: Choice in a World of Scarcity: The No-Free- Lunch Principle . The Cost -Denefit + Reservation Prices , Economic Surplus , Opportunity Cost , The Role of Economic To What Extent should an Activity be Perused , Miero Economic Versus Macro = Economic Naturalism , Positive Versus Normative Economics . Some common Models Pitfalls for Decision Makers , Conclusion. 2. Consumer Behavior Cardine! Approach Utility Analysis, Marginal Usliy, Law of Diminishing Marginal Util kaw of Equi-Marginal Usity, Consumer Egulioriom Ordinal Approach of Consumes Bevavicn, Inaifference Curves, Features of Indiference Curves, Budget Line, Consumer Equifescon Comparison between two approaches Conclusion. 3.Demind & Supply: Deman Funston. Law of Demand, Shift in Demand, Change in Demand Factors Af Demanl. Supply Fonction, Equilibum. 4. Elasticity of Demand & Supply: Price Elasticity of Demand & Supply, Point Elasticity of Demand & Supply Are Elastic demand &© Supply, Income Elaseity of Demand & Supp Supply, Conelision 5. Efficiency and Exchange: Market Equilibrium and Efficieey, Economic Surplus, the Cost of Preventing. Price Adjustnens, Taxes and Eficieny, Conelison 6. The i heory of production & Theory of Cost The Prolvetion Function, Total, average and marginal product, Laws of Retuns to Seale, Short tun Thiéry of Cost, Seven family cost curves, Relationship between Production and Cost Curves F-Long: can Theory of Cost: Grophici! Representation of Long Run Cost Economies, Diseconomies and Constant Retums to Seale ing ‘of Supply, Changes in Supply Price Equilibrium, Market of Cross Elasticity of demand & \8. Market Structure: Perfect Competition vs. Pure Competition, Different Possibilities of SR ‘Maximization in the Short-tun and long-run 9. Monopoly Short run and Long run Equilibrium under Monopoly. Conclusion (Comparison of both) Imperfect Competition: Monopolistic Competition, Price and output determination in ‘monopolistic competition, Comparison perfect competition with monopolistic competition Oligopoly: Definition, Strategic behavior and game Theory, Price Rigidity and the kinked demand eurve, Conclusion (Comparison of both) Labor Markets ‘The Market Demand for Labor, Supply of labor, Shifts in the market demand for and supply of labor, Inefficiency wages, monopsony Recommended Readings/Books: Mankiw. G, Principles of Economies, Southwest Publishers, Latest Edition Mille R. L, Economies Today, Addison Wesley, Latest Editio Samuelson Nordons ~Fconomies, MeGrass-Hill, In, Latest Edition MeConnell and Bruee-Prineiples of Economics, McGras-Hill, Latest Edition Koutsoyiannis, A Modern Microeconomics, New York, The MacMillan Press Ld, Latest Edition n Equilit-ium, Profit,