Course outline

Introduction to Economics

How economists think. Costs and Benefits. Opportunity Cost. Production Possibility Frontier. Marginal analysis. Trade-offs. Comparative advantage and Gains from Trade.

The basics of supply and demand

Individual and market demand function. Individual and market supply function. Market equilibrium. Comparative statics. Elasticities. Applications. Shortage and Surpluses.

Midterm Exam 1

Consumer Behavior and Demand Function

Budget constraints, indifference curves, Consumer Choice. Utility and marginal utility. Individual and market demand. Applications.

Production, Cost of Production and Profit Maximization

Technology, Inputs and Returns to Scale. Short Run and Long Run Cost. Cost Curves. Marginal Revenue, Marginal Costs and Profit Maximization. Perfectly Competitive markets and Supply Curves.

Midterm Exam 2

Competitive Markets and Welfare Analysis

Consumer and Producer Surplus. Efficiency of Competitive Markets. Minimum Prices and support prices, taxes and subsidies.

Market Power

Monopoly and Monopoly Pricing. Oligopoly and Collusion.

Final Exam