The course introduces to students the concepts and techniques of microeconomic analysis, with an objective of delivering students a rigorous knowledge on modern microeconomic theories, and to enable them to apply modern microeconomic theories to analyze individual’s behaviour. The course covers topics such as budget constraint, preferences, utility, choice, demand and consumer surplus, market demand and equilibrium, technology and profit maximization, cost minimization and cost curves, firm supply and industry supply, monopoly and oligopoly.

CILO-1: Appraise consumer theory. Analyze individual optimization and how individual demand functions can be aggregated to build market demand function. CILO-2: Demonstrate knowledge of producer theory and analyze the structure of production and how it impacts profit maximization of a firm. CILO-3: Identify market structure (including perfect competition, monopoly, monopolistic competition, and oligopoly). Explain how equilibrium prices and quantities are determined and whether market equilibrium is efficient. CILO-4: Explain the meaning of general equilibrium analysis. CILO-5: Use game theory to analyze strategic interactions between agents and use it as a tool in modern economics.