Microeconomic Analysis

Introduction

The main purpose of this course is to teach students the basic principles of market mechanisms and price formations in markets. The students will acquire knowledge about the economic principles behind exchange and transactions, price formations under supply and demand, implications of competition and market forces, price formations under different market mechanisms, in addition to the benefit function in the market.

Course content

Part 1 Introduction

• Introduction to price management
• Trade and Comparative Advantage

Part 2 Microeconomic principles for price decisions

• Thinking Like an Economist
• Supply and Demand: An Introduction
• Comparative Advantage: The Basis for Exchange
• Price in international markets

Part 3 Managers price decisions

• Elasticity
• Demand: The Benefit Side of the Market
• Perfectly Competitive Supply: The Cost Side of the Market
• Efficiency and Exchange
• The Quest for Profit and the Invisible Hand

Part 4 Market Imperfections

• Monopoly and Other Forms of Imperfect Competition
• Thinking Strategically
• The Economics of Information