ECO3101 Intermediate Microeconomics II

Microeconomic theory as a discipline begins by considering the behaviour of individual agents and builds from this foundation to a theory of aggregate economic outcomes. Therefore, as advanced course, Microeconomic II is designed to take a mathematically rigorous approach to analysis of individual decision making under both certain and uncertain conditions. Overall, on one hand, the investigation centers on the interactions between consumers and producers in well-defined market environments, and on the other, application of mathematical optimization of calculus is adequately utilized for clarity and precision in analysis. 

Course Objectives      
As an advanced undergraduate course and a sequel to Microeconomics I, Microeconomics II intends to achieve the following:

• Providing a rigorous derivation of the axiom of ration choice and consumer preferences  
• Developing approach to derivation of various demand functions from the different preference formats
• Investigating the effect of uncertainty and information on demand 
• Deriving the mathematical layouts of costs, production and supply functions 
• Analyzing the strategic interaction among producers and suppliers based on game theoretic approach 
• Discussing the general equilibrium approach to investigate price and output outcome 
• Analyzing the nature and causes of market failures 

Course Learning Outcomes
At the end of the course students should be able to clearly; 

• Define and derive the various axioms of ratio choice preferences 
• Derive the demand function based on the different preferences structures
• Derive demand curves of different preference expression under certainty and uncertainty 
• Derive Nash, dominant strategy and mixed strategy equilibrium
• Explain the application of game theoretic concepts in the investigation of price and output outcomes