The objective of this course is to provide students with the analytical tools to understand Microeconomics: the study of economic activity including individuals and firms from the point of view of individual decision-making units. The course will begin with the basics of the analysis of production decisions by firms. We start with the standard cost functions and the we will move on to multi-product firms and technological production sets. The properties of profit functions will be analyzed. The model of production will then be integrated with the exchange models of the first course in the sequence. The existence of equilibrium in economies with production will then be discussed, together with their welfare and distributional properties. We will then conclude with the discussion of models of decision-making under uncertainty.
This is the second of a sequence of two courses in Microeconomics. They are designed as an integrated sequence. This second course builds on the first adding production to the framework. Throughout it, the basic paradigm will be that of competitive environments modeled assuming price-taking behavior.This course is part of the "Market Analysis" Program. If you wish to follow this course, you need to enrol via the Program at this link.
