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ECO231Management Sciences3 Unitsintermediate

MICRO-ECONOMIC THEORY

This course, Micro-Economic Theory I, is designed for second-year economics students. It provides an in-depth understanding of microeconomic principles and the operation of market economies. The course covers consumer behavior, utility theory, and different market structures, including perfect competition, monopoly, monopolistic competition, and oligopoly. It also examines the theory of distribution, factor pricing, and employment under various market conditions. The course aims to equip students with analytical skills for solving business problems.

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208h

Study Time

13

Weeks

16h

Per Week

intermediate

Math Level

Course Keywords

MicroeconomicsConsumer BehaviorMarket StructuresFactor PricingUtility Theory

Course Overview

Everything you need to know about this course

Course Difficulty

Intermediate Level

Builds on foundational knowledge

65%

intermediate

📊

Math Level

Moderate Math

📖

Learning Type

Theoretical Focus

Course Topics

Key areas covered in this course

1

Consumer Behavior

2

Utility Theory

3

Indifference Curve Analysis

4

Market Structures

5

Perfect Competition

6

Monopoly

7

Monopolistic Competition

8

Oligopoly

9

Factor Pricing

10

Theory of Distribution

Total Topics10 topics

Requirements

Knowledge and skills recommended for success

ECO102: Principles of Economics

💡 Don't have all requirements? Don't worry! Many students successfully complete this course with basic preparation and dedication.

Assessment Methods

How your progress will be evaluated (3 methods)

Assignments

Comprehensive evaluation of course material understanding

Written Assessment

Tutor-Marked Assessments

Comprehensive evaluation of course material understanding

Written Assessment

Final Examination

Comprehensive evaluation of course material understanding

Computer Based Test

Career Opportunities

Explore the career paths this course opens up for you

Economist

Apply your skills in this growing field

Market Analyst

Apply your skills in this growing field

Financial Analyst

Apply your skills in this growing field

Business Consultant

Apply your skills in this growing field

Policy Analyst

Apply your skills in this growing field

Industry Applications

Real-world sectors where you can apply your knowledge

FinanceConsultingGovernmentMarket ResearchBanking

Study Schedule Beta

A structured 13-week journey through the course content

Week

1

Module 1: Theory of Consumer Behaviour

2h

Unit 1: Basic Concept of Consumer Behaviour

2 study hours

•Understand the basic assumptions of microeconomics and consumer rationality.
•Define consumer behavior and its importance in economic analysis.
•Explain the concepts of decisiveness, consistency, non-satiation, and convexity in consumer preferences.

Week

2

Module 1: Theory of Consumer Behaviour

2h

Unit 2: Utility Theory

2 study hours

•Define utility and explain the difference between cardinal and ordinal utility.
•Calculate total utility and marginal utility from consumption data.
•Understand the law of diminishing marginal utility and its implications for consumer choices.

Week

3

Module 1: Theory of Consumer Behaviour

2h

Unit 3: Utility Theory: Indifference Curve

2 study hours

•Define indifference curves and explain their properties.
•Understand the concept of the marginal rate of substitution (MRS).
•Analyze consumer preferences using indifference curves and budget constraints.

Week

4

Module 1: Theory of Consumer Behaviour

2h

Unit 4: Budget Constraint

2 study hours

•Define budget constraint and explain its role in consumer choice.
•Understand the concept of relative price and its impact on consumption decisions.
•Describe the concept of revealed preferences and consumer surplus.

Week

5

Module 2: Market Structures 1

2h

Unit 1: Overview of Market Structure

2 study hours

•Define market structure and enumerate different forms of market structure.
•Identify the characteristics of a perfectly competitive market.
•Calculate total, average, and marginal revenues in a perfectly competitive market.

Week

6

Module 2: Market Structures 1

2h

Unit 2: Profit Maximisation and Losses Minimisation under Perfect Competitive Market

2 study hours

•Determine profit maximization and loss minimization conditions under perfect competition.
•Explain the concept of break-even price and short-run supply curve.
•Understand long-run equilibrium and economic efficiency in a perfectly competitive market.

Week

7

Module 2: Market Structures 1

2h

Unit 3: Monopoly Markets

2 study hours

•Describe the monopoly market and its salient features.
•Enumerate sources of monopoly power and barriers to entry.
•Explain profit maximization and loss minimization under monopoly market.

Week

8

Module 3: Market Structures 2

2h

Unit 1: Price Discrimination in the Monopoly Market

2 study hours

•Explain price discrimination and its different degrees.
•Compare and contrast perfectly competitive market and monopoly market.
•Indicate how government can control excesses of monopolist.

Week

9

Module 3: Market Structures 2

2h

Unit 2: Monopolistic Competition

2 study hours

•Describe monopolistic market structure and its features.
•Determine profit maximization in monopolistically competitive market.
•Compare monopolistic competition with monopoly and perfectly competitive market.

Week

10

Module 3: Market Structures 2

2h

Unit 3: Oligopoly Market and Models

2 study hours

•Describe the concept of oligopoly market and its behaviors.
•Explain the different game theories/models under oligopoly market.
•Justify the need for oligopolists.

Week

11

Module 4: Theory of Distribution

2h

Unit 1: Concepts of Theory of Distribution

2 study hours

•Differentiate revenue factor from the cost of a factor.
•Distinguish between factor market and product market.
•Determine the various uses of marginal productivity.

Week

12

Module 4: Theory of Distribution

4h

Unit 2: Basic Concept of Factor Pricing: Productivity of the Factor

2 study hours

•Define productivity of factor and its uses.
•Differentiate between marginal revenue (MR) and marginal revenue productivity (MRP).
•Calculate total revenue, marginal revenue product, and marginal physical product.

Unit 3: Basic Concept of Factor Pricing: Cost of the Factor

2 study hours

•Explain the concept of cost of the factor and its divisions.
•Differentiate between marginal cost of factor and average cost of factor.
•Compare AFC and MFC under perfectly competitive market and imperfectly competitive market.

Week

13

Module 4: Theory of Distribution

4h

Unit 4: The Concept Marginal Productivity Theory of Distribution (Factor Pricing)

2 study hours

•Explain the concept of marginal productivity theory of distribution (or factor pricing).
•Enumerate the limitations of using marginal productivity theory in reality.
•Explain factors that affect demand for factors and supply for factors.

Unit 5: The Factor Market under Perfect Competition

2 study hours

•Describe how factor market works under perfect market and imperfect market.
•Explain factors price determination under perfect market and imperfect market.

This study schedule is in beta and may not be accurate. Please use it as a guide and consult the course outline for the most accurate information.

Course PDF Material

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Study Tips & Exam Preparation

Expert tips to help you succeed in this course

1

Review all key concepts and definitions from each unit.

2

Practice solving numerical problems related to utility, cost, and revenue.

3

Create diagrams illustrating market structures and equilibrium conditions.

4

Focus on understanding the assumptions and limitations of each theory.

5

Prepare detailed notes summarizing the main points of each module.

6

Work through past examination papers to familiarize yourself with the question formats.

7

Allocate sufficient time to revise challenging topics such as oligopoly models and factor pricing.

8

Create concept maps linking Units 3-5 market structure concepts.

9

Practice calculating consumer surplus from Units 1-4 weekly.

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