Micro Economics Theory II
- Social Sciences
- 200 level
- 2 credit units
- 209 pages
- 17 units
This course provides an in-depth understanding of microeconomic theory, focusing on the behavior of buyers and sellers in isolated markets. It explores how households and firms interact to meet their needs, covering topics such as demand theory, supply theory, production, cost, general equilibrium, and welfare economics. The course aims to equip students with modern tools for analyzing practical economic complexities, with particular reference to the Nigerian context.
About this course
- Difficulty
- Intermediate
- Study hours
- 208 hours
- Maths
- Intermediate
- Content
- Theoretical, problem solving
- Practical work
- No
- Assignments
- Tutor marked assessments
- Final examination
What you'll read
The real module and unit structure of ECO232, taken from the course material NOUN publishes.
One paragraph, so you can see how it reads
ECO232 · UNIT 1: INTRODUCTION TO GENERAL EQUILIBRIUM CONCEPT
A market is the network of communications between individuals and firms for the purpose of buying and selling goods and services. Markets provide the framework for the analysis of the forces of demand and supply.
What you should be able to do
- Differentiate between changes in quantity demanded and change in demand
- Explain the relationship among total revenue, marginal revenue, and price elasticity
- Explain how firms transform resources into products
- Explain cost concepts and calculate minimum cost for optimal production
- Explain the essence of welfare economics for policy formulation
What it prepares you for
- Economist
- Market Analyst
- Policy Advisor
- Financial Analyst
- Business Consultant
- Government
- Banking
- Consulting
- Research
- Finance
Where it gets hard
The units students slow down on, and what makes each one heavy.
- MODULE 3:THEORY OF COST
Unit 3: Theory Cost III
Numerical examples of short-run cost require a strong understanding of mathematical relationships and calculations.
- MODULE IV:GENERAL EQUILIBRIUM THEORY AND WELFARE ECONOMICS
Unit 1: Introduction to General Equilibrium Concept
The Edgeworth Box Diagram requires strong visualization and abstract reasoning skills.
A suggested way through it
13 weeks, about 28 hours in total. Yours will differ.
- Week 1MODULE 1:INTRODUCTION AND THEORY OF DEMAND AND SUPPLY
Unit 1: Theory of Demand · 2 hours
Define market. Explain factors affecting demand. Differentiate between changes in quantity demanded and changes in demand.
- Week 2MODULE 1:INTRODUCTION AND THEORY OF DEMAND AND SUPPLY
Unit 2: Theory of Supply · 2 hours
Describe supply and its relationship with price. Explain determinants of supply. Calculate quantity supplied at a given price.
- Week 3MODULE 1:INTRODUCTION AND THEORY OF DEMAND AND SUPPLY
Unit 3: The Market Mechanism · 2 hours
Describe how demand and supply determine market equilibrium. Calculate equilibrium price and quantity. Explain the effect of tax on price and quantity.
- Week 4MODULE 1:INTRODUCTION AND THEORY OF DEMAND AND SUPPLY
Unit 4: Elasticity of Demand and Supply · 2 hours
State the importance of elasticity of demand. Calculate price elasticity of demand. Explain the relationship among Total Revenue, Marginal Revenue and Price Elasticity.
- Week 5MODULE 2:THEORY OF PRODUCTION
Unit 1: Theory of Production I · 2 hours
Explain what is production. Describe the concept of production function. Calculate and draw the total product, average product and marginal product.
Unit 2: Theory of Production II · 2 hours
State the differences between short run and long run. List the characteristics of isoquant. Describe the relationship between total product curve and isoquant.
- Week 6MODULE 2:THEORY OF PRODUCTION
Unit 3: Theory of Production III · 2 hours
State the economic relationship that exit between marginal product and isoquant. Describe the concept of marginal rate of technical substitution using isoquant approach. Explain the implication of input prices and firm's budget.
- Week 7MODULE 2:THEORY OF PRODUCTION
Unit 4: Production Theory IV · 2 hours
Explain with numerical values and graphical details the least cost combinations. Explain and illustrate the effect of an input price change. Describe expansion path and its conditions.
- Week 8MODULE 3:THEORY OF COST
Unit 1: Theory of Cost: Introduction · 2 hours
Differentiate between implicit and explicit cost. Differentiate between private and social cost. Describe fixed cost, variable cost, and sunk cost.
- Week 9MODULE 3:THEORY OF COST
Unit 2: Theory Cost II · 2 hours
Describe the conditions attached to short-run period of a firm. Establish the relationship among cost concepts given labour and capital as inputs. Calculate total cost, average total cost, and marginal cost and represent each of them on a graph.
- Week 10MODULE 3:THEORY OF COST
Unit 3: Theory Cost III · 2 hours
Explain how the long-run total cost, and average cost are derived. Describe the factors that lead to internal economies scale and diseconomies scale. Describe increasing return to scale, constant increasing and decreasing return scale with the use production function.
- Week 11MODULE 3:THEORY OF COST
Unit4: Theory Cost IV · 2 hours
Explain how the long-run total cost, and average cost are derived. Describe the factors that lead to internal economies scale and diseconomies scale. Describe increasing return to scale, constant increasing and decreasing return scale with the use production function.
- Week 12MODULE IV:GENERAL EQUILIBRIUM THEORY AND WELFARE ECONOMICS
Unit 1: Introduction to General Equilibrium Concept · 2 hours
Differentiate between general equilibrium and partial equilibrium. Describe how Pareto Optimum is attained in production. Explain the concept of contract curve.
- Week 13MODULE IV:GENERAL EQUILIBRIUM THEORY AND WELFARE ECONOMICS
Unit 2: General Equilibrium in Production and Exchange · 2 hours
Explain general equilibrium in exchange using indifference curve. Describe the relationship between marginal rate technical substitution and marginal rate of transformation.
Preparing for the exam
- Create concept maps linking Modules 1-2 demand, supply, and production concepts
- Practice elasticity calculations from Unit 4 weekly
- Review cost minimization problems from Module 3
- Focus on Edgeworth box diagrams and Pareto optimality from Module 4
- Solve all TMA questions as practice for final exam
Questions students ask about this course
What is ECO232 about?
This course provides an in-depth understanding of microeconomic theory, focusing on the behavior of buyers and sellers in isolated markets. It explores how households and firms interact to meet their needs, covering topics such as demand theory, supply theory, production, cost, general equilibrium, and welfare economics. The course aims to equip students with modern tools for analyzing practical economic complexities, with particular reference to the Nigerian context.
How many units does ECO232 have?
ECO232, Micro Economics Theory II, has 17 units across 4 modules, over 209 pages of course material. You can read it one unit at a time.
How many credit units is ECO232?
ECO232 carries 2 credit units, at 200 level in Social Sciences.
Is ECO232 hard?
ECO232 is rated intermediate level, with intermediate mathematical content. It is mostly theoretical and problem solving work.
How long does ECO232 take to study?
About 208 hours of study, spread across its 17 units.
How is ECO232 assessed?
ECO232 is assessed by assignments, tutor marked assessments and final examination.
What can I do with ECO232?
Economist, Market Analyst, Policy Advisor, Financial Analyst and Business Consultant.