Decision-making by consumers, producers, and governments lies at the heart of economic analyses. The first half of this course in microeconomic theory is devoted to the study of rational decision-making and the modelling of associated market behavior. We then study how individual economic decisions interact in markets with varying degrees of competition, paying substantial attention to the comparative welfare outcomes produced by different market forms. Additional topics include welfare economics and its applications, and market imperfections like oligopoly and externalities. There is substantial emphasis on the use of analytical and mathematical tools. These tools and the subject material underpin much of the current research in microeconomics.

After completing the course, students will be able to know further about price and output determination under various market scenarios.

Characteristics and output/price determination under pure competition, monopoly, monopolistic competition and oligopoly; profit maximization under different market structures in both short run and long run perspectives. Price discrimination, regulation of monopoly. Game theory. Resource Market structure, demand and supply pattern in resource market (wage rent, interest and profit determination). General equilibrium model. Welfare Economics, public goods and externalities. Microeconomics of Government.

Recommended Books

1. Parkin, M. (2010) Economics. 10th Edition, Addison Weslay Publishing Company.
2. Nicholson, W. & Snyder C. M. (2009). Intermediate Microeconomics and its application. 11th Edition. Mason: South-Western Cangage learning Publisher.

Suggested Books

1. Varian, H.R. (2009). Intermediate Microeconomic, 8thEdition. New York: W.W. Norton Company inc.
2. Pindyck, R., & Daniel, R. (2012). Microeconomics, 8th Edition, Prentice Hall publisher.
3. Leftwich, R. H. & Eckert, R. H. (1989). The Price System and Resource allocation, 10th Edition, Islamabad, Pakistan: National Book Foundation.

Sessional:                  12 ( Class Attendance:2, Presentation: 4, Assignments: 6)

Mid Term Test:           18

Final Term Test:         30