This course develops the economic theory of the firm and consumer choice. The former includes analyses of market structures, output and input pricing decisions, cost minimization, and profit maximization. The latter characterizes consumer’s optimal decisions given their incomes, preferences and the relative prices of various goods. The course develops tools for analyzing how these optimal choices change when relative prices and consumer incomes change. Also, the course presents several measures on consumer welfare. Other topics may include general equilibrium analysis, market failure, public economics, public choice, decision making under uncertainty, and game theory applications. The course relies on calculus when presenting and developing the various economic models.
- Prerequisites: ECO 101, ECO 102, MATH 122 or MATH 151
- Credits: 3