Microeconomics

In this unit students will be introduced to the major principles and concepts of microeconomics - the study of the economic behaviour of individual units of an economy, such as a person, household, firm, or industry. Students will explore the decisions made by firms and how their behaviour can be affected by the structure and characteristics of the industry in which they operate.



Microeconomic models such as demand and supply, prefect competition, monopoly, the operation of the market mechanism and the causes of market failure are analysed. Government responses to market failure will also be investigated.

Learning Outcomes

On successful completion of this unit, students will be able to:

1. Describe how prices are determined in a competitive market;
2. Analyse firms' production decisions in the short-run and the long-run, based on costs and profits;
3. Describe concentrated markets and their effects on the economy;
4. Outline why market failure occurs and the consequences of market failure; and
5. Examine the case for and against Government intervention in market failure.