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ECON 311 — Microeconomic Theory I (Pre-req: EC0N 211 and ECON 213)

Economics · University of Ghana

Economic model-building. Positive and normative economics. Micro and Macro. Comparative Static and dynamic models. Consumer Behaviour and Demand Theory, Cardinal utility approach to demand theory: law of diminishing marginal utility, consumer equilibrium, Marshal's derivation of law of demand. Ordinal utility approach: indifference curve analysis; principle of diminishing marginal rate of substitution; consumer equilibrium, price consumption curve; income consumption curve; income effect; substitution effect; price effect; inferior good, Giffen good. Revealed preference approach: brief treatment. Demand function; individual and market demand schedules and curves; ceteris paribus assumptions; elasticity of demand; price elasticity of demand; income elasticity of demand; price and marginal revenue; cross-elasticities. Theory of Production: Production function: Total, average, and marginal product. 3-stage analysis. Isoquants. Marginal rate of technical substitution. Isocost curves. Relationships between costs and inputs. Expansion path. Social costs and private costs. Short-run cost theory: fixed, variable, total, average and marginal cost. Long-run costs. Cost elasticity. Economies and diseconomies of scale. Theory of the Firm: Perfect Competition: Basic concepts, definitions, assumptions: the firm, market, product homogeneity, perfect knowledge, profit maximization, free entry. Short-run equilibrium of firm and industry. Long-run equilibrium of the firm. Constant and increasing costs industries.

Credits
3
Level
Level 300
Semester
Semester One

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Course details from University of Ghana Volume 2 Handbook for the Bachelor's Degree: Course Descriptions for Programmes in the Humanities (2017).