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ECON 312 — Microeconomic Theory II

Economics · University of Ghana

Monopoly: Definition and assumption of model. Demand curve under monopoly. Short-run equilibrium. Long-run equilibrium. Price discrimination. Monopolistic Competition. Meaning: product differentia-tion, many sellers. Pricing decision under monopolistic competition; shortrun and long-run equilibrium. excess Capacity. Oligopoly: Concepts, Duopoly models. Kinked demand curve. Theory of games (brief introduction). Brief discussion of behavioural theories of the firm. Theory of Distribution. Marginal productivity theory in perfectly competitive markets; demand for a factor of production, supply of a variable factor; product exhaustion; distribution and relative factor share, elasticity of substitution; technological progress. Modifications of the theory - introduction of imperfections in product and factor markets; monopoly and monopsony; trade unions. Theory of rent: Ricardian treatment. Modern treatment - derived demand, transfer costs, opportunity costs quasi-rent. Capital and interest: as an application of marginal productivity theory. Determination of rate of interest by supply and demand. Welfare Economics: Pareto optimality; optimum conditions of production and exchange. The role of welfare economics in modern economic analysis.

Credits
3
Level
Level 300
Semester
Semester Two
Prerequisites
ECON 311

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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).