Learning outcome

After successfully completing the course, the candidate will have achieved the following learning outcomes:

The candidate:

- Understands the theory of rational choice in relation to businesses and consumers and is able to give an account of how this theory relates to supply and demand in a market

- Is familiar with and is able to calculate various types of costs – including total, marginal and average cost – and is able to represent these graphically

- Is able to describe pricing and equilibrium in markets with perfect competition, and is familiar with the conditions for perfect competition

- Is able to calculate which market price is the lowest price that will enable an enterprise to cover its costs

- Is able to characterise what solutions are to be found in markets with other forms of competition than perfect competition, including monopoly and monopolistic competition

- Is able to make a welfare comparison between perfect competition and other market forms, including interpreting and estimating the loss of efficiency associated with monopoly

- Has knowledge of how various forms of policy instruments – taxes/duties/ subsidies/minimum prices/price caps – affect market solutions (prices, quantities and efficiency)

Course Description

Key topics:

- Production theory

- Consumer theory

- Market theory

- Efficient use of resources and market failure

- Effects of taxes / subsidies

Teaching and Learning Methods

3-4 hours of lectures per week during the spring semester.

Assessment Methods

Written examination, 4 hours.

Minor adjustments may occur during the academic year, subject to the decision of the Dean