ADVANCED MICROECONOMIC THEORY

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Learning Outcomes

will able to define and explain the basic concepts and hypothesis in Microeconomic Theory and their relations
will able to define the basic concepts in Microeconomic Theory
will able to explain the fundamental hypothesis in Microeconomic Theory
will able to carry out microeconomic analysis based on fundamental hypothesis,
explain any topic with the help of graphs
interprets any given graph and drive conclusions
analyse consumer equilibrium
asses consumer preferences
defines indifference curves and explain their properties of budget line
defines budget constraint and explain the properties
obtain optimal choice of consumer under budget constraint
will able to drive demand of consumer for a good
will able to explain the impact of price and income change on consumer equilibrium
will able to obtain and interpret elasticities
calculate price, income and cross-price elasticity
will able to explain the factors affecting the sensitivity of demand to price changes
interprets the relation between prices change and elasticity
develops pricing strategies based on elasticities
classifies goods with respect to the values of income and cross price elasticities
will able to analyse producer equilibrium
defines production function and explain its properties
will able to explain decreasing returns
will able to define isoquants and explain their properties
obtains producer equilibrium under cost constraint
solves producer's profit maximisation problem
shows graphically profit maximizing firm's production level
will able to define costs of production and short and lung run cost functions
explains costs of production
will able to define short run costs and their relations
will able to define long run costs and their relations
defines constant, increasing and decreasing returns to scale
defines scale economies and its main assumptions
will able to define market, categorize markets and analyse perfectly competitive markets
defines market and lists market types
asses the properties of perfectly competitive market
solves the profit maximisation problem of the firm operating in perfectly competitive market
examines the short run supply decision of the firm by the analysis of short run cost functions
explains lung run equilibrium in perfectly competitive market