Microeconomic Theory - ECO00037I

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  • Department: Economics and Related Studies
  • Credit value: 20 credits
  • Credit level: I
  • Academic year of delivery: 2025-26

Module summary

An intermediate level of study of microeconomic theory with an application to public policy issues.

Related modules

Pre-requisite modules

Co-requisite modules

  • None

Prohibited combinations

  • None

Elective Pre-Requisites

These pre-requisites only apply to students taking this module as an elective.

Principles of Economics ECO00023C

Module will run

Occurrence Teaching period
A Semester 1 2025-26

Module aims

Subject content

  • Understand the purpose and scope of microeconomic analysis

  • Illustrate and explain key models of microeconomics

  • Apply basic microeconomic analysis to discuss economic and policy issues

Module learning outcomes

On completing the module a student will:

  • Be able to understand the basic concepts and tools of economic analysis

  • Have the proper basis for following more advanced economic modules

Module content

Content Outline

  1. Consumers

    1. Preferences

    2. Utility

    3. Budget Constraint

    4. Constrained Consumer Choice

    5. Behavioural Economics

  2. Demand Curves

    1. Deriving Demand Curves

    2. Demand Elasticities

    3. Effects of an increase in income

    4. Effects of a price increase

    5. Cost-of-living adjustment

    6. Revealed preference

  3. Consumer Welfare

    1. Uncompensated Welfare

    2. Compensated Consumer Welfare

    3. Effects of Government policy

    4. Deriving Labour supply curves

  4. Production

    1. Ownership & Management of the firm

    2. Production

    3. Returns to scale

    4. Production and technical change

    5. Measuring costs

    6. Cost functions

  5. Equilibrium

    1. Market Equilibrium with perfect competition

    2. Competition in the short-run

    3. Competition in the long-run

    4. Shocking the Equilibrium: Comparative Statics

    5. Effects of a Sales Tax

    6. Price Ceiling & Price Floor

  6. General equilibrium

    1. General equilibrium

    2. Trading between two people

    3. Competitive exchange

    4. Production and trading

    5. Efficiency and Equity

  7. Properties, Externalities, Rivalries and Exclusion

    1. Externalities

    2. Inefficiency of competition with externalities

    3. Regulating Externalities

    4. Market Structure

    5. Allocating Property Rights to Reduce Externalities

    6. Rivalries and Exclusion

  8. Monopoly and Monopsony

    1. Monopoly profit maximisation

    2. Market power and welfare

    3. Taxes and monopoly

    4. Causes of monopolies

    5. Competition law

    6. Internet monopolies

    7. Monopsony

  9. Game Theory

    1. Static games

    2. Repeated dynamic games

    3. Sequential games

  10. Oligopoly

    1. Market structures

    2. Cournot Oligopoly

    3. Stackelberg Oligopoly

    4. Bertrand Oligopoly

  11. Uncertainty & Asymmetric information

    1. Assessing Risk

    2. Attitudes towards risk

    3. Insurance

    4. Investing under uncertainty

    5. Adverse selection

  12. Contracts and Moral hazard

    1. Principal-Agent Problem

    2. Production efficiency

Indicative assessment

Task % of module mark
Closed/in-person Exam (Centrally scheduled) 100

Special assessment rules

None

Indicative reassessment

Task % of module mark
Closed/in-person Exam (Centrally scheduled) 100

Module feedback

Feedback will be provided in line with University policy

Indicative reading

  • Perloff, “Microeconomics with Calculus”, Pearson (available electronically online through the university)

  • Varian, “Intermediate Microeconomics”, Norton