Microeconomics in business 2600-LFBRz1MB

1. Basic issues in economics (Etymology of the term economics. The concept of microeconomics, macroeconomics, mesoeconomics and megaeconomics. Resources and flows. Production possibility frontier. Production possibilities curve).
2. The market mechanism (Demand versus Quantity. Potential demand and effective demand. Law of demand. Inverted demand equation. Change in demand. Supply and Quantity Supplied. Low of supply. Inverted supply equation. Change in supply. Market equilibrium. Market shortage. Market surplus. Ceiling price. Minimum price. Market effects of changes in demand and supply. Long-term market equilibrium).
3. Elasticity of demand and supply (point and arc elasticity, price elasticity of demand, cross elasticity of demand, income elasticity of demand, price elasticity of supply).
4. Utility theory (consumer behaviour, rational behaviour, irrational behaviour, cardinal utility theory, ordinal utility theory, law of diminishing marginal utility, indifference curves, marginal rate of substitution, budget line, the right to equalize the marginal utility, consumer equilibrium).
5. Theory of consumer demand (changes in income, normal goods and inferior goods, income consumption curve, changes in income and changes in the optimum point, the Engel curve, Engel laws, changes in price, price consumption curve, changes in price and changes in the optimum point, the demand curve).
6. Producer theory (principle of rational management, one-factor production function, law of diminishing marginal productivity of an input, stages of production, two-factor production function, isoquant, marginal rate of technical substitution, declining MRTS, cost equation, isocost curve, optimum output, expansion path).
7. Theory of costs and profits (economic costs, hidden costs, production cost function, fixed costs, variable costs, total costs, average fixed costs, average variable costs, average total costs, marginal costs, long-run total costs, long-run average total costs, long-run marginal costs, economies and diseconomies of scale, book profit, economic profit, normal profit).
8. Perfect competition (model assumptions, break-even point, shut-down point, short-run supply curve, long-run equilibrium, allocative efficiency, production efficiency, long-run supply curve).
9. A complete monopoly (model assumptions, short-run equilibrium, long-run equilibrium, monopoly pricing, elasticity and marginal revenue, measuring monopoly power, natural monopoly, subadditive production costs, state regulation, antitrust regulations, price dispersion, first-degree price discrimination, second-degree price discrimination, third-degree price discrimination, two-part tariff, interm price discrimination).
10. Monopolistic competition (model assumption, short-run and long-run equilibrium, non-price competition, concentration ratio, Herfindahl-Hirschman Index, Lerner Index).

1. Basic issues in economics (Etymology of the term economics. The concept of microeconomics, macroeconomics, mesoeconomics and megaeconomics. Resources and flows. Production possibility frontier. Production possibilities curve).
2. The market mechanism (Demand versus Quantity. Potential demand and effective demand. Law of demand. Inverted demand equation. Change in demand. Supply and Quantity Supplied. Low of supply. Inverted supply equation. Change in supply. Market equilibrium. Market shortage. Market surplus. Ceiling price. Minimum price. Market effects of changes in demand and supply. Long-term market equilibrium).
3. Elasticity of demand and supply (point and arc elasticity, price elasticity of demand, cross elasticity of demand, income elasticity of demand, price elasticity of supply).
4. Utility theory (consumer behaviour, rational behaviour, irrational behaviour, cardinal utility theory, ordinal utility theory, law of diminishing marginal utility, indifference curves, marginal rate of substitution, budget line, the right to equalize the marginal utility, consumer equilibrium).
5. Theory of consumer demand (changes in income, normal goods and inferior goods, income consumption curve, changes in income and changes in the optimum point, the Engel curve, Engel laws, changes in price, price consumption curve, changes in price and changes in the optimum point, the demand curve).
6. Producer theory (principle of rational management, one-factor production function, law of diminishing marginal productivity of an input, stages of production, two-factor production function, isoquant, marginal rate of technical substitution, declining MRTS, cost equation, isocost curve, optimum output, expansion path).
7. Theory of costs and profits (economic costs, hidden costs, production cost function, fixed costs, variable costs, total costs, average fixed costs, average variable costs, average total costs, marginal costs, long-run total costs, long-run average total costs, long-run marginal costs, economies and diseconomies of scale, book profit, economic profit, normal profit).
8. Perfect competition (model assumptions, break-even point, shut-down point, short-run supply curve, long-run equilibrium, allocative efficiency, production efficiency, long-run supply curve).
9. A complete monopoly (model assumptions, short-run equilibrium, long-run equilibrium, monopoly pricing, elasticity and marginal revenue, measuring monopoly power, natural monopoly, subadditive production costs, state regulation, antitrust regulations, price dispersion, first-degree price discrimination, second-degree price discrimination, third-degree price discrimination, two-part tariff, interm price discrimination).
10. Monopolistic competition (model assumption, short-run and long-run equilibrium, non-price competition, concentration ratio, Herfindahl-Hirschman Index, Lerner Index).

Obligatory reading:
Zalega, T. (2016). Mikroekonomia. Warszawa: Wydawnictwo Naukowe Uniwersytetu Warszawskiego.
Begg, D., Fisher, S., Vernasca, G., Dornbusch, R. (2016). Mikroekonomia. Warszawa: PWE.
Supplementary reading
Krugman, P., Wells, R. (2013). Mikroekonomia. Warszawa: PWN.
Mankiw, M.G., Taylor, M.P. (2009). Mikroekonomia. Warszawa: PWE.