This subject builds on the microeconomic principles learnt in the Principles of Economics subjects and provides an analysis of the way in which the market system functions as a mechanism for coordinating the independent choices of individual economic agents. This subject provides a practical application of microeconomic theory to enable business decision-making in the context of dynamic market conditions. More specifically, it will examine the theory of consumer choice, isoquant theory of production, allocative efficiency and competition, models of monopolistic competition and oligopoly, input pricing, pricing strategy and microeconomic policies to address problems of market failure. Game Theory and its application to managerial decision-making is also introduced. Upon completion, students should be able to identify and evaluate consumer and business alternatives in order to achieve economic objectives efficiently.
|Faculty||Bond Business School|
1. Analyse decision-making by individual consumers and producers by applying relevant theories to explain different market structures. 2. Explain how firms maximise profit and conduct strategic interactions with other firms in an oligopoly environment. 3. Analyse price determination in product and input markets under various conditions to explain how firms use market power to extract consumer surplus and how firms use various pricing strategies to achieve these goals in the real world. 4. Analyse individual consumer behaviour using the indifference curve. 5. Critically evaluate policies designed to affect individual behaviour and market outcomes.
Assumed knowledge is the minimum level of knowledge of a subject area that students are assumed to have acquired through previous study. It is the responsibility of students to ensure they meet the assumed knowledge expectations of the subject. Students who do not possess this prior knowledge are strongly recommended against enrolling and do so at their own risk. No concessions will be made for students’ lack of prior knowledge.
Assumed Prior Learning (or equivalent):
|Withdraw – Financial?||09/10/2021|
|Withdraw – Academic?||30/10/2021|