Microeconomics

The course begins with a review of basic economic principles which were covered in ECON 1200 courses including supply and demand and the operation of markets. Elasticity considers how consumers and firms respond to price changes while marginal utility is used to explain how consumers maximize satisfaction from purchases. Government actions in markets is examined. The course then shifts to the microeconomic decisions of businesses by analyzing cost and revenue models with particular attention paid to profit maximization. Production cost models for each type of competitive structure are studied including perfect competition, oligopoly, and monopoly. The circular flow model's input markets are then studied with an emphasis on labour markets and wage determination.