Introduction
The goal of this course is to develop a sound understanding of microeconomic analysis and reasoning, while exploring the relationship between economic analysis and human behavior. Much of the course will focus on key theoretical models which are used to investigate a variety of specialized topics. We will model how individuals make optimal decisions when facing constraints as well as how firms make their decisions and interact with one another. We will pay close attention to the assumptions behind economic models and to the techniques used to analyze them. With this foundation, you should be more able to readily apply economic reasoning and theory not only to upper level economics courses, but also to real world issues.
Upon completing this course, you should be able to:
- Explain how rational individuals make decisions when faced with constraints.
- Solve the consumer’s utility-maximization problem, both mathematically and graphically, and derive individual demand curves.
- Model the behavior of rational firm managers and show how that behavior changes when relevant variables change.
- Solve the firm’s cost-minimization problem, both mathematically and graphically, and derive the firms’ cost functions.
- Understand the strategic behaviors between individuals and firms.
- Think like an economist and investigate real world actions using economic tools learned in class.
- Recognize limitations and weakness of the models.
- Learn LaTeX.
Prerequisites
The prerequisites for this course are Econ 101 (Principles of Economics) and Math 141 or 161 (Calculus I).