Evaluate the implication of supply and demand and the effects of elasticity as it relates to various markets.
Interpret and graphically express cost curves to determine price point or profit of all types of markets.
Differentiate the characteristics of competitive, monopolistically competitive, oligopoly, and monopolistic market environments.
Illustrate fundamental economic principles by identifying economic problems and proposing available alternatives.
Interpret the market demand for labor and changes to the market demand for labor.
This course is an introduction to basic concepts governing the operation of the microeconomy, with specific emphasis placed on understanding microeconomic theory, policy, and issues as they relate to business decision-making. Students successfully completing this course will be able to comprehend the workings of the supply and demand model from both a graphical and mathematical perspective, explain the role that elasticity plays in the supply and demand model and know how to calculate and interpret various elasticities, understand utility maximization and the theory of consumer behavior, explain how cost structures differ in the short run and the long run, analyze various market structures in terms of their economic performance, and understand the workings of the various factor markets.
1. Describe concept of scarce resources as factors of production
2. Distinguish between positive and normative economic analysis
3. Identify five-step decision model
4. Express slope mathematically for economic variables
5. Define concept of opportunity cost
6. Describe concept of production possibilities
1. Express graphically laws of demand and supply
2. Distinguish between change in quantity demanded and change in demand
3. Identify different types of non-price determinants
1. Express graphically how demand and supply changes in various markets
2. Describe price ceilings, price floors and its impact on unemployment
3. Explain concept of externalities and impact on public goods
1. Explain how price elasticity of demand is a measure of consumer responsiveness to a price change
2. Calculate an elastic, inelastic, unitary elastic, perfectly elastic and perfectly inelastic demand
3. Explain why the price elasticity of demand varies along a given demand curve
1. Define fixed, variable, and total costs
2. Differentiate economic and accounting profit
3. Distinguish between explicit and implicit cost
4. Define the law of diminishing returns
5. Define economies, constant, and diseconomies of scale
6. Interpret costs curves graphically
1. Define characteristics of Competitive and Monopolist markets
2. Illustrate short & longrun cost curves for both markets
3. Illustrate demand curve facing firms operating in a competitive and monopolistic market environment
4. Explain profit maximizing quantity to produce for various types of markets
1. Define characteristics of Monopolistically Competitive and Oligopoly markets
2. Illustrate short run cost curves for both markets
3. Illustrate demand curve facing firms operating in a monopolistically competitive and oligopoly market environment
4. Explain differences in characteristics of markets
1. Define how the market for labor is subject to laws of demand and supply
2. Describe causefor change in the market demand for labor
3. Explain long term poverty solution involving investment in human capital
4. Describe concept of derived demand and impact of unions on wages
5. Explain why a market supply of labor curve slopes upward and causefor shift
6. Calculate and derive marginal revenue product (MRP) of labor curve for a firm