Microeconomic theory
Professor John Freebairn
Two 1.5-hour lectures per week * First semester * Clayton
Objectives On completion of this subject students should be able to use and apply intermediate microeconomics with confidence in a wide variety of conceptual and applied areas of economics; have an appreciation of, and an introductory understanding of, the key ideas of advanced microeconomic theory commonly used in applied analysis; have gained first hand experience in the application of microeconomic principles to the analysis of a range of economic issues; and have the microeconomic techniques to undertake successfully other fourth year subjects and some fifth year subjects taught by the Department.
Synopsis Theory of the firm; consumer theory; competitive market behaviour; the gains from trade and welfare economics; market power; externalities and public goods; and imperfect knowledge, risk and uncertainty.
Assessment Written (3 or 4 assignments): 35% * Examination (3 hours): 65%
Recommended texts
Gravelle H and Rees R Microeconomics 2nd edn, Longmans, 1992
Landsburg S E Price theory and applications 2nd edn, Dryden, 1992