Microeconomics
Associate Professor Bill Battersby
6 points * One 2-hour lecture and one 1-hour tutorial per week * Distance approximately 12 hours per week * First semester * Gippsland * Prerequisite: GBU1101
Objectives Building on knowledge gained in first year economics a detailed model of a market economy is constructed. Using this analytical model issues of efficiency in the use of productive resources are considered. The student learns to critically assess the economic environment to which they will contribute as graduates. Skills in the application of economics principles to business and social policy decisions are developed. The knowledge and understanding gained in this subject will provide the essential basis for more advanced studies in economics.
Synopsis The subject covers the theory of consumer choice and its relationship to demand, production, costs and supply. It looks at pricing and output decisions of firms in various market structures, including perfect competition, monopoly, monopolistic competition and oligopoly. The subject considers the issue of efficiency of resource allocation and the problems of externalities, public goods and imperfect information.
Assessment Assignment one (1500 words): 15% *Assignment two (1500 words): 15% * Examination (3 hours): 70%
Prescribed texts
Salvatore D Microeconomics 2nd edn, Harper Collins, 1994