Microeconomic Theory

Microeconomic theory focuses on developing our understanding of how individuals make decisions in a world of scarce resources. The same principles that govern market-based decisions also govern non-market-based decisions. The course focuses on analyzing the decision-making process of rational individuals in different contexts having various objectives such as utility maximization from consumption, cost minimization in production, and profit maximization in different market environments. Our discussion on market structures focuses on the simplest of markets (perfectly competitive markets), single-seller markets (monopolies), and oligopolistic markets, where firms are involved in strategic interactions with each other. Finally, we analyze situations in which markets fail to allocate resources efficiently and the role of public policies in addressing these failures. Students may not take both ECON S-1010 and MGMT S-8010 for degree or certificate credit.