Micro Economics I

Course Objectives

This course aims to:
✔ Develop an understanding of basic economic concepts and theories.
✔ Analyze how individuals and firms make economic decisions.
✔ Explain the role of supply and demand in market equilibrium.
✔ Study the effects of government policies and market structures on the economy.
✔ Provide knowledge on consumer behavior, production, and cost analysis.

Key Topics Covered

📌 1. Introduction to Microeconomics

• Definition and scope of microeconomics.

• Differences between microeconomics and macroeconomics.

• Importance of microeconomic analysis in daily life.

📌 2. Demand and Supply Analysis

• Law of Demand: Why do consumers buy more when prices fall?

• Law of Supply: How do producers respond to market changes?

• Market equilibrium and price determination.

• Factors affecting shifts in demand and supply curves.

📌 3. Consumer Behavior and Utility Theory

• Law of Diminishing Marginal Utility.

• Consumer choice and budget constraints.

• Indifference curves and consumer equilibrium.

📌 4. Production and Costs

• Short-run and long-run production functions.

• Law of Diminishing Returns and economies of scale.

• Cost structures: Fixed, Variable, Average, and Marginal Costs.

📌 5. Market Structures

• Perfect Competition: Many sellers, identical products.

• Monopoly: One seller dominates the market.

• Monopolistic Competition: Many sellers with differentiated products.

• Oligopoly: Few large firms controlling the market.

• Price determination in different market structures.

📌 6. Factors of Production and Income Distribution

• Land, labor, capital, and entrepreneurship.

• Wage determination and labor market dynamics.

• Role of capital and investment in economic growth.

📌 7. Market Failures and Government Intervention

• Externalities: Positive and negative effects on third parties.

• Public Goods vs. Private Goods.

• Government policies: Taxes, subsidies, and price controls.

📌 8. International Trade and Microeconomic Policies

• Comparative advantage and trade benefits.

• Tariffs, quotas, and trade restrictions.

• Effects of globalization on microeconomic behavior.

Why This Course is Important?

This course helps students:
✅ Develop critical thinking and problem-solving skills.
✅ Make informed financial and business decisions.
✅ Understand pricing strategies and market trends.
✅ Gain insights into consumer behavior and economic policies.
✅ Prepare for careers in economics, business, finance, and policymaking.

Microeconomics is essential for anyone interested in understanding how small-scale economic activities contribute to the larger economy and how businesses and individuals optimize resources for maximum efficiency and profit.