Microeconomic Theory

Microeconomic theory concentrates on the study of the determination of relative prices and their importance in shaping the allocation of resources and the distribution of income in an economy. We will study the optimizing behavior of households in a variety of settings: buying goods and services, saving, and labor supply decisions. We will also examine the behavior of firms in different market structures. Together, the theories of household and firm behavior help illumine contemporary economic issues (discrimination in labor markets, mergers in the corporate world, positive and negative externalities, for example). (MATH 0121 and ECON 0155) 3 hrs. lect.