1 x 2-hour workshop weekly
1 x 1-hour on-line lecture weekly
Enrolment not permitted
1 of BUSN1007, BUSN1204 has been successfully completed
Topic description

This topic is concerned with the study of markets and the behaviour of consumers and firms in both competitive and monopolistic markets. An understanding is developed of market demand and supply forces and the interaction of both in determining market outcomes. Insight is given into the behaviour of major decision-makers in the market place. These include: consumers (demand), producers or firms (supply) operating in competitive and monopolistic markets, and the role of government (e.g. taxes and subsidies) and the impact of government intervention on economic welfare.

Educational aims

This topic aims to understand the business applications of microeconomic concepts. The basics of consumer behaviour and the short-run and long-run output decisions of a business will be examined. Students will learn how to make comparisons between competitive and monopolistic market outcomes from both a business and societal perspective.

Expected learning outcomes
On completion of this topic you will be expected to be able to:

  1. Understand and explain the concept of scarcity; opportunity cost; demand and supply; economic profit; profit maximisation; short-run and long-run; economies and diseconomies of scale; and price discrimination
  2. Understand and explain, in general terms, how competitive markets determine, organise, and allocate scarce resources
  3. Understand and explain the concept of diminishing marginal utility and elasticity and their relationship with consumer behaviour and the market demand curve
  4. Understand and explain, using diagrammatic models and tools, the short-run and long-run adjustments of competitive markets
  5. Understand and explain the relationship between business costs and short-run and long-run output decisions, with reference to the returns to a variable output, returns to scale, and the minimum efficient scale of production
  6. Understand and apply the concept of price discrimination
  7. Understand the need for equity considerations and the efficiency impact of government taxes, subsidies, price floors and price ceilings