Description

Micro Economics As Level Book 3

TABLE OF CONTENTS
UNIT 1 THEORY OF CONSUMER BEHAVIOUR
CARDINAL APPROACH
Law of Diminishing Marginal Utility:
Law of Equi-marginal Utility
ORDINAL APPROACH:
Budget line
Indifference Curves
Consumer Equilibrium through the Ordinal Approach:
PAST PAPER QUESTIONS
UNIT 2 PRODUCTION AND COST
THE LAW OF DIMINISHING RETURNS (LAW OF VARIABLE PROPORTIONS):
LEAST-COST INPUTS COMBINATION IN THE LONG RUN:
ISOCOST AND ISOQUANT APPROACH:
SCALE OF PRODUCTION AND RETURNS TO SCALE:
SHORT-RUN COSTS:
RELATIONSHIP BETWEEN SHORT-RUN COSTS & LAW OF DIMINISHING RETURNS
ECONOMIES AND DISECONOMIES OF SCALE:
SMALL FIRMS:
PAST PAPER QUESTIONS
UNIT 3 RULES OF FIRM’S BEHAVIOUR
1 ECONOMIC THEORY OF PROFIT MAXIMIZATION
2 BUSINESS CONTINUITY RULES
3 TYPES OF PROFITS
PAST PAPER QUESTIONS
UNIT 4 PERFECT COMPETITION
PRICE AND OUTPUT DETERMINATION IN SHORT RUN
SHORT-RUN PRICE AND OUTPUT DETERMINATION:
Types and Determination of Profit
The Shutdown case of a perfectly competitive firm
Derivation of the supply curve of a perfectly competitive industry in the short run
PRICE AND OUTPUT DETERMINATION IN LONG RUN
IS PERFECT COMPETITION A REALISTIC MODEL?
UNIT 5 MONOPOLY
PRICE AND OUTPUT DETERMINATION IN SHORT RUN
Types of profits:(Micro Economics As Level book 3)
Types of losses
PRICE AND OUTPUT DETERMINATION IN LONG RUN
BARRIERS TO ENTRY
UNIT 6 MONOPOLISTIC COMPETITION
PRICE AND OUTPUT DETERMINATION IN SHORT RUN
PRICE AND OUTPUT DETERMINATION IN LONG RUN
UNIT 7 OLIGOPOLY
PRICE AND OUTPUT DETERMINATION IN OLIGOPOLY
Kinked Demand Curve
Price Leadership
Cartel:
Game Theory
MERGER AND INTEGRATION (MCQS ONLY)
UNIT 8 COMPARISON OF MARKET STRUCTURES
UNIT 9 OBJECTIVES, DISCRIMINATION,& CONTESTABILITY
OBJECTIVES OF FIRMS
PRICE DISCRIMINATION
CONTESTABLE MARKETS
THEORY OF EXCESS CAPACITY
PAST PAPER QUESTIONS
UNIT 10 ECONOMIC EFFICIENCY AND MARKET FAILURE
PRODUCTIVE EFFICIENCY (PE)
ALLOCATIVE EFFICIENCY (AE)
MARKET FAILURE:
1-allocation of resources:
2-allocation of resources:
3 Markets of Public Goods:
4 knowledge
5 immobility
6 termism

(Micro Economics As Level book 3)
GOVERNMENT MICROECONOMIC OBJECTIVES:
POLICIES TO CORRECT MARKET FAILURE OF NEGATIVE EXTERNALITIES AND DEMERIT GOODS
1 Taxes
2 and Regulation
3 bodies
4 in property rights
5 of Information
6 Permits
POLICIES TO CORRECT MARKET FAILURE OF POSITIVE EXTERNALITIES AND MERIT GOODS
1
2 and Regulation
3 of Information
4 Direct Provision of Goods and Services
POLICIES TO CORRECT MARKET FAILURE OF PUBLIC GOODS
POLICIES TO CORRECT THE MARKET FAILURE OF IMPERFECT MARKETS
COST-BENEFIT ANALYSIS (CBA):
ARE MONOPOLIES ALWAYS BAD FOR CONSUMERS?
PAST PAPERS QUESTIONS
UNIT 11 LABOUR MARKET
THE SUPPLY CURVE
1 Curve for an Individual Worker
2 Market Supply Curve for Labour
3 of Labour for a Perfectly Competitive Firm:
4 of Labour in a Monopsony
5 of labour with a Trade Union:
DEMAND FOR LABOUR OR MARGINAL REVENUE PRODUCT (MRP) THEORY:
WAGE DETERMINATION IN PERFECT MARKET
MONOPSONY
TRADE UNION
WAGE DIFFERENTIALS
TRANSFER EARNINGS& ECONOMIC RENT
PAST PAPER QUESTIONS
UNIT 12 INEQUALITY AND POLICIES TO REDISTRIBUTE INCOME
MEASURING INEQUALITY
1 curve
2 coefficient
3 curve
GOVERNMENT POLICIES TO REDISTRIBUTE INCOME AND WEALTH
1 benefits (transfer payments)
2 the tax system
3 policies