Course Description: A development of value and distribution theories. Detailed analysis of the reactions of consuming and producing units.

1. Introduction: Theoratical Models General Features of Economic Models The Factor Price Equilization Model The Economic Theory of Value Partial Equilibrium Analysis General Equilibrium Analysis The Mathematics of Optimization Maximization of a Function of One Variable Maximization of Functions of Several Variables Implicit Functions The Envelope Theorem Constrained Maximization Maximization Without Calculus Rules for Differentiating Univariate Functions

2. Choice and Demand: Preferences and Utility Theories of Consumer Choice Axioms of Rational Choice Indifference Curves Examples of Utility Functions Cobb-Douglas Utility Perfect Substitutes Perfect Complements Constant Elasticity of Substitution (CES) Utility Maximization Demand Functions Changes in Income Engel's Law Changes in a Good's Price The Individual's Demand Curve Compensated Demand Curves Shephard's Lemma Consumer Surplus Sample Exam 1 Questions Demand Relationships Among Goods The Two-Good Case Substitutes and Complements Net Substitutes and Complements Composite Commodities Market Demand and Elasticity Market Demand Curve Price Elasticity of Demand Price Elasticity and Total Expenditure Income Elasticity of Demand Cross-Price Elasticity of Demand

3. Production and Supply: Production Functions A Two-Input Production Function Marginal Productivity Average Physical Productivity Isoquant Maps Returns to Scale The Elasticity of Substitution Some Common Production Functions Cost Functions Definitions of Costs Cost-Minimizing Input Choices Total Cost Function Average and Marginal Cost Functions Shifts in Cost Curves Short-Run, Long-Run Distinction Profit Maximization and Supply The Nature and Behavior of Firms Marginal Revenue Short-Run Supply by a Price-Taking Firm Profit Maximization and Input Demand Producer Surplus Manager and the Principle-Agent Problem

4. Perfect Competition: The Partial Equilibrium Competitive Model Pricing in the Very Short-Run Short-Run Price Determination Long-Run Analysis Comparative Static Analysis of Long-Run Equilibrium Applied Competitive Analysis Economic Efficiency and Welfare Analysis Price Controls and Shortages Tax Incidence Analysis Trade Restrictions Assignment General Competitive Equilibrium Perfectly Competitive Price System A Simple Graphical Model of General Equilibrium The Edgeworth Box General Equilibrium Modeling Money in General Equilibrium Model The Efficiency of Perfect Competition Pareto Efficiency Efficiency in Production The Theory of Comparative Advantage Efficiency in Product Mix Competitive Prices and Efficiency Imperfect Competition Externalities Public Goods

5. Models of Imperfect Competition: Models of Monopoly Barriers to Entry Profit Maximization and Output Choice Monopoly and Resource Allocation Monopoly and Product Quality Price Discrimination Models of Oligopoly Pricing Under Homogeneous Oilgopoly Product Differentiation Contestable Markets and Industry Structure

6. Pricing in Input Markets: Firm's Demands for Inputs Profit Maximization and Derived Demand Comparative Statics of Input Demand Marginal Productivity Analysis and the Determinants of Factor Shares Monopoly in the Input Market Labor Supply Allocation of Time A Mathematical Analysis of Labor Supply Market Supply Curve for Labor Wage Variation Capital Capital and the Rate of Return Determination of the Rate of Return The Firm's Demand for Capital Present Discounted Value Approach to Investment Decisions Optimal Resource Allocation Over Time