Flinders University - BUSN1013: Economics for Business

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, producers operating in competitive and monopolistic markets, and the role of government and the impact of government intervention on economic welfare. 

On completion of this topic, you should be able to:

• 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;
• understand and explain how competitive markets determine, organise, and allocate scarce resources;
• understand and explain the concept of diminishing marginal utility and elasticity and their relationship with consumer behaviour and the market demand curve;
• understand and explain, using diagrammatic models and tools, the short-run and long-run adjustments of competitive markets;
• understand and apply the concept of price discrimination;
• understand the need for equity considerations and the efficiency impact of government taxes, subsidies, price floors and price ceilings.