University of Melbourne - ECON10004: Introductory Microeconomics (Solutions)

This subject is an introduction to microeconomic theory and policy. Topics include the theory of perfectly competitive markets, welfare analysis and the role of government in the economy, theory of the firm (production and costs), game theory, and effects of market structure on resource allocation.

✔ On successful completion of the subject, students should be able to:

• Understand the operation of the economy, and to guide decision-making by individuals, businesses and government in solving the key economic problem of meeting unlimited wants with limited resources;

• Explain the concepts of market demand, supply and equilibrium; and apply the market model to explain the determination of prices, quantities and wellbeing;

• Explain how market and social welfare outcomes are affected by changes in demand and supply, and by changes of government policy;

• Explain in what circumstances and in what forms intervention by government in the operation of the economy can improve efficiency and social welfare;

• Identify "strategic situations" in economic activity, and be able to analyse and predict outcomes of strategic situations;

• Identify the main characteristics of different market structures, and describe and evaluate the nature of decisions and outcomes in the different market structures;

• Explain the nature, role and limitations of theory and models in economic analysis; and

• Proceed to the study of other economics and commerce subjects that have a knowledge of introductory microeconomics as a prerequisite.

SUBJECT CODE

SUBJECT NAME

ACCT10001

Accounting Reports and Analysis

ACCT10002

Introductory Financial Accounting

ACCT20001

Accounting for Management Decisions

ECOM20001

Econometrics 1

ECOM30001

Basic Econometrics

ECOM30002

Econometrics 2

ECON10003

Introductory Macroeconomics

ECON10004

Introductory Microeconomics

ECON10005

Quantitative Methods 1

ECON20002

Intermediate Microeconomics

ECON20003

Quantitative Methods 2

FNCE20005

Corporate Financial Decision Making

FNCE30001

Investments

FNCE30007

Derivative Securities

FNCE40001

Advanced Corporate Finance

MAST10010

Data Analysis

MAST20005

Statistics