The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design. - F.A. Hayek, 1974 Economics Nobel Laureate
Microeconomics is a collection of analytical tools for modeling and understanding how decisions made by agents (individuals and firms) in a context of market institutions lead to social coordination and the creation of value. This toolkit is the analytical foundation for exploring all fields and applications of economics as a social science, has many practical applications in business, finance, politics, and insights into any realm of human endeavors. Economics, after all, is the study of human action. At the intermediate level, these concepts are made more rigorous through the use of mathematical models, but we will first and foremost lay the theoretical foundations with economic intuition. As such, this class assumes you have met the required prerequisite courses by taking introductory economics and basic mathematics.
This class will add rigor to your thinking about the world by empowering you with the ability to model the choices and interactions of people and organizations in their economic capacities – as consumers, producers, firms, voters, etc.
This course will have been successful if you are able to comprehend and apply the tools and insights of microeconomics towards explaining real world phenomena. Primarily, this means applying models of rational choices for individual and firm behavior, identifying key features of various market structures (perfect price competition, monopoly, oligopoly, and monopolistic competition), and understanding the role of market institutions of property rights, prices, and profit and losses in bringing about social coordination.