EET 300 – MICROECONOMICS THEORY III NOTES

Microeconomics Theory

THEORY OF THE FIRM

Profit maximization and technology

Production sets, input requirements functions Cost functions

Demand and supply functions

Algebraic approaches to profit maximization and cost minimization Duality

THEORY OF THE CONSUMERS

Consumer preferences and consumer behaviour. Utility functions Expenditure functions

Indirect utility functions The Slutsky equation

Demand and supply functions Duality in consumption

Axioms of revealed preference Expected Utility

Risk aversion

THEORY OF THE MARKET

Monopoly

Pure competition Oligopoly

The cournot-Nash equilibrium Stackelber’s model

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