ECO 2144: Microeconomic Theory I - University of Ottawa

This course, ECO 2144: Microeconomic Theory I builds upon foundational microeconomic concepts, advancing students' understanding of microeconomic theory with practical applications for policy analysis. The course covers core topics such as supply and demand, consumer choice under constraints, demand analysis, consumer welfare, firm production and cost structures, competitive firms and markets, and the applications of the competitive model. It also examines general equilibrium and economic welfare, emphasizing both normative and positive aspects of microeconomics. Using static and comparative static analyses, the course delves into market mechanisms, price elasticity, and the dynamics of perfect competition.

Students will explore consumer behavior through concepts like preferences, utility functions, indifference maps, budget constraints, and the effects of income and substitution on demand. Firm theory is covered in-depth, encompassing production functions, economies of scale, cost functions, and profit maximization across short- and long-term periods. By examining industry equilibrium and factors of production - capital, labor, and natural resources - students gain insights into economic rents and quasi-rents. Through this, students develop skills to model individual and firm behavior within markets, understand perfect competition, and assess economic welfare. Prerequisites include introductory economics (ECO 1104) and one of several math courses (MAT 1300, MAT 1308, MAT 1320, or MAT 1330).