ECON 2302 - Principles of Microeconomics

• Explain the role of scarcity, specialization, opportunity cost, and cost/benefit analysis in economic decision-making.
• Identify the determinants of supply and demand.
• Summarize the law of diminishing marginal utility and describe the process of utility maximization.
• Calculate supply and demand elasticities, identify the determinants of price elasticity of demand and supply, and demonstrate the relationship between elasticity and total revenue.
• Describe the production function and the Law of Diminishing Marginal Productivity; calculate and graph short-run and long-run costs of production.
• Identify the four market structures by characteristics; calculate and graph the profit maximizing price and quantity in the output markets by use of marginal analysis.
• Determine the profit maximizing price and quantity of resources in factor markets under perfect and imperfect competition by use of marginal analysis.
• Describe governmental efforts to address market failure such as monopoly power, asymmetric information, externalities, and public goods.
• Identify the benefits of free trade using the concept of comparative advantage.