Microeconomic Theory Ι

Course Description

Consumer Theory: preferences, budget constraint, choice, (Marshallian) demand functions, indirect utility function and Roy`s identity, expenditure minimization, Hicksian or compensating demand functions, expenditure function and Shephard`s lemma, Slutsky equation, elasticities, consumer`s surplus. Production Theory: production functions, returns to scale, profit maximization, input demand functions and output supply function, profit function and Hotelling`s lemma, cost minimization, conditional input demand functions, cost function and Shephard`s lemma, cost curves, supply curve of a competitive firm, profits and producer`s surplus. Game Theory (introductory concepts): description of a game, solution through strategy dominance, Nash equilibrium, backwards induction and subgame perfection.

 
Indicative Course Prerequisites: Introduction to Economic Analysis Ι, Mathematics for Economists Ι, Mathematics for Economists ΙΙ