Principles of Microeconomics
By Srihari Chalasani
Module 1
Introduction to Microeconomics
Microeconomics A study of decisions of individuals and firms in relation to the scarcity of resou...
Conceptual Tools
Opportunity Cost The next best alternative that is given up while making a decision or choice. Ex...
Law Of Demand
Demand is negatively correlated with price. If price increases, demand will decrease. Ceteris par...
Law Of Supply
Amount of good that sellers are willing and able to sell at a given time. Marginal Cost VS Margin...
Module 2
Market Equilibrium
Market Equilibrium Market equilibrium is a state in a market where the quantity of a good or serv...
Consumer and Producer Surplus
Consumer and Producer Surplus Consumer and producer surplus are measures of the economic benefits...
Elasticity
Elasticity in economics measures the responsiveness of one variable to changes in another variabl...
Taxes and Government Intervention
Government Policies and Market Equilibrium Governments can intervene in markets using policies su...
Module 3
Behavior of a Firm
Assume all firms have a common goal of maximizing profit. Revenue = quantity x price Explicit co...
Costs
Variable Costs: Costs that depend on how many scooters are produced Raw materials, Labor, electr...
Marginal Principle
Cattle farmer – Likely a perfectly competitive market. Profit maximization point: AR = MR ...
Practice Problems
Module 4 - Monopoly
Introduction to Monopoly
In this module we explore markets with a single seller, known as a monopoly market. Key Question...
An exercise on understanding monopoly with an example
Here let us focus on applying the marginal principle to determine the profit-maximizing price of ...
The Social cost of Monopoly
Here we will compare the profit-maximizing price of a monopolist to the perfectly competitive pri...
The concept of Price Discrimination
Price discrimination is charging different prices to different consumers for the same product. Th...