Handout in Microeconomics 2

Abstract

The Microeconomics 2 course focuses on producer behavior, cost analysis, and firm decisions under different market structures. It begins with the theory of production, defining production and examining the factors of production, followed by detailed analysis of short-run and long-run production, including marginal and average products, diminishing returns, isoquants, and economies of scale. The course then covers cost theory, distinguishing between explicit and implicit costs and between accounting and economic profit, and explores the structure of costs in both the short run and long run. Finally, it analyzes how firms behave in various market forms, with particular emphasis on perfect competition, including profit maximization and supply decisions. The course concludes with a general revision and a final examination.