Intermediate Microeconomic Theory

Unit 1 – Consumer Theory in Microeconomics

Unit 2 – Production and Costs

Unit 3 – Perfectly Competitive Markets

Unit 4 – Monopoly Pricing Strategies

Unit 5 – Monopolistic Competition & Oligopoly

Unit 6 – Factor Markets and Income Distribution

Unit 7 – General Equilibrium & Economic Welfare

Unit 8 – Externalities and Public Goods

Unit 9 – Asymmetric Info & Market Signaling

Unit 10 – Behavioral Economics: Bounded Rationality

Unit 11 – Game Theory: Strategic Decision-Making

Unit 12 – International Trade & Comparative Advantage

## What do you learn in Intermediate Microeconomic Theory

Intermediate Micro dives into consumer behavior, firm theory, and market structures. You'll explore utility maximization, cost minimization, and profit maximization. The course covers demand and supply analysis, production theory, and game theory. You'll also learn about market failures, externalities, and public goods. It's all about understanding how economic agents make decisions and how markets work.

## Is Intermediate Microeconomic Theory hard?

Intermediate Micro can be challenging, especially if you're not a math person. It's definitely a step up from intro econ courses. The concepts aren't too bad, but the math can get tricky with all the calculus and optimization problems. Most students find it manageable with consistent effort, but it's not a blow-off class by any means. Be prepared to put in some work.

## Tips for taking Intermediate Microeconomic Theory in college

1. Use [Fiveable Study Guides](https://fiveable.me/cram-mode) to help you cram. 🌶️
2. Practice, practice, practice! Solve lots of problems, especially those involving utility maximization and cost minimization.
3. Draw graphs and diagrams. Visual representations help a ton with concepts like indifference curves and isoquants.
4. Form study groups. Explaining concepts to others can really solidify your understanding.
5. Stay on top of the math. Brush up on calculus if needed.
6. Use real-world examples to understand theories. Think about how firms like Amazon or Apple make decisions.
7. Watch "The Big Short" for a fun look at market failures and information asymmetry.
8. Read "Freakonomics" to see microeconomic principles applied to everyday situations.

## Common pre-requisites for Intermediate Microeconomic Theory

1. Principles of Microeconomics: This intro course covers basic economic concepts and theories. It lays the foundation for understanding consumer and producer behavior.

2. Calculus I: This math course is crucial for understanding optimization problems in microeconomics. It covers derivatives and integrals, which are used extensively in intermediate micro.

## Classes similar to Intermediate Microeconomic Theory

1. Intermediate Macroeconomic Theory: This course focuses on the economy as a whole. It covers topics like economic growth, inflation, and unemployment.

2. Game Theory: This class explores strategic decision-making. It's all about understanding how people and firms interact when their choices affect each other.

3. Industrial Organization: This course dives deep into market structures and firm behavior. It looks at how companies compete and how markets function in the real world.

4. Behavioral Economics: This class combines psychology with economics. It explores how people actually make decisions, often deviating from traditional economic models.

## Majors related to Intermediate Microeconomic Theory

1. Economics: Focuses on understanding how individuals, businesses, and governments allocate resources. Economics majors study both micro and macroeconomic theories and their applications.

2. Business Administration: Covers a broad range of business topics including finance, marketing, and management. Microeconomic principles are crucial for understanding business decision-making.

3. Public Policy: Examines how governments develop and implement policies. Understanding microeconomics is essential for analyzing the impacts of various policy decisions.

4. Mathematics: Involves the study of quantity, structure, space, and change. Many economic models and theories rely heavily on mathematical concepts and techniques.

## What can you do with a degree in Intermediate Microeconomic Theory?

1. Economic Consultant: Applies economic analysis to real-world problems. Economic consultants work with businesses and governments to provide insights on market trends and policy impacts.

2. Data Analyst: Uses statistical methods to interpret complex data. In this role, you'd apply microeconomic principles to analyze market trends and consumer behavior.

3. Policy Analyst: Evaluates the effects of existing and proposed policies. This job involves using microeconomic models to predict how policy changes might impact various economic agents.

4. Financial Analyst: Assesses investment opportunities and financial performance. Understanding firm behavior and market structures is crucial in this role.

## Intermediate Microeconomic Theory FAQs

1. How much math is involved in Intermediate Micro? There's quite a bit of math, mainly calculus and basic algebra. You'll use math to solve optimization problems and derive economic models.

2. Can I skip the textbook readings? Not recommended. The textbook often provides detailed explanations and examples that complement lectures.

3. Are there any good online resources for this course? Yes, Khan Academy and MIT OpenCourseWare have great materials on intermediate microeconomics. They're super helpful for reviewing concepts.

Economics

1.8 Elasticity of demand

1.7 Income and substitution effects

1.6 Budget constraints and consumer choice

1.5 Consumer preferences and utility maximization

1.4 Supply and demand analysis

1.3 Absolute and comparative advantage

1.2 Production possibilities frontier and economic growth

1.1 Scarcity, choice, and opportunity cost

2.6 Economies and diseconomies of scale

2.5 Short-run and long-run costs

2.4 Cost minimization and cost curves

2.3 Isoquants and isocost lines

2.2 Marginal product and diminishing returns

2.1 Production functions: Short run and long run

3.5 Efficiency in perfect competition

3.4 Economic rent, producer surplus, and economic profit

3.3 Short-run and long-run equilibrium in perfect competition

3.1 Characteristics of perfect competition

3.2 Profit maximization and the competitive firm's supply curve

4.6 Pricing strategies: Peak-load pricing, two-part tariffs, and bundling

4.5 Natural monopoly and regulation

4.1 Characteristics of monopoly

4.3 Inefficiency of monopoly and deadweight loss

4.4 Price discrimination

4.2 Profit maximization under monopoly

5.4 Characteristics of oligopoly

5.3 Short-run and long-run equilibrium in monopolistic competition

5.5 Cournot, Bertrand, and Stackelberg models

5.2 Product differentiation and advertising

5.1 Characteristics of monopolistic competition

5.6 Cartels and game theory

5.7 Contestable markets and barriers to entry

6.1 Derived demand for factors of production

6.2 Marginal productivity theory of income distribution

6.3 Labor markets and wage determination

6.4 Capital markets and interest rates

6.5 Land markets and rent

6.6 Income inequality and the Lorenz curve

7.1 Partial and general equilibrium analysis

7.2 Edgeworth box and contract curve

7.3 Pareto efficiency and the First Welfare Theorem

7.4 Market failures and the Second Welfare Theorem

7.5 Social welfare functions and income redistribution

8.1 Positive and negative externalities

8.2 Private solutions to externalities: Coase theorem

8.3 Government solutions to externalities: Taxes, subsidies, and regulation

8.4 Characteristics of public goods

8.5 Free-rider problem and the provision of public goods

8.6 Efficient provision of public goods

9.2 Moral hazard and principal-agent problems

9.3 Signaling and screening in markets with asymmetric information

9.4 Efficiency wages and incentives

9.1 Adverse selection and the lemons problem

10.1 Prospect theory and loss aversion

10.2 Endowment effect and status quo bias

10.3 Framing effects and anchoring

10.4 Bounded rationality and satisficing behavior

10.5 Intertemporal choice and hyperbolic discounting

11.1 Static and dynamic games

11.2 Nash equilibrium and dominant strategies

11.3 Repeated games and the Folk Theorem

11.4 Sequential games and subgame perfect equilibrium

11.5 Bargaining theory and the Nash bargaining solution

12.1 Absolute and comparative advantage revisited

12.2 Heckscher-Ohlin model and factor endowments

12.3 Gains from trade and the effects of trade restrictions

12.4 Trade policy: Tariffs, quotas, and subsidies

12.5 International factor movements and foreign direct investment

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