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BS3391: How microeconomic tools can be applied to analyze and overcome problems that economic agents: Microeconomics Essay, ABS, UK
|University||Aston Business School (ABS)|
This module will focus on how microeconomic tools can be applied to analyze and overcome problems that economic agents, such as business organizations and consumers, face in the real world. This module will follow `Intermediate Microeconomics’ and therefore requires a good prior knowledge of the Rational Choice Model (RCM) and an ability to apply economic models. Extensions of microeconomic models taught previously as well as new advanced microeconomic models will be introduced to improve the real-world applicability of the microeconomic theory.
The module will start with a brief revision of the standard RCM and, based on the RCM, will introduce a General Equilibrium analytical framework. This framework will allow us to use microeconomic tools to answer questions about welfare and equity. For example, how can we decide whether or not to undertake a policy that will benet some but harm others?
We will also discuss the consequences and potential solutions to problems arising from asymmetric information and uncertainty in labor markets and production. In this module, we will provide answers to questions such as How can a company incentivize employees and hire suitable applicants? and Is better to produce intermediate inputs internally or purchase them from third-party suppliers?
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