Fundamentals of Microeconomics

 Fundamentals of Microeconomics Article

BQOE II PRINCIPLES OF MICROECONOMICS

Munzarina Ahmad Samidi Norehan Abdullah Jamal Ali Zalina Mohd. Mohaideen

Project Owners:

Prof. Dr . Mansor Fadzil Prof. Doctor Shaari Abd. Hamid Wide open University Malaysia Munzarina Ahmad Samidi Norehan Abdullah Jamal Ali Zalina Mohd. Mohaideen Universiti Utara Malaysia Wan Azman Saini Wan Ngah Universiti Putra Malaysia Lilian Kek Siew Yick Available University Malaysia

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Moderators:

Converted & Edited: Pearson (M) Sdn. Bhd. Compiled by: Computer's desktop Publishing: Published by: Lilian Kek Siew Yick Open up University Malaysia Univision Press Sdn. Bhd. Meteor Doc. Sdn. Bhd. Lot 47-48, Jalan SR 1/9, Seksyen 9, Jalan Serdang Raya, Taman Serdang Raya, 43300 Seri Kembangan, Selangor Darul Ehsan

Initially Printing, Copyright laws @ Wide open University Malaysia (OUM), BQOE II Most rights arranged. No component to this operate may be produced in any form or in any respect without the drafted permission from the President, Available University Malaysia (OUM). Edition December 2008

Table of Contents

Training course Guide THEME 1 SUMMARY OF ECONOMICS 1 . 1 The Scope and Method of Economics Studies 1 . 1 . you Economic Technique 1 . 1 . 2 Microeconomics and Macroeconomics 1 . two Scarcity, Decision and Opportunity Cost 1 . 2 . one particular Problems of Scarcity 1 ) 2 . a couple of Choice and Opportunity Price 1 . three or more Production Limitations 1 . a few. 1 Development Possibility Table 1 . 3. 2 Creation Possibility Competition 1 . 4 Basic Economical Questions and Economic Systems 1 . 4. 1 Simple Economic Questions 1 . 4. 2 Monetary Systems 1 . 5 Circular Flow of Income and Expenditure Brief summary Tutorial Query DEMAND, SOURCE AND MARKETPLACE EQUILIBRIUM installment payments on your 1 Demand 2 . 1 ) 1 Regulation of Demand 2 . 1 ) 2 Demand and Amount Demanded installment payments on your 1 . several Demand Determinants 2 . 1 . 4 Individual Demand and Market Require 2 . 2 Supply installment payments on your 2 . one particular Law of Supply installment payments on your 2 . a couple of Supply and Quantity Supplied 2 . installment payments on your 3 Supply Determinants installment payments on your 2 . 5 Individual Source and Market Supply 2 . 3 Industry Equilibrium 2 . 3. one particular Equilibrium, Extra, and Shortage 2 . 3. 2 Change in Market Sense of balance 2 . 5 Market by means of Equation POWER ANALYSIS three or more. 1 Choice and Energy Theory a few. 2 Cardinal Utility Theory ix - x 1 2 a couple of 3 4 5 6th 7 eight 8 13 13 16 18 twenty-two 23 twenty-five 26 28 28 30 33 thirty five 35 thirty seven 38 41 42 43 45 twenty four 50 fifty-one 51

TOPIC 2

SUBJECT 3

iv

TABLE OF CONTENTS

a few. 2 . one particular Total Power and Marginal Utility three or more. 2 . two The Law of Diminishing Little Utility several. 2 . three or more Consumer Sense of balance 3. a few Ordinal Power Theory several. 3. one particular Choice and Priority several. 3. two Indifference Shape 3. several. 3 Price range Line a few. 3. 5 Consumer Sense of balance Summary Tutorial Question TOPIC 4 THEORY OF DEVELOPMENT AND COST THEORY 5. 1 Development Process 5. 1 . 1 Industry, Company and Herb 4. 1 . 2 Output and input 4. 1 . 3 Long-Run and Short-Run 4. 2 Production in Short-Run 5. 2 . one particular Total Product, Average Item and Marginal Product 5. 2 . a couple of Law of Diminishing Minor Returns 4. 2 . several Production Level 4. several Concept of Cost 4. several. 1 Monetary Costs 5. 3. a couple of Private Costs and Sociable Costs some. 3. several Explicit Costs and Implied Costs 4. 4 Short-Run Production Expense 4. 4. 1 Total Cost some. 4. a couple of Average Costs 4. some. 3 Marginal Costs Brief summary Tutorial Queries MARKET SET UPS 5. 1 Economic Revenue and Accounting Profit five. 2 The Characteristics of a Perfectly Competitive Marketplace 5. a few Characteristics of any Monopoly Marketplace 5. several. 1 No Close Substitutes 5. a few. 2 Obstacles to Admittance into Sector 5. several. 3 Organization as the cost Maker a few. 4 Electricity Source of Monopoly 5. four. 1 Control of Certain Creation Resources 5. 4. a couple of Economies of Scale your five. 4. a few Legal Barriers 5. 5 The Characteristics of your Monopolistic Market

52 fifty four 55 fifty nine 59 62 65 68 73 seventy four 76 77 79 70 81 82 83 85 86 88 89 fifth there’s 89 90 91 92 93 94 98 99 tips 101 103 105 a hundred and five 106 106 106 107 107 107 111

MATTER 5

STAND OF CONTENTS

v

Numerous Sellers Unhindered Freedom of Leaving or Entering Marketplace 5. 5. 3 Products that Can Be Differentiated 5. 6 Characteristics of the Oligopoly Marketplace 5. 6th. 1 Hardly any Firms a few. 6. a couple of Homogenous Items and Merchandise that Can Be Differentiated 5. six. 3 Barriers to Entry Summary

a few. 5. 1 5. a few. 2

109 110 one hundred ten 111 111 112 112 113

COURSE GUIDE

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