Intermediate Microeconomics

83 topics across 7 chapters

Chapter 1

Mathematical & analytical tools for micro

Constrained optimization (consumer/firm problems)

2 subtopics

Lagrangian setup + FOCs: solve 10 practice maximization/minimization problems

KKT conditions: corner solutions + inequality constraints (problem set)

Comparative statics & envelopes

2 subtopics

Implicit differentiation for demand/supply systems (drills)

Envelope theorem: interpret value functions (short exercises)

Duality basics (value functions & derivatives)

2 subtopics

Roy’s identity: recover Marshallian demand (worked examples)

Shephard’s lemma: recover Hicksian demand (worked examples)

Chapter 2

Consumer theory & demand

Preferences & utility representation

2 subtopics

Indifference curves, MRS, and common utility forms (practice set)

Revealed preference (WARP/SARP/GARP): test data sets (exercises)

Utility maximization & demand

3 subtopics

Derive Marshallian demand for Cobb-Douglas, CES, perfect subs/complements

Expenditure minimization & Hicksian demand (derive in 3 utility cases)

Slutsky equation: decompose price changes (compute in examples)

Elasticities & demand responses

2 subtopics

Price/income/cross elasticities: compute & interpret from demand functions

Elasticity and revenue: relate MR, demand, and pricing (problems)

Choice under uncertainty

2 subtopics

Expected utility, risk aversion (Arrow–Pratt), certainty equivalents (exercises)

Insurance & lotteries: optimal coverage and risk premiums (problem set)

Chapter 3

Producer theory, costs & supply

Technology & production

2 subtopics

Isoquants, MRTS, marginal products: compute & graph (exercises)

Returns to scale and productivity measures (short problems)

Cost minimization & cost functions

3 subtopics

Conditional factor demands via Lagrangian (practice)

Derive cost function; interpret Shephard’s lemma (problem set)

Short run vs long run costs; envelopes and cost curves (exercises)

Profit maximization & supply

2 subtopics

Competitive firm: supply, shutdown, and profits (worked examples)

Industry supply aggregation and long-run equilibrium intuition (problems)

Factor markets & input demand

2 subtopics

Competitive input demand: value of marginal product (exercises)

Monopsony: optimal hiring and welfare effects (problem set)

Chapter 4

Market equilibrium & welfare

Partial equilibrium: supply–demand and policy

2 subtopics

Solve equilibrium with linear/nonlinear demand & supply (drills)

Taxes, subsidies, quotas: incidence and comparative statics (problems)

Welfare economics (efficiency & surplus)

2 subtopics

Consumer/producer surplus and deadweight loss computations (problem set)

First/Second Welfare Theorems: apply to simple economies (exercises)

General equilibrium basics

2 subtopics

Edgeworth box: contract curve, core, and equilibria (problems)

Excess demand, Walras’ law, and equilibrium intuition (short proofs)

Chapter 5

Market structures & pricing

Monopoly & price discrimination

2 subtopics

Monopoly pricing with inverse demand and costs (problem set)

Price discrimination (1st/2nd/3rd degree): solve canonical examples

Oligopoly models

3 subtopics

Cournot equilibrium (2 firms and n firms): compute quantities/prices (problems)

Bertrand competition: homogeneous vs differentiated products (exercises)

Stackelberg model: leader–follower solution (problem set)

Monopolistic competition & entry

2 subtopics

Long-run free entry equilibrium and zero-profit condition (exercises)

Product differentiation & basic markup logic (Dixit–Stiglitz style) (problems)

Chapter 6

Strategic behavior, game theory & information

Static games & Nash equilibrium

3 subtopics

Best responses and pure-strategy Nash (solve 10 games)

Mixed strategies in 2×2 games (compute probabilities)

Dominance and iterated elimination (drills)

Dynamic games & subgame perfection

2 subtopics

Extensive-form representation & backward induction (problem set)

Repeated games: punishment strategies and cooperation conditions (exercises)

Information economics & mechanism design (intro)

3 subtopics

Adverse selection (lemons) & signaling (Spence): solve canonical models

Moral hazard & principal–agent constraints (incentive compatibility drills)

Auctions: first vs second price, bidding logic, revenue equivalence intuition

Chapter 7

Market failures & public policy

Externalities, public goods & common resources

3 subtopics

Pigouvian taxes/subsidies vs Coase bargaining (application problems)

Public goods: free riding, Lindahl pricing, provision rules (exercises)

Common-pool resources: tragedy of the commons + simple regulation tools

Regulation, antitrust & market power policy

2 subtopics

Natural monopoly & pricing: marginal cost pricing and Ramsey intuition (exercises)

Antitrust basics: merger/entry deterrence/vertical restraints (case-style drills)

Other departures from perfect markets (selected topics)

2 subtopics

Search frictions & price dispersion: simple models and predictions (exercises)

Behavioral micro basics: reference dependence and policy implications (short problems)