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Krzysztof Malaga, - Microeconomics_ Static and Dynamic Analysis
Krzysztof Malaga
Poznan′ University of Economics and Business
Pozna′ Poland
Course description：：
This course provides a comprehensive overview of the fundamental concepts and principles of microeconomics. It introduces students to the models, assumptions, and empirical applications of modern microeconomics, as well as to the necessary mathematical tools. It covers topics such as economic behavior, consumer theory, theory of the firm, partial and general equilibrium theory, industrial organization, bargaining theory, and Pareto optimality. Students learn not only about economic outcomes at a given point of equilibrium, but also about dynamic economics, which includes both equilibrium and disequilibrium.
Contents 6
Mathematical Symbols 9
1 Introduction 12
2 Rationality of Choices Made by Individual Consumer 19
2.1 Preliminary Terms 20
2.2 Utility Function 28
2.3 Substitute, Independent and Complementary Goods 40
2.4 Marshallian Demand Function 52
2.4.1 Static Approach 52
2.4.2 Dynamic Approach 77
2.5 Hicksian Demand Function 84
2.5.1 Static Approach 85
2.5.2 Dynamic Approach 100
2.6 Substitution and Income Effects of Changes in Prices of Goods 105
2.6.1 Static Approach 107
2.6.2 Dynamic Approach 111
2.7 Questions 115
2.8 Exercises 117
3 Rationality of Choices Made by Group of Consumers 122
3.1 Simple Model of Exchange 123
3.2 Static Arrow-Hurwicz Model 131
3.3 Dynamic Arrow-Hurwicz Model 145
3.4 Questions 164
3.5 Exercises 165
4 Rationality of Choices Made by Individual Producers 168
4.1 Production Space and Production Function 170
4.2 Substitutability and Complementarity of Production Factors 174
4.3 Financial and Technological Aspects of a Firm’s Activity 178
4.4 Firm Acting in Perfect Competition—Long-Term Strategy 184
4.4.1 Static Approach 184
4.4.2 Dynamic Approach 202
4.5 Firm Acting in Perfect Competition—Short-Term Strategy 211
4.5.1 Static Approach 211
4.5.2 Dynamic Approach 233
4.6 Monopoly—Long-Term Strategy 241
4.6.1 Static Approach 241
4.6.2 Dynamic Approach 256
4.7 Monopoly—Short-Term Strategy 264
4.7.1 Static Approach 264
4.7.2 Dynamic Approach 281
4.8 Questions 288
4.9 Exercises 290
5 Rationality of Choices Made by a Group of Producers by Exogenously Determined Function of Demand for a Product 297
5.1 Firm Acting in Perfect Competition—Determining Optimal Output Level 298
5.2 Monopoly—Determining Optimal Price and Optimal Output Level 313
5.2.1 Static Approach 313
5.2.2 Dynamic Approach 326
5.3 Monopolistic Discriminatory Pricing on Two Different Markets 334
5.3.1 Static Approach 334
5.3.2 Dynamic Approach 349
5.4 Quantitative and Price Competition of Producers in a Duopoly 356
5.4.1 Cournot Duopoly Model and Its Equilibrium State 357
5.4.2 Stackelberg Duopoly Model and Its Equilibrium State 375
5.4.3 Comparative Analysis of Cournot and Stackelberg Duopoly Models 391
5.4.4 Bertrand Duopoly Model and Its Equilibrium State 397
5.5 Questions 415
5.6 Exercises 416
6 Rationality of Choices Made by a Group of Producers and Consumers 425
6.1 Static Market Model with Exogenous Functions of Supply and Demand 426
6.2 Dynamic Market Model of Two Goods with Exogenous Functions of Supply and Demand 431
6.3 Static Arrow-Debreu-McKenzie Model 436
6.4 Dynamic Arrow-Debreu-McKenzie Model 446
6.5 Questions 456
6.6 Exercises 457
7 Conclusion 461
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