At the end of this learning unit, the student is able to :

• Perfect markets

Consumer choice, demand and elasticity, production decision and supply, law of supply and demand, market equilibrium and economic efficiency.

• Technologies and cost minimisation

Production function, average and marginal income, returns to scale, short and long-term cost minimisation, fixed and variable costs, total, average and marginal costs, economies of scale.

• (Absence of) market forces and price-quantity decision

Total, average and marginal revenue, profit maximisation, marginal and average conditions, elasticity and margin.

• Price discrimination

Pricing and market segmentation, two-part pricing and related sales, aggregation of demand and groups sales.

• Advertising

Optimal advertising expenditure: the Dorfman-Steiner model.

• Oligopolistic competition and agreement

Cournot duopoly and best response, Stackelberg quantity leadership and the advantage of initiative, Bertrand price war, collusion, coordination and incitement to cheat.

• Other topics, chosen by the teacher
• Theory of consumer choice, market failures, vertical relationships, aspects of gaming theory.