Page 1 of 92
MULTIMEDIA UNIVERSITY
BACHELOR OF SCIENCE IN
ECONOMICS, BACHELOR OF
COMMERCE
BEC 2214: INTERMEDIATE
MICROECONOMICS
DEVELOPED AND PREPARED BY
NICHOLAS MUTINDA
BEC 2214: INTERMEDIATE MICROECONOMICS MULTIMEDIA UNIVERSITY MR. NICHOLAS MUTINDA
, Page 2 of 92
COURSE OUTLINE
CHAPTER ONE: CONSUMER BEHAVIOR
Consumer Preferences
Utility Functions
Optimal Choice/Consumer Equilibrium
Consumer Demand Functions
Expenditure Function
Slutsky Equation
CHAPTER TWO: THEORY OF PRODUCTION
Profit Maximization
Profit Function
Cost Minimization
Cost Function
Inverse Demand Functions
CHAPTER THREE: THEORY OF MARKETS
Perfect Competition
Monopoly.
Oligopoly.
Quantity and Price Leadership
Simultaneous Quantity and Price setting
CHAPTER FOUR: GAME THEORY
Introduction to Game Theory
Representation of a Game
Simultaneous-Move Game
Dominant & Dominated Strategy
Nash Equilibrium
Bayesian Nash Equilibrium
Dynamic Games
Sequential Rationality
BEC 2214: INTERMEDIATE MICROECONOMICS MULTIMEDIA UNIVERSITY MR. NICHOLAS MUTINDA
, Page 3 of 92
LECTURES SCHEDULE
WEEK TOPIC
1 TOPIC 1: CONSUMER BEHAVIOR
Consumer Preferences
Utility Functions
2 TOPIC 1: CONSUMER BEHAVIOR
Optimal Choice/Consumer Equilibrium
Consumer Demand Functions
3 TOPIC 1: CONSUMER BEHAVIOR
Expenditure Function
Slutsky Equation
4 TOPIC 2: THEORY OF PRODUCTION
Profit Maximization
Profit Function
5 TOPIC 2: THEORY OF PRODUCTION
Cost Minimization
Cost Function
Inverse Demand Functions
6 CAT 1
7 TOPIC 3: THEORY OF MARKETS
Perfect Competition
Monopoly.
8 TOPIC 3: THEORY OF MARKETS
Oligopoly.
Quantity and Price Leadership
Simultaneous Quantity and Price setting
9 TOPIC 4: GAME THEORY
Introduction to Game Theory
Representation of a Game
Simultaneous-Move Game
Dominant & Dominated Strategy
11 TOPIC 4: GAME THEORY
Nash Equilibrium
Bayesian Nash Equilibrium
Dynamic Games
Sequential Rationality
12 CAT 2
13 MAIN EXAM
14 MAIN EXAM
BEC 2214: INTERMEDIATE MICROECONOMICS MULTIMEDIA UNIVERSITY MR. NICHOLAS MUTINDA
, Page 4 of 92
READING MATERIALS
Course Textbooks
1. Hal R. Varian (1992): Intermediate Microeconomics: A Modern approach,
W.W Norton and company NewYork.
2. Kreps, David M. (1990), A Course in Microeconomic Theory. Harvester
Wheat sheaf, NewYork
3. Robert P.K. (2015). Microeconomics with MyEconLab, Global Edition 8thEdition
Course Journals
1. Journal of Economic Perspectives. ISSN:0895-3309
2. Econometrica. ISSN: 0012-9682 (Print). ISSN: 1468-0262(Online).
3. Review of Economic Studies. Online ISSN 1467-937X - Print ISSN0034-6527
Course Reference Textbooks
1. Pindyck, Robert, and Daniel Rubinfeld, "Microeconomics". LatestEdition
2. Gravelle, H. R. Rees (2007), Microeconomics Longmans:London
3. Jeffrey P, (2013) Microeconomics with Calculus, Global Edition,3rdEdition
Course Reference Journals
1. Economic Journal. Online ISSN:1468-0297
2. Journal of Economic Literature.ISSN0022-0515
3. American Economic Review. ISSN:0002-8282
BEC 2214: INTERMEDIATE MICROECONOMICS MULTIMEDIA UNIVERSITY MR. NICHOLAS MUTINDA
MULTIMEDIA UNIVERSITY
BACHELOR OF SCIENCE IN
ECONOMICS, BACHELOR OF
COMMERCE
BEC 2214: INTERMEDIATE
MICROECONOMICS
DEVELOPED AND PREPARED BY
NICHOLAS MUTINDA
BEC 2214: INTERMEDIATE MICROECONOMICS MULTIMEDIA UNIVERSITY MR. NICHOLAS MUTINDA
, Page 2 of 92
COURSE OUTLINE
CHAPTER ONE: CONSUMER BEHAVIOR
Consumer Preferences
Utility Functions
Optimal Choice/Consumer Equilibrium
Consumer Demand Functions
Expenditure Function
Slutsky Equation
CHAPTER TWO: THEORY OF PRODUCTION
Profit Maximization
Profit Function
Cost Minimization
Cost Function
Inverse Demand Functions
CHAPTER THREE: THEORY OF MARKETS
Perfect Competition
Monopoly.
Oligopoly.
Quantity and Price Leadership
Simultaneous Quantity and Price setting
CHAPTER FOUR: GAME THEORY
Introduction to Game Theory
Representation of a Game
Simultaneous-Move Game
Dominant & Dominated Strategy
Nash Equilibrium
Bayesian Nash Equilibrium
Dynamic Games
Sequential Rationality
BEC 2214: INTERMEDIATE MICROECONOMICS MULTIMEDIA UNIVERSITY MR. NICHOLAS MUTINDA
, Page 3 of 92
LECTURES SCHEDULE
WEEK TOPIC
1 TOPIC 1: CONSUMER BEHAVIOR
Consumer Preferences
Utility Functions
2 TOPIC 1: CONSUMER BEHAVIOR
Optimal Choice/Consumer Equilibrium
Consumer Demand Functions
3 TOPIC 1: CONSUMER BEHAVIOR
Expenditure Function
Slutsky Equation
4 TOPIC 2: THEORY OF PRODUCTION
Profit Maximization
Profit Function
5 TOPIC 2: THEORY OF PRODUCTION
Cost Minimization
Cost Function
Inverse Demand Functions
6 CAT 1
7 TOPIC 3: THEORY OF MARKETS
Perfect Competition
Monopoly.
8 TOPIC 3: THEORY OF MARKETS
Oligopoly.
Quantity and Price Leadership
Simultaneous Quantity and Price setting
9 TOPIC 4: GAME THEORY
Introduction to Game Theory
Representation of a Game
Simultaneous-Move Game
Dominant & Dominated Strategy
11 TOPIC 4: GAME THEORY
Nash Equilibrium
Bayesian Nash Equilibrium
Dynamic Games
Sequential Rationality
12 CAT 2
13 MAIN EXAM
14 MAIN EXAM
BEC 2214: INTERMEDIATE MICROECONOMICS MULTIMEDIA UNIVERSITY MR. NICHOLAS MUTINDA
, Page 4 of 92
READING MATERIALS
Course Textbooks
1. Hal R. Varian (1992): Intermediate Microeconomics: A Modern approach,
W.W Norton and company NewYork.
2. Kreps, David M. (1990), A Course in Microeconomic Theory. Harvester
Wheat sheaf, NewYork
3. Robert P.K. (2015). Microeconomics with MyEconLab, Global Edition 8thEdition
Course Journals
1. Journal of Economic Perspectives. ISSN:0895-3309
2. Econometrica. ISSN: 0012-9682 (Print). ISSN: 1468-0262(Online).
3. Review of Economic Studies. Online ISSN 1467-937X - Print ISSN0034-6527
Course Reference Textbooks
1. Pindyck, Robert, and Daniel Rubinfeld, "Microeconomics". LatestEdition
2. Gravelle, H. R. Rees (2007), Microeconomics Longmans:London
3. Jeffrey P, (2013) Microeconomics with Calculus, Global Edition,3rdEdition
Course Reference Journals
1. Economic Journal. Online ISSN:1468-0297
2. Journal of Economic Literature.ISSN0022-0515
3. American Economic Review. ISSN:0002-8282
BEC 2214: INTERMEDIATE MICROECONOMICS MULTIMEDIA UNIVERSITY MR. NICHOLAS MUTINDA
