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Ec 121 a
Theory of Value
9 units (3-0-6)  | first term
Prerequisites: Ec 11 and Ma 1b (may be taken concurrently).
This course is the first half of the advanced course on General Equilibrium Theory, which is designed to equip students with a deep understanding of the core principles that govern economic systems at equilibrium. This first part delves into Consumer Choice Theory, where students will explore how individuals make consumption decisions based on their preferences, budget constraints, and the theory of utility maximization. Through a series of lectures and exercises, participants will learn to model consumer behavior and study how changes in market conditions affect consumer demand. Simultaneously, the course will cover Firm Theory, examining how firms make production and pricing decisions to maximize profits in competitive and non-competitive markets. Students will be introduced to the concepts of production functions, cost minimization, and profit maximization, alongside the analysis of market structures and their impact on firm behavior. This dual focus provides a comprehensive foundation for understanding the interactions between consumers and firms, setting the stage for more complex discussions on market equilibria, welfare economics, and policy implications in later parts of the course (Ec 121b). Through a blend of theoretical models and real-world applications, this course aims to develop critical thinking and analytical skills, preparing students for advanced studies in economics or careers that require a sophisticated understanding of how economies function at equilibrium.
Instructor: Saito