Learning outcomes:

The study and the understanding of the behavior of the economic units in the market

Aim: For the achievement of the above scope the theory of the consumer and the firm will be presented together with welfare analysis, analysis of equilibrium and analysis of the effects of competition and monopoly on profits and consumer welfare.


  • Code :             X23
  • Semester :     2nd
  • Effort :              7.5 ECTS
  • Hours :             3 per week
  • Type :                Economics
  • Department : Economics
  • Exams :             Yes

Course Contents:

Introduction - The economic problem. Consumer Theory: Consumer behavior , consumer equilibrium , Income and substitution effects – Slutsky’s equation, consumer surplus , the demand curve . Theory of Production: Production functions , production in the short run , the iso-cost curves, profit maximization of the firm, returns to scale , economies of scale , production in the long run . Cost theory: the nature of the cost, the cost curves in the short and long run and their relations, cost minimization , the expansion path of the firm , optimum point . Market Forms: perfect competition (equilibrium of the competitive firm , Pareto optimum and social welfare ) , monopoly (concept of monopoly power or market power , natural monopolies , barriers to entry , price discrimination , social welfare losses due to monopoly power ) . Comparison of perfect competition and monopoly in terms of social welfare .