This is the second part of the core intermediate microeconomics module. This part examines microeconomic methods and tools used in real-life economic analysis. Particular attention is paid to public policy applications of this analysis. After recapitulating theory of consumers’ demand and the theory of the firm, this module covers general equilibrium theory in more detail. Following this study of markets, monopoly, game theory, oligopoly, externalities and public goods are discussed and analysed in more depth. Basic mathematical techniques and calculus are used in this module.

By the end of this module students will be able to:

• analyse the workings of different types of market structure;
• demonstrate knowledge and critical understanding of efficiency and welfare concepts and apply them to various situations;
• demonstrate knowledge and critical understanding of some of the problems that can arise in a market economy;
• identify and apply economic analysis to solve situations of market failure.