Course Title: Price Theory

Part A: Course Overview

Course Title: Price Theory

Credit Points: 12.00

Terms

Course Code	Campus	Career	School	Learning Mode	Teaching Period(s)
ECON1048	City Campus	Undergraduate	625H Economics, Finance and Marketing	Face-to-Face	Sem 1 2006, Sem 2 2006, Sem 1 2007, Sem 2 2007, Sem 1 2008, Sem 2 2008, Sem 1 2009, Sem 2 2009, Sem 1 2010, Sem 2 2010, Sem 1 2011, Sem 2 2011, Sem 1 2012, Sem 2 2012, Sem 1 2013, Sem 2 2013, Sem 1 2014, Sem 2 2014, Sem 1 2015, Sem 2 2015, Sem 1 2016, Sem 2 2016, Sem 1 2018, Sem 2 2018, Sem 1 2019, Sem 2 2019, Sem 1 2020
ECON1054	Kolej Metropolitan	Undergraduate	625H Economics, Finance and Marketing	Face-to-Face	Offsh 3 09, Offsh 3 10, Offsh 3 11
ECON1056	Singapore Inst of Management	Undergraduate	625H Economics, Finance and Marketing	Face-to-Face	Offsh 1 09, Offsh 3 09, Offsh 1 10, Offsh 3 10, Offsh 1 11, Offsh 3 11, Offsh1 12, Offsh3 12, Offsh3 13, Offsh1 14, Offsh3 14, Offsh1 15, Offsh3 15, Offsh1 16, Offsh3 16, Offsh3 18, Offsh1 19, Offsh3 19, Offsh1 20
ECON1173	Hong Kong Management Associatn	Undergraduate	625H Economics, Finance and Marketing	Face-to-Face	Offsh 3 10, Offsh 4 11
ECON1173	Hong Kong Management Associatn	Undergraduate	625H Economics, Finance and Marketing	Internet	Offsh3 13
ECON1268	RMIT University Vietnam	Undergraduate	625H Economics, Finance and Marketing	Face-to-Face	Viet2 2012, Viet3 2012, Viet1 2013, Viet2 2013, Viet3 2013, Viet1 2014, Viet2 2014, Viet3 2014, Viet1 2015, Viet3 2015, Viet1 2016, Viet2 2016, Viet1 2017, Viet1 2018, Viet3 2018, Viet3 2019
ECON1330	RMIT Vietnam Hanoi Campus	Undergraduate	625H Economics, Finance and Marketing	Face-to-Face	Viet3 2019

Course Coordinator: Dr. Martin Byford

Course Coordinator Phone: +61 3 9925 5892

Course Coordinator Email: martin.byford@rmit.edu.au

Pre-requisite Courses and Assumed Knowledge and Capabilities

Price theory extends, and builds upon, knowledge and techniques developed in Prices and Markets (ECON1020, ECON1025 or ECON1194, or equivalent course codes).
Students are expected to be familiar with the fundamentals of algebra. Knowledge of calculus is desirable but not essential.

Course Description

This course introduces students to the foundations of modern microeconomic theory.

In the first half of the course, students will learn to identify and analyse the trade-offs faced by consumers and producers. This analysis is essential for understanding individual decision making in a range of economic environments.

The second half of the course focuses on the source, and economic implications, of market power. Students will learn how monopolies can exploit their position in a market. In addition, students will be introduced to the fundamentals of strategic decision making, and learn how oligopoly market outcomes depend critically on the nature of competition in the market.

Objectives/Learning Outcomes/Capability Development

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On successful completion of this course you will be able to:

1. Critically analyse the consumer’s optimal choice problem and it’s relation to demand and consumer welfare.
2. Critically analyse the firm’s optimal choice problem and it's relation to input demands and measures of production costs.
3. Derive measures of market power for firms in monopoly and oligopoly markets.
4. Assess the impact of firm conduct within a market, on firm profitability and social welfare.
5. Understand the impact of information and uncertainty in economic decision making
6. Understand the fundamentals of strategic decision making.

Overview of Learning Activities

Activities include: Reading, note-taking, group activities, group discussions, problem solving and practice tests.

In this course you will be encouraged to be an active learner. Your learning will be supported through various in-class and online activities comprising individual and group work. These may include quizzes; assignments; prescribed readings; sourcing, researching and analysing specific information; solving problems; conducting presentations; producing written work and collaborating with peers on set tasks or projects.

Overview of Learning Resources

There will be a recommended text. Additional materials, for classes and for revision purposes, will be provided on Canvas (via myRMIT)

Various learning resources are available online through myRMIT/Canvas. In addition to topic notes; assessment details and a study schedule you may also be provided with links to relevant online information; readings; audio and video clips and communication tools to facilitate collaboration with your peers and to share information.

Resources are also available online through RMIT Library databases and other facilities. If you require assistance with the RMIT library facilities contact the Business Liaison Librarian for your school. Contact details for Business Liaison Librarians are located online on the RMIT library website.

Additional resources and/or sources to assist your learning will be identified by your course coordinator will be made available to you as required during the teaching period.

Overview of Assessment

 

The assessment tasks, their weighting and the course learning outcomes to which they are aligned are as follows:

Assessment Task 1: 10%
Linked CLOs: 1, 2, 3, 4, 5, 6

Assessment Task 2: 40%

Linked CLOs: 3, 4, 6

Assessment Task 3 - Final Examination: 50%

Linked CLOs: 1, 2, 3, 4, 5, 6

Feedback will be provided throughout the semester in class and/or in online forums through individual and group feedback on practical exercises and by individual consultation.