Price Theory

RMIT University Vietnam

Course Description

  • Course Name

    Price Theory

  • Host University

    RMIT University Vietnam

  • Location

    Ho Chi Minh City, Vietnam

  • Area of Study

    Business, Economics

  • Language Level

    Taught In English

  • Prerequisites

    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.

    Hours & Credits

  • Host University Units

    12
  • Recommended U.S. Semester Credits
    4
  • Recommended U.S. Quarter Units
    1
  • Overview

    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 learn how oligopoly market outcomes depend critically on the nature of competition in the market.

     

    Objectives/Learning Outcomes/Capability Development

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

    • Critically analyse the consumer’s optimal choice problem to derive demand and quantify consumer welfare.
    • Critically analyse the firm’s optimal choice problem to derive input demands and construct measures of production costs.
    • Derive measures of market power for firms in monopoly and oligopoly markets.
    • Assess the impact of firm conduct within a market, on firm profitability and social welfare.
    • Understand the impact of uncertainty in economic 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 prescribed text. Additional materials, for classes and for revision purposes, will be provided on BlackBoard (via myRMIT)

    Various learning resources are available online through myRMIT /Blackboard. 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: 25% 
    Linked CLOs: 1, 2

    Assessment Task 2: 25% 
    Linked CLOs: 3, 4

    Final Examination: 50% 
    Linked CLOs: 1, 2, 3, 4, 5

    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.