Microeconomics Study Material: Key Concepts & Market Structures Overview môn Kinh tế vi mô | Trường Đại học Kinh Tế Quốc Dân

Microeconomics Study Material
Chapter 1: Introduction to Microeconomics Definition:
Microeconomics is the branch of economics that studies the behavior of individual consumers, firms, and markets. Key Concepts:
Scarcity: Limited resources vs. unlimited wants.
Opportunity Cost: The next best alternative foregone.
Marginal Analysis: Examination of additional benefits vs. additional costs.
Chapter 2: Demand and Supply Demand
Law of Demand: Price ↑ → Quantity Demanded ↓ (ceteris paribus).
Determinants: Income, tastes, price of substitutes/complements, expectations. Elasticity of Demand: Price Elasticity: % Q Δ D / % P Δ Income Elasticity Cross-Price Elasticity Supply
Law of Supply: Price ↑ → Quantity Supplied ↑.
Determinants: Technology, input prices, taxes/subsidies, expectations. Equilibrium Occurs where QD = QS.
Graph: Intersection of Demand and Supply curves. Chapter 3: Elasticity Type Formula Interpretation Price Elasticity % Q Δ / % P Δ
>1: Elastic, <1: Inelastic Income Elasticity % Q Δ / % I Δ ncome >0: Normal good, <0: Inferior Cross-Price Elasticity % Q Δ x / Δ % Py >0: Substitutes, <0: Complements
Chapter 4: Consumer Theory
Utility: Satisfaction from consuming goods.
Total Utility (TU), Marginal Utility (MU) = T Δ U / Δ Q
Law of Diminishing Marginal Utility
Budget Constraint: Income limits choices.
Consumer Equilibrium: MUx/Px = MUy/Py
Chapter 5: Production and Costs Production Function Inputs → Outputs
Short Run: At least one fixed input.
Long Run: All inputs are variable. Costs Type Definition Fixed Cost (FC) Doesn’t change with output Variable Cost (VC) Changes with output Total Cost (TC) FC + VC Marginal Cost (MC) T Δ C / Δ Q Average Cost (AC) TC / Q
Chapter 6: Market Structures Market Type Features Examples Perfect Competition Many firms, identical Agriculture products Monopoly One firm, high barriers to Utilities entry Monopolistic Competition Many firms, product Restaurants differentiation Oligopoly Few large firms, Airlines, telecom interdependence
Chapter 7: Market Failures and Government Intervention Types of Market Failures:
Externalities (positive/negative) Public Goods Information Asymmetry Government Tools: Taxes/Subsidies Regulation Price ceilings/floors
Chapter 8: Factor Markets and Income Distribution
Labour Market: Wages determined by supply & demand.
Capital Market: Interest as the price of capital.
Marginal Productivity Theory: Factor paid its marginal product.
Chapter 9: Game Theory and Strategic Behavior Payoff Matrix Nash Equilibrium Prisoner’s Dilemma
Quick Tips for Studying Microeconomics
Draw graphs often to understand relationships.
Practice numerical problems, especially elasticity and costs.
Relate theories to real-life markets (e.g., why gas prices vary).
Review definitions and keep a glossary.
Use flashcards for key terms and formulas.