The primary objective of this course is to enable students to understand how individual decision-makers make choices regarding the allocation of scarce resources by introducing them to the fundamental principles, concepts, and analytical tools of microeconomic theory. Accordingly, the course aims to cultivate individuals capable of analyzing—through graphical, mathematical, and logical models—the functioning of the market mechanism, the interaction of supply and demand, price elasticities, the utility theory underlying consumer preferences, firm production and cost structures, and profit-maximization strategies under various market conditions; and who possess the ability to interpret the theoretical knowledge they have acquired in the context of current economic policies and market interventions.

This course examines the behavior of individual decision-makers (consumers and firms)—which forms the foundation of microeconomic analysis—as well as the market mechanism and resource allocation processes, through theoretical, graphical, and analytical lenses. The course begins by addressing fundamental economic concepts, supply and demand theory, market equilibrium, government interventions in the price mechanism, and elasticity analysis. In the second part of the course, Utility Theory (covering both cardinal and ordinal approaches)—which explains consumer preferences—and the theories of short- and long-run production and cost—which underpin supply—are analyzed using analytical models. The course concludes with an analysis of firm profit maximization and pricing behaviors within the frameworks of perfect competition, monopoly, monopolistic competition, and oligopoly, conducting a comparative study through the lens of welfare economics.