APME22-Consumer and Producer Theory

Module Provider: Agr and Food Econ
Number of credits: 10 [5 ECTS credits]
Level:7
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites: Elementary mathematics plus introductory concepts in economics.
Co-requisites:
Modules excluded:
Current from: 2019/0

Email: garth.holloway@reading.ac.uk

Type of module:

Summary module description:
This module aims to present the neoclassical microeconomic theory of producers and consumers at an intermediate level. More generally, the module intends to develop the student's ability to use and interpret economic analysis in a critical manner.

Aims:
This module aims to present the neoclassical microeconomic theory of producers and consumers at an intermediate level. More generally, the module intends to develop the student's ability to use and interpret economic analysis in a critical manner.

Assessable learning outcomes:

• The student will be able to present the theory graphically, mathematically and in words. * The student will have the ability to solve simple problems in consumer and producer theory. * The student will be able to read and understand simple journal articles related to the topic. * The student will have the ability to evaluate critically results in consumption and production economics reported in the literature.

Additional outcomes:
The approach followed for this module is rigorous, relying on formal models taking a graphical or mathematical expression. The module will therefore develop the student's analytical and quantitative skills.

Outline content:
Consumer theory * Basic concepts: consumer preferences and budget set * The consumer's optimal choice and the derivation of individual demand functions * Properties of optimal demand functions: response to changes in income and prices, the Slutsky decomposition, the law of demand * Market demand * Econometric estimation of demand relationships * The measurement of consumer welfare * Additional topics: consumer behaviour under uncertainty; inter-temporal choice; the supply of labour Producer theory * Technology: representation, characterisation and evolution over time * The classical production function * Estimation of production relationships and measurement of technical efficiency * Profit maximisation and cost minimisation * Firm and industry supplies

Brief description of teaching and learning methods:
A two-hour lecture will be held every week, for which students will be required to undertake preparatory reading.

Summative assessment- Examinations:

Summative assessment- Coursework and in-class tests:
Coursework:
Students will be assessed through a mid-term and a final test each worth 50%
Relative percentage of coursework: 100%

Formative assessment methods:

Penalties for late submission:
Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information: http://www.reading.ac.uk/internal/exams/student/exa-guidePG.aspx

Assessment requirements for a pass:
50% overall.

Reassessment arrangements:
By coursework only.

Additional Costs (specified where applicable):
1) Required text books:
2) Specialist equipment or materials:
3) Specialist clothing, footwear or headgear:
4) Printing and binding:
5) Computers and devices with a particular specification:
6) Travel, accommodation and subsistence:

Last updated: 10 April 2019