How do markets allocate resources in an economy? How do firms operate in both the short run and the long run? What effect do taxes have on markets? What are the key rationales for governments to intervene in the economy? This class surveys microeconomic theory, with particular emphasis on principles most relevant for government and applications to policy or management. The first part of RPAD 503 explores markets and their efficiency at allocating resources – under perfect conditions. The second part of RPAD 503 explores the ways that markets can fail, and possible policies for solving these failures.
