3.1 The Firm: Objectives, Costs and Revenues
The Objectives of Firms
The Divorce of Ownership from Control
The Law of Diminishing (Marginal) Returns
Returns to Scale
Fixed and Variable Costs, Total Costs, Short-run and Long-run Costs
Marginal and Average Costs
Economies and Diseconomies of Scale
Technological Change
Total, Average and Marginal Revenue

3.2 Competitive Markets
The Model of Perfect Competition
Competition and the Efficient Allocation of Resources
The Dynamics of Competition
Monopoly and Oligopoly
Price Makers and Price Takers
The Growth of Firms
Sources of Monopoly Power
The Model of Monopoly

Collusive and Non-Collusive Oligopoly
Consumer and Producer Surplus
Price Discrimination
Contestable and Non- contestable Markets
Market Structure
Market Failure and Government Failure
public goods
Carbon trading
Competition Policy
Cost Benefit Analysis
Public Ownership, Privatisation
Marginal Productivity Theory
Supply of Labour to Different Markets
Relative Wage Rates
The Determination of Relative Wage Rates
The Influence of Trade Unions
National Minimum Wage Rate
Discrimination in the Labour Market
The Distribution of Income and Wealth
Notions of Equity
The Problem of Poverty
Government Policies to Alleviate Poverty