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Economics of Industry

The economics of industry is concerned with the behaviour of firms. This topic covers both theory and applications. The objectives of this topic are to provide an understanding of:

  1. the theoretical foundations of firm decisions regarding pricing, product differentiation, advertising, entry, mergers and takeovers, innovation, vertical integration, and organization

  2. the welfare implications of firm behaviour

  3. strategic firm behaviour, its effects on other firms

  4. inappropriate firm behaviour and the design of public policy responses

  5. methods of determining and analysing firm behaviour through the use of data