ECON10004: pass the exams, not just read the notes
Your complete guide to University of Melbourne's introductory microeconomics unit. See where the marks are, work real practice questions, and study with an AI tutor that knows ECON10004.
Sia generates ECON10004 practice questions, walks through elasticities and government intervention step by step, and quizzes you on the material the exam weights most heavily.
Worked example
A single-price monopolist faces inverse demand P = 24 − 2Q and has total cost TC = Q² (so MC = 2Q). What price maximises profit?
Total revenue is TR = P × Q = (24 − 2Q)Q = 24Q − 2Q², so marginal revenue is MR = dTR/dQ = 24 − 4Q (same intercept as demand, twice the slope).
Set MR = MC for the profit-maximising quantity: 24 − 4Q = 2Q, so 24 = 6Q and Qm = 4.
Read the price off the demand curve at Qm = 4: P = 24 − 2(4) = 24 − 8 = 16, so the profit-maximising price is P = 16 (option index 2).
The trap: Setting P = MC (the competitive rule) gives 24 − 2Q = 2Q, so Q = 6 and P = 12. That is the efficient, zero-deadweight-loss outcome, not the monopolist's. A monopolist sets MR = MC, not P = MC, and prices above marginal cost. The Subject Guide flags exactly this: learn to set up and solve the profit-maximisation problem for the right market structure. classic slip!
One exam decides 50% of your grade. HURDLE: you must pass the final exam (at least 50%) to pass the subject; clearing the hurdle does not by itself guarantee a pass. This whole page is built around that.
Overview
What ECON10004 is, and where it sits
ECON10004 Introductory Microeconomics is the University of Melbourne's first-year economics gateway, run by the Department of Economics in the Faculty of Business and Economics and worth 12.5 credit points. It assumes no prior economics and builds one microeconomic toolkit from the ground up: demand and supply, market equilibrium and comparative statics, elasticity, consumer and producer surplus, the welfare effects of government policies (taxes, minimum wages, trade), market failures and externalities, firm costs and competitive supply, monopoly and price discrimination, oligopoly, and game theory.
The Subject Guide frames the semester in two halves. The first half (roughly Weeks 1 to 6) uses demand and supply models to evaluate the welfare effects of government policies such as taxes, minimum wages and trade liberalisation, then turns to market failures such as externalities, common resources and public goods. The second half (Weeks 7 to 12) evaluates the behaviour of firms: cost, technology and scale, firms in competitive markets, market power and monopoly, price discrimination, oligopoly, and finally game theory for analysing strategic interactions. The unit closes on simultaneous and sequential games.
Two features set ECON10004 apart from its lighter first-year cousins. It is genuinely calculus-flavoured rather than pure HSC algebra: the lectures derive marginal revenue and marginal cost as derivatives and solve profit-maximisation problems by differentiation, and the prescribed Casio FX82 is the only permitted calculator. And it carries a final-exam hurdle, so passing the subject requires passing the final on its own, not just clearing 50% on the weighted average. It is the assumed-knowledge foundation for Commerce and Economics majors across the Faculty.
Official outline: handbook.unimelb.edu.au · ECON10004 outline. Always treat the official outline and the exam timetable as authoritative.
Difficulty & time commitment
Is ECON10004 hard, and how much time does it take?
ECON10004 is manageable if you keep a weekly rhythm and treat the back half as the main event. Across student reviews the pattern is consistent: it starts gently and steepens, and the heaviest assessment is the part that separates grades.
The difficulty curve and the assessment weighting point the same way: the back half is harder and worth more. Front-loading effort there is the highest-return decision in the unit.
Is this unit for you
Who tends to do well, and who tends to struggle
You will likely do well if
- You are comfortable with algebra and basic differentiation: rearranging linear equations, solving two equations simultaneously, and taking the derivative of a total-revenue or total-cost function to get MR and MC.
- You redraw the core diagrams (demand and supply, the tax wedge and deadweight loss, the externality social-cost wedge, cost curves, and monopoly MR = MC) from blank axes until they are automatic.
- You attempt each week's tutorial tasks and pre-tutorial quiz by hand before class rather than only watching solutions, because Sections B and C of the exam look like the tutorial tasks.
- You treat the final exam as the main event and practise it timed, since it is 50% of the grade and a hurdle you must pass on its own.
You may struggle if
- You underestimate the algebra, as the Subject Guide warns: the calculus-based profit-maximisation setups catch out students who only memorise rules.
- You bank on the quizzes and participation (only 10% combined) and neglect the timed mid-semester test, assignment and final, which carry 90%.
- You leave the second half (costs, competitive firms, monopoly, price discrimination, oligopoly and game theory) to cram, even though it is the heavier and more algebraic block.
- You forget the final-exam hurdle and could pass on average while failing the final, which fails the whole subject.
- Master the first-half toolkit early (elasticity, surplus, tax incidence and deadweight loss, externalities) so the heavier firm-behaviour block has a foundation.
- Re-derive every result rather than memorising it: MR = a − 2bQ from TR by differentiation, MC from TC, the shut-down and exit rules, the DWL triangle, and the Nash equilibrium of a payoff matrix.
- Drill past and practice exams timed under the 100-mark, three-section format, allocating roughly one minute per mark, and write Sections B and C with fully labelled diagrams.
- Keep one page of diagrams and formulas (demand and supply, the tax and externality wedges, cost curves, monopoly MR = MC and DWL, and the simultaneous and sequential game tools) and rehearse reproducing each from scratch.
Syllabus
The 12 topics, week by week
The exam-weight marker on each topic shows where the marks concentrate. The amber topics carry the highest exam weight.
T1 · The economic way of thinking and introduction to microeconomics
GKBM Ch 1 to 3Scarcity, opportunity cost and trade-offs, thinking at the margin, and how stylised economic models generate insight into real social problems.
T2 · Supply and demand, equilibrium and comparative statics
GKBM Ch 4Building market demand and supply, the determinants that shift each curve, market equilibrium, and tracing how equilibrium price and quantity move under shocks.
T3 · Elasticities and welfare in perfectly competitive markets
GKBM Ch 5 & 7Price, cross-price and income elasticity and the total-revenue test, then consumer surplus, producer surplus and total surplus as the welfare measure in a competitive market.
T4 · Government intervention
GKBM Ch 6 & 8Price ceilings and floors (rent control, minimum wage), tax and subsidy incidence, the deadweight loss of a tax, and who really bears the burden on each side of the market.
T5 · International trade and market failures: externalities
GKBM Ch 9 & 10Gains from trade, tariffs and the welfare of trade liberalisation, then negative and positive externalities, the social-cost wedge and the Pigouvian corrective tax.
T6 · Common resources and public goods (Mid-semester test week)
GKBM Ch 11Rival and excludable goods, the four-way classification, the tragedy of the commons, and why public goods are under-provided by the market. The 25% mid-semester test is held this week.
T7 · Firm decisions: cost, technology and scale
GKBM Ch 13The short-run cost curves (TC, FC, VC, MC, AFC, AVC, ATC), marginal cost as a derivative of total cost, and economies and diseconomies of scale in the long run.
T8 · Firms in competitive markets: short- and long-run supply
GKBM Ch 14The price-taking firm and the P = MC rule, the shut-down (P < AVC) versus exit (P < ATC) decisions, and entry driving long-run economic profit to zero.
T9 · Market power and monopolies (Assignment due)
GKBM Ch 15The single-price monopolist, marginal revenue below price, the MR = MC rule then reading the price off demand, monopoly profit and the deadweight loss of restricted output. The 15% group assignment is due this week.
T10 · Price discrimination and introduction to oligopoly
GKBM Ch 15 & 17First, second and third-degree price discrimination and how it captures surplus, then oligopoly: a few interdependent firms whose pricing and output decisions depend on rivals.
T11 · Introduction to game theory: simultaneous games
DSM Ch 4Payoff matrices, dominant and dominated strategies, Nash equilibrium and the prisoner's dilemma applied to oligopoly pricing and entry.
T12 · Sequential games
DSM Ch 3Game trees, backward induction, subgame-perfect equilibrium, and credible versus incredible threats in sequential strategic interaction.
How it's assessed
Assessment structure
| Component | Weight | Format & timing |
|---|---|---|
| Pre-tutorial quizzes | 5% | Weekly multiple-choice quizzes on the LMS (Canvas), covering the previous week's lecture material; two attempts each, unlimited time per attempt. Each week from Weeks 2 to 12, due Sunday 23:59 before the tutorial. Best 9 of 11 quizzes count, so the two weakest are dropped. |
| Tutorial participation | 5% | Tutor-assigned marks for attendance and the frequency, relevance and logic of contributions; requires a valid tutorial enrolment. Each week. Best 10 of 12 tutorials count. |
| Mid-semester test | 25% | Timed test on the material taught up to that point; Casio FX82 permitted. Held in the mid-semester test week (S1 2026: Monday 13 April, time to be confirmed). Covers the first half of the subject (demand and supply through to market failures). |
| Assignment | 15% | Group written assignment of up to 1000 words (groups of at most two, submitted via Turnitin); apply economic concepts to the material taught up to that point. S1 2026: Wednesday 6 May, 3pm; no late submissions and no extensions. Material beyond 1000 words is disregarded; no two groups may submit the same work. |
| End-of-semester exam | 50% | In-person exam, 15 minutes reading plus 120 minutes writing, 100 marks across three sections: Section A 10 MCQ (2 marks each), Section B 2 short questions (40 marks), Section C 2 long questions (40 marks); Casio FX82 and a foreign-language dictionary permitted. During the end-of-semester examination period. HURDLE: you must pass the final exam (at least 50%) to pass the subject; clearing the hurdle does not by itself guarantee a pass. |
- Pass on a weighted average of at least 50% AND pass the final exam (the final-exam hurdle): you must score at least 50% on the end-of-semester exam to pass the subject, regardless of your other marks.
- End-of-semester exam: Section A is 10 multiple-choice questions (20 marks), Section B is 2 short questions (40 marks) and Section C is 2 long questions (40 marks), for 100 marks. Section A resembles the weekly quizzes; Sections B and C look like the tutorial tasks, so practise the full diagram-and-algebra working, not just picking a letter.
- Calculator policy: The only University-approved calculator is the Casio FX82 (any suffix, but not the FX8200). You must supply your own and ensure it works with fresh batteries.
This is an exam-cram unit. With the exams at 75% of the grade and the end-of-semester exam alone at 50%, your result is overwhelmingly decided by how well you perform under time pressure. HURDLE: you must pass the final exam (at least 50%) to pass the subject; clearing the hurdle does not by itself guarantee a pass.
Final exam timing: approx mid-Nov 2026 (estimated S2 2026 window; the S1 2026 final was 10 June 2026, so confirm the current offering and date against the official University of Melbourne exam timetable). Confirm the exact date and venue on the official exam timetable.
How to actually pass it
A weekly rhythm, two checklists, and the traps to avoid
The unit rewards consistency over cramming, and practice over re-reading. Here is the loop that works, then what to have nailed before each exam.
The weekly loop
Before the mid-semester checklist
- Drill the first-half topics (demand and supply, elasticity and the total-revenue test, consumer and producer surplus, tax incidence and deadweight loss, externalities) under timed closed-book conditions with only a Casio FX82.
- Practise the welfare-area geometry (consumer surplus, producer surplus, the tax wedge and the deadweight-loss triangle) until you can draw and compute it quickly.
- Rehearse point and arc elasticity and the total-revenue test, since they recur throughout the subject.
- Do the early pre-tutorial quizzes seriously to calibrate before the 25% mid-semester test.
Before the final heaviest topics
- Prioritise the second half (cost curves, competitive supply, monopoly and price discrimination, oligopoly, and simultaneous and sequential games), because it is the heavier and more algebraic block.
- Work past and practice exams timed under the 100-mark, three-section format (Section A MCQ, Section B short, Section C long), checking method not just the answer key.
- Drill the monopoly chain end to end: TR and MR by differentiation, MR = MC for Qm, read P off demand, then profit and the deadweight loss.
- Practise game theory fast: dominant strategies and Nash for simultaneous games, and backward induction and subgame-perfect equilibrium for sequential games.
- Remember the hurdle: the final must clear 50% on its own, so simulate full exam conditions, not just topic-by-topic practice.
The mistakes that cost marks
Using P = MC for a monopolist. The competitive rule P = MC gives the efficient outcome, not the monopolist's. A monopolist sets MR = MC, finds Qm, then reads the price off demand. This single confusion cascades into the wrong price, profit and deadweight loss, and the Subject Guide flags profit-maximisation setups as a place students lose marks.
Underestimating the algebra. ECON10004 uses calculus to derive MR and MC and to solve profit-maximisation, not just school algebra. Students who memorise rules instead of being able to re-derive them under exam pressure get caught when the numbers change.
Chasing quiz and participation marks. The pre-tutorial quizzes and tutorial participation are only 10% combined (and each is best-of, so the floor is cushioned). The mid-semester test, assignment and final are 90%. Polishing the small components while neglecting timed exam practice misreads where the grade is.
Forgetting the final-exam hurdle. You must pass the final exam on its own to pass the subject. It is possible to clear a 50% weighted average and still fail because the final fell short, so the final has to be the centre of your revision, not an afterthought.
Teaching team
Who teaches ECON10004
The bios below are factual. The star ratings are not ours: they are impressions from students who have taken the unit, so you can hear from people who sat in the lectures.
Reshad Ahsan
Lectures the firm-behaviour half of ECON10004 (cost and scale, competitive markets, monopoly and price discrimination) in the Department of Economics, Faculty of Business and Economics, University of Melbourne, and leads the subject team that prepared the Subject Guide.
Laura Panza
Lectures the government-intervention, international-trade and market-failure material in the Department of Economics, University of Melbourne.
Eik Swee
Lectures the introduction, supply and demand, and game-theory material in the Department of Economics, University of Melbourne.
Nahid Khan
Coordinates the tutorial program and tutor team for ECON10004 in the Department of Economics, University of Melbourne, and is the contact for tutorial enrolment and participation marks.
Teaching team as listed in the unit materials reviewed. AskSia does not rate lecturers; star ratings are submitted by students who have taken ECON10004.
Where it fits
Prerequisites, related units & why it matters
No formal prerequisites; ECON10004 assumes no prior economics and is a gateway first-year subject. Comfort with school-level algebra and basic differentiation helps, because the unit derives marginal quantities as derivatives. Check the handbook for any prohibited combinations with cognate first-year economics subjects.
Your ECON10004 study toolkit
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FAQ
Frequently asked questions
Is ECON10004 hard?
It is moderate for a first-year subject, a touch harder than the lightest intro-economics units for two reasons. The Subject Guide warns 'do not underestimate the algebra' and the unit uses calculus (marginal revenue and marginal cost as derivatives) rather than pure school algebra. And it carries a final-exam hurdle, so you must pass the final on its own. With consistent weekly practice on the diagrams and the profit-maximisation algebra it is very manageable.
How is ECON10004 assessed?
Pre-tutorial quizzes worth 5% (best 9 of 11 count), tutorial participation worth 5% (best 10 of 12), a 25% mid-semester test, a 15% group written assignment (up to 1000 words, groups of at most two), and a 50% end-of-semester exam. You pass on a weighted average of at least 50% AND by passing the final exam, which is a hurdle.
What is the final exam format?
An in-person exam with 15 minutes reading plus 120 minutes writing, worth 100 marks across three sections: Section A is 10 multiple-choice questions (2 marks each), Section B is 2 short questions (40 marks total) and Section C is 2 long questions (40 marks total). Section A resembles the weekly quizzes and Sections B and C look like the tutorial tasks. The Casio FX82 is the only permitted calculator.
What is the final-exam hurdle?
To pass ECON10004 you must score at least 50% on the end-of-semester exam, on top of a 50% weighted average overall. If you fail the final you fail the subject, even if your quizzes, assignment and mid-semester test would otherwise lift your total to a pass. This is why exam practice under timed conditions matters more here than the quiz marks.
How much maths is involved?
More than the lightest intro units: as well as linear demand and supply algebra, elasticity and deadweight-loss calculations, the subject uses basic differentiation to derive marginal revenue and marginal cost and to solve profit-maximisation problems. The Subject Guide explicitly tells students not to underestimate the algebra. A Casio FX82 is permitted in the exams.
Which textbook do I need?
The prescribed text is Principles of Microeconomics, 9th Asia-Pacific edition, by Gans, King, Byford and Mankiw (known as GKBM). The game-theory lectures draw on selected chapters of Games of Strategy, 5th edition, by Dixit, Skeath and McAdams (DSM), provided through Readings Online. Any edition of GKBM can be used, though chapter numbers may differ between editions.
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