Credit points: 15

Subject outline

In this subject, students will learn about optimisation theory and its application in economics. The main focus of the unit is on techniques for static optimisation. The types of problems to be addressed will include unconstrained optimisation, equality constrained optimisation, and inequality constrained optimisation. Optimisation problems in which there are both equality and inequality constraints might also be considered. Students will also learn about the comparative static properties of solutions to parametric optimisation problems. If time permits, an introduction to dynamic optimisation might also be provided. The emphasis throughout the course is on the application of these techniques to a variety of economic and business problems.

FacultyFaculty of Business, Economics and Law

Credit points15

Subject Co-ordinatorDamien Eldridge

Available to Study Abroad StudentsNo

Subject year levelYear Level 4 - UG/Hons/1st Yr PG

Exchange StudentsNo

Subject particulars

Subject rules

Prerequisites ECO2CFC and ECO2IQA (or equivalent maths subject)


Incompatible subjects ECO3AQA

Equivalent subjectsN/A

Special conditionsN/A

Learning resources


Resource TypeTitleResource RequirementAuthor and YearPublisher
ReadingsMathematics for economistsRecommendedSimon, CP and L Blume (1994)WW NORTON AND COMPANY, USA (ISBN: 0-393-95733-0)

Subject options

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Start date between: and    Key dates

Melbourne, 2014, Semester 1, Day


Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorDamien Eldridge

Class requirements

Lecture Week: 10 - 22
One 2.0 hours lecture per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

Tutorial Week: 10 - 22
One 1.0 hours tutorial per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.


Assessment elementComments%
One three hour final exam70
One two hour mid-semester exam30