Microeconomics deals with the behaviour of individual economic units, such as consumers, workers, investors, owners of land and business firms. Microeconomics explains how these units make economic decisions. Another important concern of microeconomics is how these economic units interact in markets and in industries.
- Introduction to microeconomic analysis
- Demand, supply and market equilibrium
- Consumer behaviour
- The budget constraint and consumer preferences
- Effects of changes in price and income levels
- Demand functions and elasticities
- Firm behaviour
- Production theory
- The optimal use of input factors
- The cost of production
- The profit objective
- Market theory
- Perfect competition
- Effects of taxation
- Game theory
- Market forms and resource allocation.
Learning outcome knowledge
Students will be trained in the systematic analysis of consumer and firm behaviour in various market situations, and shall learn to understand the efficiency of resource use given different market forms (perfect competition, monopoly and monopolistic competition). The exam contains more formal optimization problems than is customary in a standard course at "principles" level at a US university.
- Written exam: 100%