Excerpt from course description

Microeconomics

Introduction

Through the study of microeconomics students will learn the fundamentals of how markets and economic institutions function.

The course is a thorough study on price formation and the production and income distribution in markets. The analysis covers both markets for consumer goods and markets for production resources. There is a special emphasis on the analysis of price trends and industry development in short and long term.

Furthermore, criteria for economic efficiency and high value added are discussed. In particular the course discusses if conditions for individual economic decisions are leading to effective utilisation of community resources. One sees here both the decisions in competitive markets and decisions in markets with limited competition.

Course content

  1. Introduction to Microeconomic Analysis
  2. Market equilibrium: supply and demand
  3. Consumer Behaviour
    • Budget constraint and consumer preferences
    • Effects of price and income changes
    • Demand functions and elasticities
  4. Firm behaviour
    • Product function
    • The cost function
    • Profit maximisation
    • Substitution
    • The adjustment in the short and long term
  5. Market Theory
    • Price formation under various cost structures
    • Price and income generation in the short and long term
    • Industrial dynamics
    • The impact of excise taxes
  6. Economic efficiency
  7. Limited competition
    • Monopolies and market power
    • Game theory

Disclaimer

This is an excerpt from the complete course description for the course. If you are an active student at BI, you can find the complete course descriptions with information on eg. learning goals, learning process, curriculum and exam at portal.bi.no. We reserve the right to make changes to this description.