Microeconomics

Subject

1. Consumer Choice (Utility Theory, Consumer Equilibrium, Demand, Economic Behaviour)
2. Analysis of Income constraint and indifference curves (The construction of the indifference curve, combining the indifference curve map and the income constraint, from indifference curves on the demand curve)
3. Production and Costs (Profit Maximization, Production, Production Cost, Production and Cost in the Long Term Period, Shifts in Cost Curves)
4. Perfect Competition (Theory of Perfect Competition, Perfect Competition in the Short Term Period, Perfect Competition in the Long Term Period, and Issues for Analysis in Perfect Competition)
5. Monopoly (Monopoly theory, Monopoly price policy and decisions on production scale, Perfect competition and monopoly, Arguments against the monopoly, Price discrimination policy)
6. Monopolistic Competition, Oligopoly and Game Theory (The theory of monopolistic competition, Oligopoly: Assumptions and behaviour in the real world, Price and the level of production in three oligopoly theories, Game Theory, oligopoly and demanding markets, Applications of game theory)
7. Markets of Factors’ of Production Focusing on the Labour Market (The Demand curve of factor of production, Marginal Product Income, Marginal Cost of Productivity, The Demand curve of factor of production)
8. Income Distribution (Neoclassical Income Distribution Theory)

Educational Aims

The course introduces students to the concepts of utility theory, consumer balance, indifference curves, production and cost. It then examines the characteristics of the markets in which businesses operate and deals with the pricing of goods on different markets (Perfect Competition, Monopoly, Monopoly Competition, and Oligopoly). It also deals with the determination of factor prices and the income distribution between producers of factors of production. Lastly, emphasis is given on the structure and functioning of the labour market.

At the end of this course the students shouldbe able to:

• Critically approach issues related to Microeconomic Analysis and concern the Management of Businesses.
• Understand the different types of markets structures in which businesses operate and their differences.
• Understand the functioning and the structure of the markets of production factors giving more emphasis to the labour market.
• Be aware of the basic neoclassical income distribution theory.
• Be able to apply basic mathematical principles and methods to solve business problems under the microeconomic analysis.

In addition, withinthe workshop, exercises are solved so that the students gain essential skills and more flexibility in dealing with theoretical and practical problems of microeconomic analysis.

Student Evaluation

Written examination aftertheend of the semester (100%) including:

• QuickQuestions,
• TestDevelopment Questions,
• Problemsolving

Bibliography