Learning Outcomes
The purpose of the course is to give further insight into different theories and analytical methods within microeconomic theory and applied microeconomics. After completing the course the students should be able to:
- derive mathematically and graphically demand functions based on various utility functions. (1)
- describe production functions and derive mathematically and graphically various cost functions. (2)
- explain how the equilibrium level of prices and produced quantities are determined in a competitive market, monopoly and oligopoly. (3)
- describe consumer choice during uncertainty using the concept of expected utility. (4)
- derive mathematically various welfare measures such as consumer surplus, compensating variation and equivalent variation. (5)
- measure how demand responds to changes in its determinants using the elasticity concept. (6)
- describe how economic agents can interact strategically using basic game theory. (7)
- describe Pareto efficient allocations. (8)
- discuss the content of scientific articles in the field. (9)
- write academic essays in a structured and comprehensible manner. (10)
- present the essays orally. (11)
Course Content
The course starts with a discussion of different types of consumer preferences. The course also examines how different market mechanisms operate to allocate resources. The topics covered include utility maximization, demand and supply and market equilibrium, profit maximization, cost minimization, different forms of markets such as perfect competition, monopoly and oligopoly.
Assessment
The course is assessed through a written exam, 6 credits, and an assignment (academic writing and presentation in a seminar) 1.5 credits (U-G). The written exam examines learning outcomes 1 to 8 while the assignment examines learning outcomes 9 to 11. The assignment should follow the instructions for academic writing available on course’s homepage on Fronter.
Forms of Study
Lectures and seminars.
Grades
The Swedish grades U–VG.
Prerequisites
- Introductory Macroeconomics - Undergraduate Course, 7,5 credits
- Microeconomics - Undergraduate Course 7,5 credits
Other Information
The maximum numbers of exam occasions are five.
Replaces NA1009.
Literature
- Varian, H. R.. (2010) Intermediate microeconomics : a modern approach. 8 ed. New York : W.W. Norton. (739 p). ISBN 978-0-393-93533-2