• Understand and apply conceptually and analytically the basic concepts of microeconomics (e.g., the fundamental concepts in consumer theory, producer theory, game theory, and the theory of markets)
• Describe and rationalise the main assumptions behind simple economic models and analyze the role that those assumptions play.
• Use economic models graphically (diagrammatically) to analyze the effects of policy experiments (e.g. introducing taxes).
• Derive numerically economic instruments and apply them in analytical settings (e.g., find a price elasticity and use it to predict a change in demand).
• Analytically solve simple microeconomic problems (e.g., utility maximisation, profit maximisation, determination of equilibrium economic variables) and interpret these solutions.
• Use economic analysis to explain topical policy issues (e.g., How to reduce carbon emissions?).

Course content and structure
 

This course provides an introduction to the functioning of economic markets: it describes what lies behind the notions of demand and supply. Emphasis is placed on the behavioural assumptions that generate demand for particular products, and on whether the producers of a particular product compete in a perfect or an imperfect way. We also explore important extensions to the basic model such as uncertainty and symmetric information. The main blocks of the curriculum are:

• Supply and Demand
• Consumer theory: preferences, rationality assumptions, budgetary constraints
• Producer theory: production and costs functions
• Market structures: perfect competition, monopoly, oligopolistic competition, etc.
• Public goods and externalities 

Practical Application of Theory

In each main block the theory is exemplified with everyday problems and issues. We will consider economic models evaluating policies such as minimum wages and commodity taxation.

Relation to a Business or an Institutional Setting

We consider in depth how different market structures affect firms and consumers. We also emphasize how governments design institutions to correct market imperfections.

Relation to International Business or Economics

Several examples from the international business area are considered. Examples will be drawn particularly from U.S., Canada and Europe.

Research Based Teaching

Issues which are currently under debate in economic research are presented when relevant. In particular, we will discuss the limits of neoclassical models and how the research frontier confronts those limits.

“Microeconomics" by Richard Friberg (available freely online)