040157 KU Microeconomics for Economics and Finance I (MA) (2021W)

Aims: The course provides advanced students with the core theoretical tools of microeconomic analysis with a focus on perfectly competitive markets. Upon successful completion students are able to work with the basic models of market competition, price determination, and welfare analysis. In simple theoretical examples, they are able to compute market equilibria and perform comparative statics. They are able to make a qualitative assessment of how different political interventions or parameter changes affect market outcomes. After an in-depth treatment of competitive markets, some properties of equilibrium with market power or strong externalities will also be explored.

Contents: preferences and utility, consumer's problem, indirect utility and expenditure, demand function, technology and production, cost functions, profit maximization, supply functions, partial equilibrium, efficiency and total surplus maximization, monopoly, general equilibrium, public goods and externalities.

Method: The news forum of the Moodle course provides regular information on the current learning goals and the development of the course. All materials, such as commented beamer presentations and solved problems, are made available on the platform. Every week course participants prepare and present exercises in the online sessions. In a final exam, students are expected to show integrated knowledge of the contents and materials presented in class and made available in the course platform.