040184 UK Microeconomics (2026S)

The lecture will be in class and in English.

i. Format:
There will be two lectures per week, plus a tutorial to discuss the weekly problem set. All course materials will be made available on Moodle.

ii. Content:
This is an introductory course in microeconomics. In the first part of the course, students are introduced to functioning of perfectly competitive markets. In the second part, we examine departures from the competitive market model, for example, market power, externalities, public goods, and asymmetric information. Finally, we discuss the role and scope of government intervention in markets. Basic mathematical knowledge is required (especially algebra, differential calculus, optimization without constraints).

iii. Objectives:
The course has the following learning objectives: (1) to introduce basic microeconomic principles, (2) to analyze the economic world using economic models, (3) to develop critical thinking.

Aim: Students will become familiar with the fundamentals of microeconomics and economic thinking. Upon successful completion, they will be able to identify different market forms (perfect competition, monopoly, oligopoly), perform equilibrium analysis in simple numerical examples, solve microeconomic optimization problems (utility and profit maximization under constraints), and apply comparative statics to elementary economic questions.

Content: The first half of the course covers the fundamentals of the ideal model of competitive markets in detail. Consumption and production theory, as well as the principle of utility and profit maximization are explained. The second part examines how real markets differ from this ideal, for example due to market power, the existence of external effects, public goods, or asymmetric information problems. Finally, the role of government intervention in markets is discussed. Basic mathematical knowledge is required (especially algebra, differential calculus, and optimization with constraints).

Method: There are two course units per week and a voluntary Q&A unit to discuss the exercises. The relevant course material, lecture notes, handouts, exercise sheets, and homework quizzes for these exercises are made available weekly on Moodle. These homework tests usually remain available for one week. By submitting them, students receive ongoing feedback on their progress. Students are expected to have access to a standard textbook and to complete the weekly reading assignments in advance to be able to actively participate in class.