Course content

.

1.Introduction to microeconomic analysis

2.Consumer adaptation

• Budgetary condition and consumer preference scheme
• Effect of price and revenue changes
• Demand functions and elasticities
• Offers of work

4. Market theory

• Perfect competition
• How taxes and subsidies affect market equilibrium
• Market equilibrium and efficiency

5. Imperfect competition

• Monopoly
• Price discrimination
• Various forms of oligopoly/duopoly
• Games
• Other causes of imperfect competition
• Imperfect competition and efficiency

Learning outcome

Knowledge

You must be able to:

• Gain basic insight into the principles of microeconomic analysis and its applications in different markets.
• Gain knowledge about how companies and individuals face financial choices in a market economy.
• Know how the interaction between consumers and producers creates balance.
• Know how consumer demand is affected by prices and revenues.
• Have knowledge of how the company's supply and demand for input factors affect prices
• and income.
• Be able to show how the company's supply and its demand are affected by product and factor prices
• Know how the business community can utilize microeconomic knowledge

Skill

You must be able to:

• Describe how utility maximization can be used to divert demand for goods and services.
• Describe how the company's desire for maximum return or profit can be used to divert supply of goods and services in a market economy.
• Explain the difference between different market forms such as perfect competition, monopoly and oligopoly.
• Explain how prices and production volume are determined under different market conditions.
• Explain what is meant by efficiency in the economic sense, and make simple assessments of whether a market economy is efficient in the economic sense.
• Explain how different market interventions affect economic efficiency.
• Apply mathematical optimization of functions with one or more variables to basic economic optimization problems.
• Explain whether it is the producers or consumers who are charged a tax in a market.
• Apply knowledge from business economics in the analysis of, among other things, production theory and market economics
• Make visible the benefit the business community has of insight into microeconomics
• Understand the reasons for public intervention in the economy and analyze challenges related to the adjustments

General competence

You shall:

• Through this course develop a critical attitude to professional analysis.
• Stimulate to assess economic goals against other societal considerations.
• Be able to connect microeconomic theory to the individual business and sector
• Be able to link knowledge from other subjects in the bachelor's education such as business administration and marketing to the production of microeconomics

Learning methods and activities

Lectures

Exercises

Obligatory assignments:

Further information about obligatory assignments will be given at semester start.

Compulsory assignments

• Approved exercises

Specific conditions

Recommended previous knowledge

Mathematics for economists.

Course materials

Mandatory:

Pindyck, Rubinfeld og Synnestvedt: Introduksjon til Mikroøkonomi, Latest edition, Pearson.(English version of the book can be used)

Recommended:

Grønn, Erik: Mikroøkonomi på norsk. Cappelen Damm Akademisk.

Credit reductions