Microeconomics I

COURSE OBJECTIVE
You will study the basic concepts of microeconomics concerning consumer and producer behavior is market equilibrium. You will develop skills to apply the relevant microeconomic theories to current economic concerns (Academic Skills). Therefore, the following goals are important:
- you obtain basic knowledge on how individuals consumers and producers should act to maximize utility and profit (Course Knowledge);
- you obtain insight in how equilibrium quantities and prices are determined in different market structures such as competition, monopoly and oligopoly (Course Knowledge and Quantitative Skills);
- you learn how to apply a welfare analysis on the benefits and restrictions of the different market structures and the impacts of external influences (Course Knowledge and Quantitative Skills);
- you obtain insight in the policy instruments of governments to interfere in case of market failure (Link to Practice);
- you learn about auction mechanisms and the impact of uncertainty of consumer behavior (Link to Practice).

COURSE CONTENT
This course considers rational consumers and producers, that maximize under some conditions their utility and profits, respectively. This paradigm is used to derive supply and demand curves, which are used to analyse market equilibrium. Within different market structures (competition, monopoly, oligopoly) the price setting in equilibrium is studied. Also settings are considered where markets fails. In addition, attention is devoted to uncertainty, auctions, market power and the role of the government.

TEACHING METHODS
Main classes. Workgroups.

TYPE OF ASSESSMENT
Exam - individual grading. Midterm exams - individual grading.

RECOMMENDED BACKGROUND KNOWLEDGE
Quantitative Research Methods I