3034 Microeconomics: Theory and Application
Content
- Theories of consumer behavior: traditional and contemporary approach; static and dynamic analysis
- Production of homogeneous product versus optimal product assortment
- Classical versus managerial theories of firm
- Determination of price and quantity of production in different market situations
- Policies of pricing determination in reality
- Determination of prices in the market for factor inputs
- Risk analysis and decision-making under conditions of uncertainty
- Welfare economics, the theory of first and second-best solution
- General equilibrium: static and dynamic analysis
- Market weakness, market failures and measures of correction
Objectives and competences
Student:
- to enable students to reach a deeper understanding of the key concepts of microeconomic theory with emphasis on the policy of determining the equilibrium price and quantity of a short and long term, going from the output market to the input market, from the perfect to the imperfect market conditions burdened with numerous market weaknesses and shortcomings,
- to help students realize the importance, role and scope of microeconomic instruments in the analysis and in understanding the behavior of microeconomic entities in a constantly changing market environment,
- to indicate to students the complementary and compliant relationship of descriptive, geometric and mathematical dimension of microeconomics as a scientific discipline, and thus provide the scientific foundation and gradual introduction in an increasingly more rigorous analytical instruments,
- to provide students with the more complex forms of knowledge as to develop their economic intuition and critical distance for a deeper understanding and mastery of microeconomic models and problems,
- to provide students with a complete understanding of classical microeconomic theory, as well as the modern development of microeconomic theory and its application,
- to allow students to make a step from theoretical analysis to the application in real life, so they can see how in conditions of economic reality they make effective decisions based on economic theory.
Competences:
- to train students for a deeper and more complex microeconomic considerations and analyses,
- to train students to adopt complex microeconomic concepts and analytic instruments necessary for the understanding of economic processes,
- to train students for a critical approach in considering application of certain microeconomic concepts and models in solving problems of microeconomics,
- to develop students’ economic intuition and critical distance for a deeper understanding of microeconomic principles and events, not only at the theoretical level, in an ideal “laboratory conditions”, but in real-world conditions and practice of economic reality,
- to train students to apply the microeconomic theory on the business reality in the field of behavior both of consumer and producers, especially in determining the price and quantity of production, and decision-making under conditions of uncertainty.