OVERVIEW

Microeconomics provides basics for understanding the functioning of the economic system. Particular attention is paid to the study of the behaviour of consumers and firms and the analysis of the role of the market in the resource allocation process.

AIMS AND CONTENT

LEARNING OUTCOMES

The course aims to provide the first elements for understanding the functioning of the economic system. Particular attention is paid to the study of the behavior of economic actors (consumers and firms) and the analysis of the role of the market in the resources allocation process.

AIMS AND LEARNING OUTCOMES

The expected learning outcomes at the end of the teaching unit are as follows:

• Knowledge and understanding: The student will be able to describe the main mechanisms of economic choice of agents (consumers, firms, State) in theoretical and applied contexts.
• Applying knowledge and understanding: The student will be able to apply the acquired knowledge to solve problems related to consumer spending decisions, firm production decisions, price formation in different market types, and the consequences for collective welfare, using data or examples provided during the exam.
• Making judgements: The student will be able to evaluate simple applied cases using the acquired knowledge, justifying their choices based on the theoretical models studied.
• Communication skills: The student will be able to use the technical language of microeconomics to communicate the concepts learned clearly and unambiguously, both in written and oral form, during the exam.
• Learning skills: The student will develop learning skills that allow them to independently deepen the acquired knowledge by consulting additional material indicated by the instructor.

PREREQUISITES

A basic understanding of the concept of mathematical functions, as well as the ability to solve simple linear equations and to reason abstractly are necessary for successful learning of the material covered in the course.

TEACHING METHODS

Frontal lectures.
Attendance is useful.
Any changes will be announced on Aulaweb.

Students who have valid certification of physical or learning disabilities  and who wish to discuss possible accommodations or other circumstances regarding lectures, coursework and exams, should speak both with the instructor and with Professor Elena Lagomarsino (elena.lagomarsino@unige.it), the Department’s disability liaison.

SYLLABUS/CONTENT

1. Fundamental questions of economic analysis. The evolution of economic thought. Comparative statics. Market demand and supply and their applications.
2. Consumer choices: price-consumption and income-consumption curves; individual and market demand. Elasticity and expenditure. Introduction to behavioural economics.
3. Firm choices: production function; product curves; isoquant map; marginal returns, returns to scale. Expansion path and costs in the short and long run, individual and market supply.
4. Factor demand and supply. Labour supply. Intertemporal choices and choices under uncertainty.
5. Perfectly competitive market and allocative efficiency. Public interventions in markets. General equilibrium and welfare.
6. Market power: monopoly, price discrimination, regulation of natural monopoly, monopolistic competition and duopoly (Cournot). Introduction to game theory. Collusion and prisoner’s dilemma; sequential games. Management theories. Oligopoly.
7. Market failure; asymmetric information (adverse selection and moral hazard), externalities, public goods.

RECOMMENDED READING/BIBLIOGRAPHY

Frank R H., Cartwright E., Microeconomics, eighth edition, McGraw-Hill, 2020.
Further teaching material provided during the lectures.

TEACHERS AND EXAM BOARD

LESSONS

LESSONS START

Lessons start: first Semester.
All class schedules are posted on the EasyAcademy portal.

EXAMS

EXAM DESCRIPTION

Written exam containing open questions and numerical/analytical exercises.
The structure of the exam and the weight of each part will be communicated on Aulaweb.
The exam program is the same for attending and non-attending students, as well as for Erasmus students or any other specific groups.

ASSESSMENT METHODS

Written exam.
The examination consists in open questions and numerical exercises.
In case of special requirements, students with disabilities and/or learning disabilities are requested to contact - at the beginning of the semester - the Student Disability Services and the teacher.

FURTHER INFORMATION

Additional Information for Non-Attending Students:
Attendance is recommended but not compulsory.
Registration in the Unige learning platform Aulaweb is recommended.