SØK 3520 Microeconomics
Through the study of microeconomics students will learn the fundamentals of how markets and economic institutions function.
The course is a thorough study on price formation and the production and income distribution in markets. The analysis covers both markets for consumer goods and markets for production resources. There is a special emphasis on the analysis of price trends and industry development in short and long term.
Furthermore, criteria for economic efficiency and high value added are discussed. In particular the course discusses if conditions for individual economic decisions are leading to effective utilisation of community resources. One sees here both the decisions in competitive markets and decisions in markets with limited competition.
During the course students will:
- Acquire understanding of the basic relationships between individual economic decisions and the social consequences in different market situations. Students will understand the basic principles of how changes in some markets have ripple effects to other markets.
- Understand the distinction between descriptive and normative theory.
After completed course students should be able to:
- Master the basic techniques of financial analysis: They should be able to master the basic economic model system, and understand the distinction between exogenous and endogenous variables.
- To formulate economic optimise problems and solve them analytically.
Students will be able to identify the welfare and distributional consequences of market processes. They will be encouraged to be aware of trade-offs between market efficiency and other considerations that are not captured by market analysis.
- Introduction to Microeconomic Analysis
- Market equilibrium: supply and demand
- Consumer Behaviour
- Budget constraint and consumer preferences
- Effects of price and income changes
- Demand functions and elasticities
- Firm behaviour
- Product function
- The cost function
- Profit maximisation
- The adjustment in the short and long term
- Market Theory
- Price formation under various cost structures
- Price and income generation in the short and long term
- Industrial dynamics
- The impact of excise taxes
- Economic efficiency
- Limited competition
- Monopolies and market power
- Game theory
The course consists of 36 lecture hours + 6 hours of plenary assignment review and feedback in plenary.
In course delivery as online courses, lecturer will, in collaboration with the student administration, organize an appropriate course implementation, combining different learning activities and digital elements on the learning platform. Online students are also offered a study guide that will contribute to progression and overview. Total recommended time spent for completing the course also applies here.
Higher Education Entrance Qualification.
MET 2910 Mathematics or equivalent
|Exam category||Weight||Invigilation||Duration||Support materials||Grouping||Comment exam|
Form of assessment:
Internal and external examiner
Examination every semester
|Form of assessment:||Written submission|
|Support materials:|| |
|Resit:||Examination every semester|
|Workload activity||Duration||Type of duration||Comment student effort|
|Review of assignments in plenary||6||Hour(s)|
|Prepare for teaching||42||Hour(s)|
|Group work / Assignments||55||Hour(s)||Working with tasks in the aftermath of lectures|
|Workload activity:||Review of assignments in plenary|
|Workload activity:||Prepare for teaching|
|Workload activity:||Group work / Assignments|
|Comment:||Working with tasks in the aftermath of lectures|
|Workload activity:||Self study|
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 7,5 ECTS credit corresponds to a workload of at least 200 hours.