APPLIES TO ACADEMIC YEAR 2014/2015

ELE 3713 Microeconomic Analysis

Responsible for the course
Christian Riis

Department
Department of Economics

Term
According to study plan

ECTS Credits
7,5

Language of instruction
Norwegian

Introduction
The main purpose of this course is to teach students the basic principles of market mechanisms and price formations in markets. The students will acquire knowledge about the economic principles behind exchange and transactions, price formations under supply and demand, implications of competition and market forces, price formations under different market mechanisms, in addition to the benefit function in the market.

Learning outcome
Acquired knowledge
The purpose of the course is to train students in systematic analysis of consumer and firm behaviour in various market situations, and to provide them with an understanding of the efficiency of the use of resources given different market forms (perfect competition, monopoly and monopolistic competition).

Acquired skills
On completion of this course students should be able to solve simple microeconomic optimization problems, and to understand the main principles of economic modelling.

Reflection
An aim of the course is to encourage students to reflect on and distinguish between the impact market changes have on efficiency versus their distributive effects, and to be conscious the distinction between efficiency goals and other considerations not covered by the market analysis.

Prerequisites
None specific.

Compulsory reading
Books:
Riis, Christian og Espen R. Moen. 2012. Moderne mikroøkonomi : med digital arbeidsbok. 2. utg. Gyldendal akademisk

Recommended reading

Course outline
Part 1 Introduction
- Introduction to price management
-Trade and Comparative Advantage

Part 2 Microeconomic principles for price decisions
- Thinking Like an Economist
- Supply and Demand: An Introduction
- Comparative Advantage: The Basis for Exchange
- Price in international markets

Part 3 Managers price decisions
- Elasticity
- Demand: The Benefit Side of the Market
- Perfectly Competitive Supply: The Cost Side of the Market
- Efficiency and Exchange
- The Quest for Profit and the Invisible Hand

Part 4 Market Imperfections
- Monopoly and Other Forms of Imperfect Competition
- Thinking Strategically
- The Economics of Information

Computer-based tools
No specified computer-based tools are required.

Learning process and workload
The course comprises 36 hours of teaching and 6 hours of review of exercises and discussions in class.

Three (3) compulsory assignments will be given during the course. Further information will be given in the lectures and through It's learning.

Recommended workload in hours: