Microeconomics II

Year
1
Academic year
2019-2020
Code
01620393
Subject Area
Economics
Language of Instruction
Portuguese
Mode of Delivery
Face-to-face
Duration
SEMESTRIAL
ECTS Credits
6.0
Type
Compulsory
Level
1st Cycle Studies

Recommended Prerequisites

Microeconomics I and Calculus I.

Teaching Methods

The lectures are organized in theoretical and practical classes. In the former, the theoretical contents are exposed, stimulating the discussion of their importance and validity, using slides (powerpoint presentations). In the latter, we apply the theoretical knowledge to solve (real and/or simulated) practical problems and to interpret economically their solutions.

Learning Outcomes

Overall objectives

To give students a thorough understanding of the principles of economics that explain the behaviours of individual decision makers, within the economic system.

Specific objectives

• To understand the implications of economic concepts on the economic agent behaviour.

• To know and understand: how consumers and producers establish their decisions, identifying their impact on wellbeing; the role of markets in allocating scarce resources and price formation; and the impact of government intervention in the market.

• To compare different market structures.

Competencies

Students should developed the following competencies:

• Capacity of analysis and synthesis, of writing and speaking, about individual economic agents behaviour;

• Establish, critically and wisely, the relationship between the concepts and models presented and actual economic unit’s activity;

• Apply appropriate mathematical techniques to solve real and/or simulated problems

Work Placement(s)

No

Syllabus

1. Demand, supply and market equilibrium

 1.1 Demand

 1.2 Supply

 1.3 Aggregate curves

 1.4 Market equilibrium

 1.5 State intervention: taxes and subsidies

2. Consumer theory

 2.1 Consumer preferences

 2.2 Utility function

 2.3 Budget constraint

 2.4 Optimal Choice. Ordinary (or Marshallian) demand function

 2.5 Income Offer Curve and Engel Curves. Price Offer Curves

 2.6 Substitution effect and income effect

 2.7 Compensated (or Hicksian) demand function

3. Producer theory

 3.1 Technology constraints. Isoquants

 3.2 Production function. Total, average and marginal product. Returns to scale

 3.3 Profit maximization

 3.4 Cost minimization

 3.5 Cost Curves

4. Market Structures

 4.1 Pure Competition

 4.2 Monopoly

 4.3 Strategic behaviour

  4.3.1 Game Theory: the Prisoner's dilemma; dominant strategy; Nash equilibrium

Head Lecturer(s)

Luís Miguel Guilherme Cruz

Assessment Methods

Continuous Assessment
Continuous evaluation (midterm exam 50+50): 100.0%

Final Assessment
Exam: 100.0%

Bibliography

VARIAN, Hal R. - Intermediate microeconomics : a modern approach. 8th ed.. New York : W. W. Norton & Company, 2010. [BP 330.101.542 VAR]

VARIAN, Hal R. - Microeconomia intermédia : uma abordagem moderna. 8ª ed., Lisboa : Verlag Dashöfer, 2011. [BP 330.101.542 VAR]