Ateneo - UPO

The course is composed of a first part in which it is intended to resume the basic elements suitable for the understanding of the functioning of the economic system. Particular attention will be dedicated to the study of the behavior of economic actors (consumers and firms), the analysis of the role of the market in the process of allocation of resources, and to the different types of market forms. This first part will include the mathematical formulation of the concepts treated as well as a part consisting of several guided exercises. The second part will include insights and complements of game theory, externalities and public goods.

"Microeconomics" by R. Frank and E. Cartwright; Mc Graw Hill; VII ed. and following

The course aims to provide an intermediate preparation for the understanding of the functioning of the economic system, also through a more complete mathematical formalization. Students should acquire adequate knowledge and an effective ability to understand the main mechanisms of economic choice of agents (consumers, firms, state).

Basic knowledge of microeconomics as well as basic mathematical and quantitative methods for economics are assumed.

Frontal lessons and guided exercises. All lessons will be held in presence, except for specific cases communicated by the teacher.

Reception by appointment to be agreed by email.

Students with physical disabilities, Learning Disabilities or Special Education Needs can request specific services and tools via the Staff Sviluppo e Coordinamento Carriere e Servizi alle Studentesse e agli Studenti, consulting the University webpage: https://www.uniupo.it/en/services/servicesstudents-physical-or-learning-disabilities Students with disabilities, learning disabilities or special education needs, once they have contacted the University Staff, can refer to the tutor in charge of the course to define the examination modalities, concerning academic aspects.

This course is one module of a comprehensive exam called “Microeconomic Analysis.” The other module is called “Behavioral Economics” and is taught by Prof. Robone. Therefore, the exams for the two modules will be administered simultaneously (as a single exam) in the form of a single written exam. The average of the grades earned in the two modules will be recorded as “Microeconomic Analysis” (therefore, you must also register for the “Microeconomic Analysis” exam).

- Introduction to the course, cost-benefit analysis, opportunity costs, sunk costs.
- Consumption theory, budget constraint, consumer preferences, utility, optimal choice, demand, consumer surplus, elasticity, individual and market demand, supply, market demand and equilibrium, government intervention.
- Production theory, technology, profit maximization.
- Cost theory, cost minimization, cost curves, firm-level supply, industry-level supply.
- Perfect competition.
- Monopoly and monopolistic competition.
- Introduction to game theory and oligopoly theory.
- Externalities and public goods.
- Market failure; asymmetric information (adverse selection and moral hazard).

- Knowledge and understanding: Students must acquire adequate knowledge and an effective understanding of the main mechanisms underlying the economic choices made by economic agents (consumers, firms, and the government).
- Ability to apply knowledge and understanding: Students must be able to apply the knowledge they have acquired to understand and solve problems related to: 1) consumer spending decisions and firm production decisions; 2) using supply and demand to determine changes in market equilibrium and making decisions using marginal analysis as well as the concept of opportunity cost; 3) price formation in different types of markets; 4) the consequences of different types of markets on societal welfare; 5) understanding the implications for firm behavior regarding different market structures.
- Independent judgment: Students must be able to apply the knowledge they have acquired at a conceptual level to evaluate simple applied cases.
- Communication skills: Students must acquire the technical language typical of microeconomics to communicate the concepts they have learned clearly and unambiguously.
- Learning skills: Students must develop adequate learning skills that enable them to independently deepen their understanding of the knowledge acquired.