Microeconomics II

Objectives

The purpose of this course is to give students knowledge on intermediate microeconomics, following those acquired on Introduction to Microeconomics, in order to give them skills for the course of Microeconomics II. Students shall acquire theoretical, graphical and mathematical knowledge on economic agents and on the markets where they are integrated.

At the end, students shall understand the importance of the phenomena related to the main theoretical models used by economists to describe consumer’s behavior and the operation of the several market structures, as well as to submit, critically, the advantages and limitations of them. It is also intended that students may be able to solve problems, using mathematical formalism and to know how to frame and interpret specific situations within the models studied.

Students shall acquire the knowledge to enable them to rational decision-making, whether assuming the role of consumer, or the role of entrepreneurs.

Program

The contents taught in this course are divided into five distinct chapters.

CHAPTER I: Theory of the Consumer

1. The Market

2. Budget Constraint

3. Preferences

4. Utility

5. Choice

6. Demand

7. Consumer’s Surplus

8. Market Demand

CHAPTER II: Theory of the Producer

1. Technology

2. Cost Curves

3. Profit Maximization

4. Cost Minimization

CHAPTER III: Structures of Market

1. Firm Supply and Industry Supply

2. Monopoly

CHAPTER IV: The best of Pareto: Exchanges and Production

CHAPTER V: Externalities

Teaching Methodologies

Being a course with high theoretical and practical component, the methodology adopted is based on a presentation and explanation of all the programmed contents, followed by practical lessons for better understanding of the content displayed.

Bibliography

A bibliografia principal adotada nesta unidade curricular é a seguinte:

• Varian, Hal R., “Intermediate Microeconomics: A Modern Approach”, 8ª Edição (2010), W. W. Norton & Company.

• Mateus, Abel, Mateus, Margarida, “Microeconomia – Teoria e Aplicações - Volume II”, Editorial Verbo, fevereiro 2002.

Como bibliografia complementar:

• Pindych, Robert S., Rubinfeld, Daniel L., “Microeconomics”, 7ª Edição (2009), Prentice Hall.

• Varian, Hal R., “Microeconomia – Princípios Básicos: Uma Abordagem Moderna”, Tradução da 5ª Edição Americana, Editora Campus, 2000.

• Mateus, Abel, Mateus, Margarida, “Microeconomia – Teoria e Aplicações - Volume I”, Editorial Verbo, 2ª Edição, junho de 2008.