At the end of the course students should be able to understand the theory underlying the functioning of different market structures such as perfect competition, monopoly, oligopoly and monopolistic competition. The students must also be aware that of the relation between product markets and the factors’ markets. Finally, they must be able to identify the general equilibrium conditions of and economy and the optimum of Pareto, as well as the role left for government intervention and the problems arising from the existence of asymmetric information phenomena. The students must acquire a thorough knowledge of these topics making use of mathematical and graphical analyses.
I. Perfect Competition
III. Oligopoly and Game Theory
IV. Monopolistic competition
V. Factor Markets
VI. General Equilibrium and Pareto Optimum
VII. Externalities, Public Goods and Government Intervention
VIII. Information Economics: the asymmetric information problem
The teaching methodology focuses on the following three issues:
- detailed presentation of theory behind each of the topics with mathematical determination of the main results;
- resolution of numerical exercises after the theoretical exposition of each chapter. It consists of small exercises which help the student to better understand the different topics;
- Evaluation and discussion of specific situations gathered, for instance, from the news.
• MATEUS, Abel, MATEUS, Margarida, Microeconomia – Teoria e Aplicações - Volume II, Editorial Verbo, Fevereiro 2002.
• MATEUS, Abel, MATEUS, Margarida, Microeconomia – Exercícios e Estudos de Casos - Volume II, Editorial Verbo, Setembro 2002.
• VAR, Hal R., Intermediate Microeconomics: A Modern Approach, 7ª Edição (2006), W. W. Norton & Company.
• PINDYCH, Robert S., RUBINFELD, Daniel L., Microeconomics, 5ª Edição (2002), Prentice Hall.
• VAR, Hal R., Microeconomia – Princípios Básicos: Uma Abordagem Moderna, Tradução da 5ª Edição Americana, Editora Campus, 2000.