Microeconomics I

Objectives

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.

Program

1. Consumer Theory

2. Production Theory

3. Market Structures

4. Pareto Optimum: Trade and Production

5. Externalities

Teaching Methodologies

The teaching methodology focuses on the following three issues: a) detailed presentation of theory behind each of the topics with mathematical determination of the main results b) resolution of numerical exercises after the theoretical exposition of each chapter and c) evaluation and discussion of specific situations gathered, for instance, from the media or scientific papers.

Bibliography

Mateus, A. & Mateus, M. (2002). Microeconomia Teoria e Aplicações (Vol. I). Lisboa: Editorial Verbo.

Mateus, A. & Mateus, M. (2002). Microeconomia Teoria e Aplicações (Vol. II). Lisboa:  Editorial Verbo.

Pindyck, R. & Rubinfeld, D. (2018). Microeconomics. New York: Pearson.

Varian, H. R. (2014). Intermediate Microeconomics: A Modern Approach. New York: W. W. Norton & Company (International Student Edition).

Varian, H. R. (2000). Microeconomia – Princípios Básicos: Uma Abordagem Moderna. Lisboa: Edição Editora Campus.

Other elements provided to the students through moodle.