Microeconomics

Objectives

This course aims to familiarize students with the main problems studied by Microeconomics. It is intended that students have a basic understanding of the behavior of individual consumers and firms, as well as the operation of various types of markets and the effects and reasons for state intervention.

General characterization

Code

10862

Credits

3.0

Responsible teacher

Duarte Miguel Machado Carneiro de Brito

Hours

Weekly - 2

Total - 28

Teaching language

Português

Prerequisites

No prior knowledge of Economics required.

Bibliography

Mata, José, 2000, Economia da Empresa, F. Calouste Gulbenkian, Lisboa.

Samuelson, Paul e W. Nordhaus, 2005, Microeconomia, 18ª Edição, McGraw-Hill.

Frank, Robert, 2003, Microeconomics and Behavior, 5ª Edição, McGraw-Hill.

Varian, H., 2009, Intermediate Microeconomics, W. W. Norton & Company

Henriques, D. e Teresa Vasconcelos e Sousa, 2011, Introdução à Microeconomia - Livro de Exercícios, Escolar Editora.

Teaching method

Theoretical lessons presented by the instructor, followed by the resolution of practical exercises.

Evaluation method

The evaluation is made up of 2 midterm tests with an equal duration and weight on the final grade.

Subject matter

1. Presentation and motivation.
2. Modeling the functioning of markets: Determinants of demand and supply of a good. Elasticities. Welfare. Market Equilibrium. State intervention in markets: Taxes, subsidies, price controls.
3. From the consumer theory to the demand function: budget constraint, preferences, utility and optimal choice. 4. From the theory of firm to the supply function: production function and cost curves for short and long term.
5.The model of Perfect Competition. Balancing short and long term. Market equilibrium and efficiency.
6. Monopoly theory. Effects on welfare. Monopoly and price discrimination.
7. Main market failures. Public goods. Externalities.
8. Game theory and oligopoly: simultaneous and sequential games. Models of competition in quantities.