Microeconomics II
Code: 102336 ECTS Credits: 6| Degree | Type | Year | Semester |
|---|---|---|---|
| 2501572 Business Administration and Management | OB | 2 | 2 |
| 2501573 Economics | OB | 2 | 2 |
Contact
- Name:
- Pau Olivella Cunill
- Email:
- Pau.Olivella@uab.cat
Use of Languages
- Principal working language:
- spanish (spa)
- Some groups entirely in English:
- Yes
- Some groups entirely in Catalan:
- Yes
- Some groups entirely in Spanish:
- Yes
Teachers
- Inés Macho Stadler
- Ferran Armada Ramírez
- Katerina Chara Papioti
- Marc Puigmule Sola
- Ivanna Marinova Ferdinandova
External teachers
- Ausias Ribó
Prerequisites
It is recommended that students have already passed the following courses:
Introduction to Economics
Mathematics I and II
Microeconomics I
Objectives and Contextualisation
The aim of this courseis to understand the basic tools of microeconomic analysis and to become able to apply them.
The topics that will be covered inlcude:
Markets (competitive and monopolistic), equilibrium, welfare analysis.
Competences
- Business Administration and Management
- Capacity for adapting to changing environments.
- Capacity for independent learning in the future, gaining more profound knowledge of previous areas or learning new topics.
- Capacity for oral and written communication in Catalan, Spanish and English, which enables synthesis and oral and written presentation of the work carried out.
- Demonstrate initiative and work individually when the situation requires it.
- Identify the forces that govern demand and supply.
- Identify the processes that govern the functioning of markets in different competition regimes in different scenarios of interrelation and in different timeframes.
- Organise the work in terms of good time management, organisation and planning.
- Select and generate the information necessary for each problem, analyse it and take decisions based on that information.
- Show motivation for carrying out quality work and sensitivity to the consequences for the environment and society.
- Work well in a team, being able to argue proposals and validate or reject the arguments of others in a reasoned manner.
- Economics
- Apply mathematical instruments to synthesise complex economic-business situations.
- Capacity for adapting to changing environments.
- Capacity for independent learning in the future, gaining more profound knowledge of previous areas or learning new topics.
- Demonstrate initiative and work individually when the situation requires it.
- Identify the forces that govern demand and supply.
- Identify the processes that govern the operation of markets in different competition systems, different scenarios of interrelationship and different timescales.
- Organise the work in terms of good time management, organisation and planning.
- Select and generate the information necessary for each problem, analyse it and take decisions based on that information.
- Show motivation for carrying out quality work and sensitivity to the consequences for the environment and society.
- Work well in a team, being able to argue proposals and validate or reject the arguments of others in a reasoned manner.
Learning Outcomes
- A capacity of oral and written communication in Catalan, Spanish and English, which allows them to summarise and present the work conducted both orally and in writing.
- Analyze the determinants of demand.
- Analyze the determinants of supply.
- Associate the technological structure of the company cost structure and describe the processes of translation.
- Capacity to adapt to changing environments.
- Capacity to continue future learning independently, acquiring further knowledge and exploring new areas of knowledge.
- Demonstrate initiative and work independently when required.
- Demonstrate motivation regarding the quality of the work performed and sensitivity regarding the consequences on the environment and society.
- Differentiate between different market structures and analyze their effects on sales and corporate profits and consumer welfare.
- Differentiate the effects of balance in perfect and imperfect competition.
- Formulate and solve problems of general equilibrium and recognize interdependencies chains.
- Identify market failures and define the corrective mechanisms of public intervention.
- Organise work, in terms of good time management and organisation and planning.
- Recognize the role of uncertainty in the decision making of consumers and businesses.
- Select and generate the information needed for each problem, analyse it and make decisions based on this information.
- Solve balances and interpret its meaning.
- Weigh the impact of public sector on the activity of enterprises and consumers.
- Work as part of a team and be able to argue own proposals and validate or refuse the arguments of others in a reasonable manner.
Content
MICROECONOMICS II SYLLABUS
(Note: In each topic we indicate the corresponding chapter of the book “Intermediate Microeconomics”, 9th edition, see Bibliography)
Topic I: Cost curves (chap. 22)
Theme II: Competitive markets
II.1 The maximization of profit: the input demand functions and the supply function (chap. 20)
II.2 Profit Maximization and Cost Functions (Chap. 23)
II.3 Aggregate demand and supply and elasticities (chap. 15; chap. 24)
II.4 The equilibrium in the competitive market (chap. 16.1 to 16.5)
II.5 Consumer and producer surplus (chap. 14.1 to 14.7; 14.9 to 14.11)
II.6 The efficiency of the competitive market and the distorting role of taxes (chap. 16.6 to 16.9)
Topic III: Non-competitive markets: Monopoly
III.1 The maximization of profit (chap. 25)
III.2 Causes, efficiency and regulation of monopolies (chap. 25)
III.3 Price discrimination (chap. 26.1 to 26.4)
Theme IV: Imperfectly Competitive Markets: Oligopoly and Strategic Interactions
IV.1 The Cournot equilibrium (ch. 28)
IV.2 The Stackelberg equilibrium (ch. 28)
IV.3 Price competition and the Bertrand paradox (chap. 28.6)
Topic V. The general equilibrium model of pure exchange
V.1 Edgeworth box and the Walrasian equilibrium (ch. 32)
V.2 Efficient allocations in the Pareto sense and the two fundamental theorems of welfare economics (chap. 32)
Topic VI. Notions of the economics of information
VI. 1 Adverse selection and signaling (chap. 38.1 to 38.3, and 38.6)
VI.2 Moral hazard (chap. 38.4, 38.5 and 38.7)
Methodology
- For the groups taught in the 2nd semester(all except group 60 of ADE + Law)
- Teaching will be on campus.
- All the teaching material will be available exclusively in digital format in the Moodle classroom of the course
- The teaching methodology proposed may undergo some modification depending on the restrictions on attendance that the health authorities impose.
- For group 60 (ADE + Law), which is taught in the 1st semester
- Teaching will be offered on campus or in an on-campus and remote hybrid format depending on the number of students per group and the size of the rooms at 50% capacity.
- Part-time teaching (50%) means that there will be groups in which half of the students will attend the Faculty on alternate weeks.
- In this case, the face-to-face classes will focus primarily on problem solving.
- All teaching material will be available exclusively in digital format in the Moodle classroom of the course.
- The proposed teaching methodology may undergo some modifications according to the restrictions imposed by the health authorities on on-campus courses.
Activities
| Title | Hours | ECTS | Learning Outcomes |
|---|---|---|---|
| Type: Directed | |||
| Exercises and group discussion | 11.5 | 0.46 | 5, 1, 6, 7, 13, 15, 18 |
| Lectures | 33 | 1.32 | 1 |
| Type: Supervised | |||
| Tutorials | 5 | 0.2 | 5, 1, 6, 7, 8, 13, 15, 18 |
| Type: Autonomous | |||
| Study, preparation and discussion of exercises | 80.5 | 3.22 | 5, 1, 6, 7, 8, 13, 15, 18 |
| Text reading | 15 | 0.6 | 5, 1, 6, 7, 8, 13, 15, 18 |
Assessment
Evaluation process
The evaluation process will consist of a final examination with a weight of 50%, a partial examination, with a weight of 35% and, at least, an additional evaluation activity. At least part of any of the three (or more) evaluation activities must be of the written-exam type and at least part of any of the three (or more) evaluation activities must be multiple-choice type.
A student that takes part on any of the evaluation activities and turns in the activity for grading cannot be considered for a "Not Evaluable" status.
Schedule of evaluation activities
The dates of the different evaluation activities will be announced well in advance during the semester.
The date of the final exam is scheduled in the assessment calendar of the Faculty.
"The dates of evaluation activities cannot be modified, unless there is an exceptional and duly justified reason why an evaluation activity cannot be carried out. In this case, the degree coordinator will contact both the teaching staff and the affected student, and a new date will be scheduled within the same academic period to make up for the missed evaluation activity." Section 1 of Article 115. Calendar of evaluation activities (Academic Regulations UAB).
Students of the Faculty of Economics and Business, who in accordance with the previous paragraph need to change an evaluation activity date must process the request by filling out an Application for exams' reschedule https://eformularis.uab.cat/group/deganat_feie/application-for-exams-reschedule
Grade revision process
After all grading activities have ended, students will be informed of the date and way in which the course grades will be published. Students will be also be informed of the procedure, place, date and time of grade revision following University regulations.
Grade revision process
After all grading activities have ended, students will be informed of the date and way in which the course grades will be published. Students will also be informed of the procedure, place, date and time of grade revision following University regulations.
Retake Process
"To be eligible to participate in the retake process, it is required for students to have been previously been evaluated for at least two thirds of the total evaluation activities of the subject." Section 3 of Article 112 ter. The recovery (UAB Academic Regulations).
Additionally, for a student to participate in the retake process, it is required that he or she to have achieved an average grade of the subject between 3.5 and 4.9.
The date of the retake exam will be posted in the calendar of evaluation activities of the Faculty.
Students who take this exam and pass, will get a grade of 5 for the subject. If the student does not pass the retake, the grade will remain unchanged, and hence, student will fail the course.
The grading of the retake examination will be qualitative, with two possible results: “pass” or “no pass”. If the grade is “pass”, the grade will be equal to 5. If the grade is "no pass", the student will not pass the subject and his final grade will be the existing grade prior to the retake examination.
Irregularities in evaluation activities
In spite of other disciplinary measures deemed appropriate, and in accordance with current academic regulations, "in the case that the student makes any irregularity that could lead to a significant variation in the grade of an evaluation activity, it will be graded with a 0, regardless of the disciplinary process that can be instructed. In case of various irregularities occur in the evaluation of the same subject, the final grade of this subject will be 0". Section 10 ofArticle 116. Results of the evaluation. (UAB Academic Regulations).
Standards of behavior
Aside of any other disciplinary measures that are considered to be adequate, and in line with the current academic rules, the professor may reduce the average grade obtained in the "additional evaluation activities" by up to 2 points out of 10 to any student who repeatedly does not follow the rules of behavior in class. The professor will announce these rules at the beginning of the course.
The proposed evaluation activities may undergo some changes according to the restrictions imposed by the health authorities on on-campus courses.
Assessment Activities
| Title | Weighting | Hours | ECTS | Learning Outcomes |
|---|---|---|---|---|
| Final Exam | 50 % | 2 | 0.08 | 3, 2, 4, 5, 1, 6, 7, 10, 9, 11, 12, 8, 13, 17, 14, 16, 15, 18 |
| Other evaluation exercises | 20 per cent | 1.5 | 0.06 | 3, 2, 5, 1, 6, 7, 10, 9, 11, 12, 8, 13, 17, 16, 15, 18 |
| Partial examination | 30 per cent | 1.5 | 0.06 | 5, 1, 6, 7, 8, 13, 15, 18 |
Bibliography
Varian, H.. Intermediate microeconomics: a modern approach, W.W. Norton and Company Inc. , 9th edition.