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:
- Ferran Sancho Pifarré
- Email:
- ferran.sancho@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
Other comments on languages
Groups 1, 2, 51, 52 in Catalan; group 60 in Spanish; groups 04 and 08 in EnglishTeachers
- 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
- 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.
- Students must be capable of applying their knowledge to their work or vocation in a professional way and they should have building arguments and problem resolution skills within their area of study.
- Students must be capable of collecting and interpreting relevant data (usually within their area of study) in order to make statements that reflect social, scientific or ethical relevant issues.
- Students must be capable of communicating information, ideas, problems and solutions to both specialised and non-specialised audiences.
- Students must develop the necessary learning skills in order to undertake further training with a high degree of autonomy.
- Students must have and understand knowledge of an area of study built on the basis of general secondary education, and while it relies on some advanced textbooks it also includes some aspects coming from the forefront of its field of study.
- 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.
- 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.
- Students must be capable of applying their knowledge to their work or vocation in a professional way and they should have building arguments and problem resolution skills within their area of study.
- Students must be capable of collecting and interpreting relevant data (usually within their area of study) in order to make statements that reflect social, scientific or ethical relevant issues.
- Students must be capable of communicating information, ideas, problems and solutions to both specialised and non-specialised audiences.
- Students must develop the necessary learning skills in order to undertake further training with a high degree of autonomy.
- Students must have and understand knowledge of an area of study built on the basis of general secondary education, and while it relies on some advanced textbooks it also includes some aspects coming from the forefront of its field of study.
- 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)
Exclude the following sections: Example: The marginal curves of two factories; Cost curves in Internet auctions; Discrete values in plant size.
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)
Include simple numerical examples of price discimination with two types of consumers and two units per consumer (not in Varian).
Exclude section Two-part tariffs.
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 welfareeconomics (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.
- 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.
Annotation: Within the schedule set by the centre or degree programme, 15 minutes of one class will be reserved for students to evaluate their lecturers and their courses or modules through questionnaires.
Activities
| Title | Hours | ECTS | Learning Outcomes |
|---|---|---|---|
| Type: Directed | |||
| Exercises and group discussion | 17 | 0.68 | |
| Lectures | 32.5 | 1.3 | |
| Type: Supervised | |||
| Tutorials | 5 | 0.2 | |
| Type: Autonomous | |||
| Study, preparation and discussion of exercises | 77.5 | 3.1 | |
| Text reading | 13 | 0.52 |
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 at
https://eformularis.uab.cat/group/deganat_feie/nou-reprogramacio-de-proves
The teaching faculty will select the type of evaluation activity most suitable and efficient for the individual reprogrammed evaluation activity, including oral examinations.
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 timeof 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, 1, 5, 9, 8, 10, 11, 6, 7, 12, 21, 20, 19, 18, 16, 17, 13, 15, 14, 22 |
| Other evaluation exercises | 15 % | 1.5 | 0.06 | 3, 2, 4, 1, 5, 9, 8, 10, 11, 6, 7, 12, 21, 20, 19, 18, 16, 17, 15, 14, 22 |
| Partial examination | 35 % | 1.5 | 0.06 | 3, 2, 4, 1, 5, 9, 8, 10, 11, 6, 7, 12, 21, 20, 19, 18, 16, 17, 13, 15, 14, 22 |
Bibliography
Varian, H.. Intermediate microeconomics: a modern approach, W.W. Norton and Company Inc. , 9th edition.
Software
There is no need for any particular software.