Microeconomics for Business

Description

Microeconomics for Business is an introductory microeconomics course in the Bachelor of Business Administration. The aim of this course is to give students insight into how market economies function: what determines the price of a good and the quantities produced and consumed, how government policies and other external events affect prices and quantities, in which cases market outcomes are efficient and in which cases they are not. It will make students familiar with the characteristics of the main market types (perfect competition, monopoly, monopolistic competition and oligopoly), with pricing and production decisions in each market type, and with the desirability of government intervention in each market type. Students will also acquire some basic game theory tools. In this course, the following key objectives are (partially or fully) realized: Interprets and underpins behaviour of consumers based on economic concepts and theories. Describes and interprets the behaviour of consumers as a utility maximization problem. Using an economic framework, critically analyses the impact of various forms of government regulation on the most important market forms. Describes and analyses the different forms of non-market based government regulation (price regulation, output regulation) Describes and analyses the different forms of market based government intervention (taxes, subsidies) Analyzes the effects of government regulation in various  economic contexts (externalities, public goods, market concentration,  adjusting consumer- and producer behaviour). Defines, explains and uses, both graphically and model-based, micro-economic concepts. Calculates the market equilibrium, analyses changes in the market equilibrium and applies welfare analysis on an equilibrium outcome. Calculates and interprets the different forms of elasticities and uses them in the analysis of micro-economic problems. Describes the perspectives of economic science, uses them in a (business) economics context and reflects critically on them. Analyses price-setting and the various pricing strategies for the most important market forms. Recognizes and describes the most important market forms: perfect competition, monopoly, monopolistic competition and oligopoly. Analyses the pricing strategies of the most important market forms: perfect competition, monopoly, monopolistic competition and oligopoly, in the short term as well as in the long term. Analyses different forms of price discrimination. Analyses the different aspects of strategic behaviour for the market form oligopoly and applies game theory to analyze them. Interprets and underpins behaviour of producers based on economic concepts and theories. Describes and interprets the behaviour of producers as a profit maximization problem. Analyses the production process of firms in an economic context. Analyses the cost structure of firms in an economic context. Describes the perspectives of economic science, uses them in a (business) economics context and reflects critically on them. ERS Objectives: - Can collect and assess information regarding societal challenges from an appropriate theoretical framework.(ERS worldview) - Can handle change in an economic and business context. (ERS worldview) - Gaining insight and reflecting on the interrelationship between societal challenges and (business) economics (ERS worldview)