37293 - Microeconomics

Learning outcomes

At the end of the course students with understands of the principles of micro-economic analysis. They have been introduced the concept of economic rationality as it applies to individuals and firms, and the analysis of how price and quantity are set under different market structures. Moreover students are introduced to topics addressed in more detail will include the form of utility and production functions, and rational decision making and intertemporal choice in the face of uncertainty. Implications for the behaviour and organization of firms will be highlighted throughout.

Course contents

Note: the course is in English

1. Introduction to the concepts of market and economic rationality (Lecturer: Enrico Cantoni) – chapter 1 of the textbook
2. Consumer Theory (Lecturer: Enrico Cantoni)

   - The budget constraint – chapter 2
   - Preferences and utility functions – chapters 3 and 4
   - Choice – chapter 5
   - Individual demand (for goods and services) – chapter 6
   - Slutsky decomposition – chapter 8, which implicitly requires the basic understanding of chapter 7 (“Revealed Preference”)
   - Labor supply – chapter 9

3. Market equilibrium (Lecturer: Enrico Cantoni)
   - Market demand and elasticity – chapter 15
   - Market equilibrium and the implications of taxes on consumption – chapter 16
4. Producer Theory (Lecturer: Stephanie Heger)
   - Technology – chapter 19
   - Profit maximization – chapter 20

   - Cost minimization – chapter 21
   - Cost curves – chapter 22
   - Firm supply in a competitive market – chapter 23
   - Industry supply in a competitive market – chapter 24
   - The implications for supply of non-competitive market structures: Monopoly and Oligopoly – chapter 25 & 26

5. The concepts of Externalities and Public Goods may also be introduced (Stephanie Heger) – chapter 35 & 37

The first mid-term exam will cover topics 1, 2, and 3; the second mid-term exam will cover topics 4 and 5.

Full exams can cover material from any of the five topics.

Readings/Bibliography

Note: the course is in English

The textbook for the course will be:

Varian, Hal R., Intermediate Microeconomics: A Modern Approach, (9th international student edition), published by WW Norton & Co.

It is strongly recommended that students have access to a copy of the textbook.

There is also an accompanying exercise book which students may find useful (though it is not required a reading). This exercise book is:

Bergstrom, Theodore C. and Hal R. Varian, Workouts in Intermediate Microeconomics for Intermediate Microeconomics and Intermediate Microeconomics with Calculus, 2014, W.W. Norton & Co.: New York, London.

Copies of teaching materials (e.g., slides, notes, exercises) will be published on the university platform VIRTUALE: https://virtuale.unibo.it/

Teaching methods

Traditional lectures led by the course lecturers.

Lessons to work through exercises led by course lecturers or tutor.

Assessment methods

Final written exam of about one and a half or two hours, or two mid-term exams of about one and a half or two hours each.

The content and structure of the exam questions is intended to assess familiarity with the material covered in the course lectures and to assess understanding of the theoretical content of the course. The nature of the exam questions will closely follow examples covered as exercises during the course and discussed in lectures/tutorials.

Both mid-term and full exam will be based on multiple-choice questions aimed at assessing students’ ability to solve exercises and their understanding of the theoretical content of the course.

During exams students will NOT be allowed to use anything but a pen, pencil, and eraser. That is, students will NOT be allowed to bring materials such as: textbooks, lecture notes/slides; any written notes; web-enabled or data storage devices, or smartphones. Candidates found with such items will be removed from the exam and their work will not be graded.

Note: Only students with a sufficiently high grade in the first mid-term exam (i.e., 18 or higher) will be admitted to the second mid-term exam: other candidates must proceed to the full exam.
For students taking the mid-term exams (esami parziali), the final grade for the course will be the arithmetic average of the grades in the two mid-term exams (with 30 cum laude on a given mid-term counting as 31).

For students taking the full exam, the grade of the exam is the final grade.
There will be only one opportunity to take the first mid-term, in October. The second mid-term can instead be taken EITHER in December OR in January, on the same dates of the full exam. That is, if a student takes the second mid-term in December, they cannot take the second mid-term again in January; instead, they will have to take the full exam (in January or in September).

On an exceptional basis, after the second mid-term or after a full exam, students with a passing final grade (i.e., 18 or higher) can ask for an oral exam. After the oral exam, the final grade can decrease or increase (typically marginally) relative to the final grade from the mid-term or full exams. Oral exams are meant for students who studied well, but whose performance on the written exam does not adequately reflect their preparation (e.g., because of excess stress on the day of the written exam). Exceptionally, oral exams can also be requested by the instructors in cases of suspected cheating on the written exam.

The exam grading system is on a 0-30 scale. The maximum possible score is 30 cum laude, in case all answers are correct, complete, and formally rigorous. If that is not the case, the following grading scheme applies:

<18 fail
18-23 sufficient
24-27 good
28-30 very good
30 cum laude: excellent

To take the exam, candidates are required to register via the University’s electronic service (AlmaEsami). Students who fail to register for an exam on AlmaEsami will NOT be allowed to take the exam. Exam grades will be published via the University's electronic service (EOL).

After exams are graded, students will have the chance to see their graded exam on a date/time/location determined by the lecturers and communicated (via VIRTUALE) to the students.

Students will be allowed to reject their final grade for the course at most ONCE. Upon publishing the exam results, the lecturers will inform students about the deadline to reject their grade. Notification of the intention to reject a grade must be sent in writing (by email). After the date specified, grades will be electronically registered (verbalizzato).

Teaching tools

Slides and sample exercises will be available on the platform VIRTUALE: https://virtuale.unibo.it/

Office hours

See the website of Stephanie Heger

See the website of Enrico Cantoni