Content, progress and pedagogy of the module

The module introduces the student to basic concepts of microeconomic theory.

Market demand, market supply and market equilibrium are derived from assumptions about the behaviour of households and companies under different market forms. The student will be able to apply comparative statics (i.e. analyse changes in equilibrium price and quantity) to output, input and international markets in order to assess the impact on companies in the market, including the impact of price regulation and taxation.

Causes, consequences and solutions to various market imperfections related to imperfect competition (monopoly, monopolistic competition and oligopoly) as well as other imperfections (externalities, public goods and asymmetric information) are discussed based on microeconomic theory (often supported by graphical or mathematical representation) and concrete cases and real-life examples. The physical teaching activities are supported by video and exercises on a digital learning platform.

Therefore, the module focuses on the importance of the business environment, which is also addressed in the following semesters' modules (e.g. in macroeconomics).

Learning objectives

Knowledge

The objective is that the student after the module possesses the necessary knowledge on:

• how to define different market forms in output markets.
• how to identify different market imperfections in output markets.
• the behaviour of households and companies in output and input markets.

Skills

The objective is that the student after the module possesses the necessary skills in:

• to perform comparative statics in the context of changes in output and input markets (supported by graphical representation). 
• analyse the causes, consequences and possible solutions of market imperfections in output markets, including the implications for companies in the market (supported by graphical and mathematical representation).
• reflect on the need for economic policy and regulation in the event of market imperfections in the output market, including the implications of this for companies in the market.

Competences

The objective is that the student after the module possesses the necessary competences in:

• independently identify microeconomic issues in output and input markets.
• be able to argue the application of microeconomic theory in order to analyse output and input markets.
• reflect on the importance of economic policy and the regulation of output and input markets.

Type of instruction

For information see § 17.

Exam

Exams