Content, progress and pedagogy of the module

The Microeconomics II module consists of two parts.

The first part builds on the basic microeconomics introduced in the Microeconomics I module. After completing the module, students will be able to formulate and apply the underlying mathematics and graphical representations of consumers’ optimal choices and demand analysis, firms’ profit maximization in the short and long run, as well as different market forms and market interventions.

The second part of the module consists of microeconomic approaches to environmental challenges, focusing on externalities, public goods, and solutions to these problems. The solutions include various taxation and quota systems to address externalities. The module further introduces general equilibrium models, enabling students to work with how Denmark’s environmental policies are shaped by the analytical tools of the curriculum. This provides students with insight into how economic frameworks influence national policymaking. Additionally, the second part of the module covers cost-benefit analysis, addressing the valuation of environmental goods, the concepts of abatement and damage cost functions. The final part on environmental innovation examines how companies are motivated to reduce their environmental impact from a more dynamic perspective.

Learning objectives

Knowledge

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

• Mathematical models of consumers and producers.
• The various empirical contexts that allow for the application of the mathematical models.
• How the abstraction of theory—including the use of mathematics—enhances theoretical insight and the possibilities for empirical application.
• Theoretical solutions to common environmental problems.

Skills

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

• Analyzing the behavior of microeconomic agents theoretically using both algebra and geometry.
• Selecting and applying microeconomic theories to analyze environmental problems.
• Assessing and discussing the opportunities and limitations of microeconomic analysis of environmental problems on an academic basis.

Competences

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

• Independently organize and conduct analyses of microeconomic issues.
• Combine knowledge and skills in microeconomics with knowledge and skills in economic methods to develop economic analyses at the micro level.
• Take responsibility for their own professional development within microeconomics.

Type of instruction

For further information see §17.

Exam

Exams