"G. d'Annunzio"
Basic knowledge of calculus.
The objective of this class is to provide students with logic and technical tools to understand individual decisions under different market conditions, in both deterministic and probabilistic environments. Lectures will cover issues related to the efficient allocation of resources under different market structures in order to enable students to interpret economic events and other related phenomena.
Consumption Theory. Production Theory. Market Theory. General Equilibrium.
Preferences and consumption: Utility function, Indifference curves; Utility maximization and demand functions; Expenditure minimization and compensated demand functions; Income and substitution effect; Demand elasticity. Gain from trade: Edgeworth box and Pareto efficiency under different market structures. Intertemporal choices and capital markets: Market frictions; Discounted utility. Choices under risk: Expected utility; Risk aversion; Insurance markets. Production theory and technology: Production function, marginal and average product; Economies of scale; Production costs; Profit maximization; Cost minimization; Production possibility frontier; Production and exchange. Labor market: labor supply; labor demand; market equilibrium. Market theory: Perfect competition, Monopoly and monopsony; Price discrimination; Monopolistic competition; Oligopoly.
Varian, H. (ult.ed.), Microeconomia, Cafoscarina, Pandimiglio A. – Spallone M., problemi di Microeconomia, CEDAM
Frontal lessons, recitations, experiments, class notes and other documents made available by the teacher.
Written exam, consisting of both exercises and short essays, aimed at testing the capability of students solving problems through the correct application of microeconomic theory.
