The course will help to achieve the following specific competencies of the subject:

- Characterize the behavior of consumer and competitive firm through models based on the principle of optimization for consumers and firms.

- Obtain the supply and demand functions as a result of the maximization of the utility and profit, respectively.

- Formalize such results and interpret them in economic terms.

- Carry out an analysis of comparative statics in order to study the effects that cause changes in the important economic variables on these results.



In addition, the following cross competencies will be developed:

- Ability to work in team.

- Capacity to write with fluency.

- Capacity for analytical thinking and critical reflection.

1. Introduction: microeconomics and economic models.

2. Production.

- Production technology.

- Production with one variable input.

- Production with two variable inputs.

- Returns to scale.

3. The cost of production.

- Measuring costs.

- Cost in short-run.

- Cost in long-run.

- Cost curves in long-run and short-run.

4. Profit maximization and competitive supply.

- Perfectly competitive markets.

- Profit maximization.

- Marginal revenue, marginal cost, and profit maximization.

- Choosing output in the short-run.

- The competitive firm's short-run supply.

- The short-run market supply curve.

- Choosing output in the long run.

- The industry's long-run supply curve.

5. Consumer behavior.

- Consumer preferences.

- Budget constraints.

- Consumer choice.

- Marginal utility and consumer choice.

6. Individual demand and market demand.

- Individual demand.

- Income effect and substitution effect.

- Market demand.

- Consumer surplus.

7. The Analysis of Competitive Markets.

- Evaluating the Gains and Losses from Government Policies. Consumer and Producer Surplus.

- The Efficiency of a Competitive Market.

- Minimum Prices.

- Price Supports and Production Quotas.

- Import Quotas and Tariffs.

- The Impact of a Tax or Subsidy.

The central element is the master class, in which the various chapters that integrate the subject will be developed. In practical classes the teacher will solve exercises. With respect to non-presential activities students will study the subject and solve, either individually either in group, exercises and theoretical and practical issues related to the topics discussed in lectures and practices which will be evaluated by the teacher.

The main evaluation of the course (primera convocatoria) is mixed. There will be a written final exam (the date will be set by the School management), in which the students will solve both theoretical and practical problems. The final exam will represent 70% of the final grade.

In addition to the final exam, there will be several partial exams throughout the whole course. The partial exams will represent 30% of the final grade:

1. Each student forms part of 2 exercise blocks, each one distributed into 2 sessions.

2. In each of the sessions, the students will jointly solve several exercises in the class, which will not be evaluated. In the last part of the session each group will be given worksheets in order to provide answer some questions related to the problems (completed using with no other material than the textbook) previously studied during the session. The answers will be handled to the Professor at the end of the session.

In addition, the second session of each block will include a test to be completed individually and consisting of a multiple choice part and an exercise.

3. Each one of both multiple choice test solved individually will suppose 5% of the final grade, each one of both individual exercises will suppose 2.5% of the final grade and each one of both exercises solved in group will suppose a 7.5% of the final grade. All it adds 30% of the final grade of the subject.

4. Students, who will not participate in any of the partial exams and will not provide any justification of why, will receive a grade of zero in each partial exam they will miss.

In all the exams, the professor will evaluate the communication skills, and the ability to reason analytically and critically.



Moreover, the professors of the course will take into account the coordination ability of the group in the evaluation of the group tests.

In order to weigh the grade of each student in this evaluation there will be a questionnaire for the students of the groups of practices in which students will evaluate their own participation and the one of the rest of the participants of the group.



The student who takes part in the system of continuous evaluation will be able at any time to resign to it and to take part in the system of final evaluation.



The student who takes part in the system of final evaluation will make an only written test that will consist of a final examination (in the date indicated by the Center) in which the student will solve theoretical as well as practical exercises. This test will consist of two parts:

• First part: this part will be the same one that the students who take part in the system of continuous evaluation will make, and will suppose 70% of the final grade.

• Second part: this part will be solved solely by the students who do not take part in the system of continuous evaluation, and will suppose 30% of the final grade.

Slides and exercises available on internet platform Moodle.

Basic bibliography

Microeconomics, 9th Edition. Robert S. Pindyck and Daniel L. Rubinfeld. Pearson Prentice Hall.

In-depth bibliography

- Intermediate Microeconomics: A Modern Approach, 8th Edition. Hal R. Varian. W. W. Norton & Company.
- Economics, 2nd Edition. Paul Krugman and Robin Wells. Worth Publishers.

Journals

To be specified by the teacher in charge.