MICROECONOMICS A - L

1.     Knowledge and understanding:

Microeconomics is the foundation of any course of study and reasoning based on economic science. Therefore, understanding the notions of microeconomics is fundamental. The aim is therefore to introduce the notions that distinguish it, which are also useful for the study of all other subjects, and to ensure that students master them. These notions concern basic models relating to the equilibrium of a market (law of supply and demand), consumer behaviour, the choices of enterprises in different contexts (perfect competition and other market regimes) and the compatibility of the choices of different operators.

2.     Ability to apply knowledge and understanding:

Knowledge will have to be applied to the analysis of specific cases (related to consumption choices, or production choices of firms, or the configuration of markets) and to the solution of simple numerical exercises. The ability to translate notions into mathematical exercises is indispensable for a true understanding of the teaching. Cases are presented in the textbook and in the course of the lectures.

3.     Autonomy of judgement (making judgements):

The student should be able to understand which of the models studied is most appropriate for the analysis of real facts; what the relevant aspects of the different models are and what their pros and cons are in terms of their usability for descriptive and predictive purposes.

4.     Communication skills:

The student must be able to proceed to the illustration of the methods used and the conclusions reached, with regard to the analysis of concrete cases, with propriety of language and with the appropriate theoretical tools; he/she must be able to use the acquired knowledge to effectively propose him/herself also on the labour market.

5.     Learning skills 

Understanding of the categories of analysis and their fields of application; learning of the logic and methods of analysing the behaviour of the various economic operators; orderly and adequately commented execution of the numerical analysis exercises.

80% Lectures, 20% exercises guided by the lecturer.

During the FRONTAL LESSONS and GUIDED EXERCISES, the theoretical aspects of the various topics and their application to simple exercises are explained. During the guided exercises, the lecturer also promotes work (carrying out exercises) in small groups.

1. Part I - Introduction

1.A. Basic concepts (ch 1)

1.B. Supply and demand: basic concepts (ch 2)

1.C. Mathematical concepts for microeconomics (handout)

2. Part II - Producers, consumers and competitive markets

2.A. Consumer behaviour (ch 3)

2.B. Individual and market demand (ch 4)

2.C. Demand theory in mathematical terms (ch. 4 appendix)

2.E. Production (ch. 6)

2.F. Production costs (ch. 7)

2.G. Profit maximisation and competitive supply (ch. 8)

2.H. Analysis of competitive markets (ch. 9)

3. Part III - Market Structure and Competitive Strategy

A. Market Power: Monopoly and Monopsony (Ch. 10)

3.B. Price Fixing and Market Power (Ch. 11)

3.C. Monopolistic competition and oligopoly (ch. 12)

3.D. (Game theory and competitive strategy) (ch. 13)

4. Part IV - Information, Market Failure and Public Intervention

4.A. General equilibrium and economic efficiency (ch. 16)

4.C. Externalities and public goods (ch. 18)

The reference text is Robert S. PINDYCK - Daniel L. RUBINFELD, Microeconomics (2018, 9th edition), Pearson publisher, Milan [PR18].

Of the book above, there is a shortened 'CUSTOM' version that contains only a few chapters of the whole book. The chapters that are part of the programme are exactly those contained in the CUSTOM edition. The cost of the CUSTOM edition is significantly lower than the full version. This is a shortened, black-and-white version of the full text in colour. The exercises are also missing, but can be retrieved from the book's website. In the 'course content' section, what is in brackets refers to the chapters in the full version.

Microeconomics is such a basic and well-established subject that it can also be studied in other textbooks if desired. Among others:

M. KATZ, H. ROSEN, C.A. BOLLINO, W. MORGAN, Microeconomics, McGrawHill Italia, Milan, 5th Italian ed., 2015. 

B. D. BERNHEIM, M. D. WHINSTON, Microeconomics, 3rd ed. McGraw-Hill). 

R. FRANK, Microeconomics, 5th ed., McGrawHill, Milan, 2009.

CUSTOM PUBLISHING: Microeconomics - CREATE a.y. 2017 - 2018 Prof. Roberto Cellini.  McGraw - Hill, Milan.

Compulsory written examination. An intermediate test for attending students is also possible.

The written test consists of answering theoretical questions and carrying out numerical exercises. The questions aim to verify that the student is familiar with the analysis tools illustrated in the lecture and can also apply them to the analysis of case studies and the performance of simple numerical exercises. Some questions, therefore, are of the type "Explain the concept of ... Some questions, therefore, are of the type "Explain the concept of ..." and simply require you to reproduce concepts and theoretical content; other questions are of the type "Applying the concept of ..., analyse the following situation: ..."; still other questions consist of the (commented) performance of simple numerical exercises, along the lines of the "19 model exercises" solved in the lesson. All questions require detailed development and reasoned considerations.

Attending students have the option, and are urged to do so, to take the mid-term test to be held immediately after the fifth week of the lecture on the topics covered up to then (approximately half of the syllabus). For the remaining half, students will have to complete the examination in one of the two official calls of the session immediately following the conclusion of the course.