Applied Microeconomics

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Applied Microeconomics
Course ID: 
Course Description: 

Microeconomics analyze the behavior of producers and consumers and the organization of different forms of markets. The course focuses more on applications of microeconomics that concern managers and engineers and less on pure theory. It is divided into three parts. The first part presents the theory and empirics of demand: utility functions, the consumer equilibrium, demand functions, and elasticities. The second part is dedicated to the theory and empirics of production: production functions, the producer equilibrium and cost functions. Finally, the third part examines the two extreme market structures, namely perfect competition and monopoly.

Learning Outcomes

By the end of this course, students will be able to:

- Understand the basic principles of microeconomics

- Apply microeconomic tools in management problems

- Use mathematics for modeling economic problems

- Recognize the limits of microeconomics

Lectures’ Outline

1. Introduction: The law of supply and demand

2. Utility functions and consumer’s choice

3. Demand functions

4. Elasticities of demand functions

5. Introduction to econometrics

6. Production functions

7. Long-run cost functions

8. Short-run cost functions

9. Perfect competition

10. Monopoly


Recommended Reading:

· E. Mansfield: Managerial Economics: Theory, Applications and Cases, Benos Publ., Athens, 2000, (in Greek).

· W. Nicholson: Microeconomic Theory: Basic Principles and Extensions, Kritiki Publ., Athens, 1998 (in Greek).