Course syllabus MIE2 - Microeconomics - Intermediate Course (ŠAVŠ - WS 2019/2020)

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Course title: Microeconomics - Intermediate Course
Semester: WS 2019/2020
Course supervisor: doc. Ing. Vladislav Flek, CSc.
Supervising department: Department of Law and Economics (ŠAVŠ)
Prerequisites for registration: Bachelor state examination
Time allowance: full-time, 1/2 (hours of lectures per week / hours of seminars per week)
part-time, 0/16 (lectures per period / seminars per period)
Type of study: usual
Form of teaching: lecture, seminar
Mode of completion and credits: Exam (5 credits)
Course objective:
Intermediate Microeconomics systematically analyzes the decision-making processes of households and firms in various types of market structures. Students will understand more deeply the principles of the economic modelling and the application of economic analytical tools.
Course methods: Lectures
Course content:
1.Utility and Choice. (allowance 3/6)
a.Consumer's behavior. Cardinalistic and ordinalistic approaches towards utility. Indifference analysis. Budget constraint. Consumer's optimum.
b.Individual demand function. The impact of change in income on individual demand and on utility maximization. Income elasticity of demand.
c.Impact of change in price of a given good on individual demand and on utility maximization. Price elasticity of demand. Cross elasticity of demand.

2.Production, costs and firm's revenues. (allowance 3/6)
a.Short-run production function, returns to variable input. Long-run production function, input substitution, returns to scale. Optimum input combination.
b.The firm's costs. Short-run cost function. Long-run cost function.
c.Firm's revenues.

3.Profit maximization in different market structures. (allowance 3/6)
a.Profit maximization conditions(first- and second order conditions). The choice of optimum output level.
b.The perfectly competitive market model. Optimum output level in the short-run. The firm's supply, the shut-down point. Short-run market supply. Firm's optimum output level in the long-run, the breakeven point. Long-run market supply. The efficiency of perfect competition.
c.Profit maximizing level of output of a monopoly. Setting the monopoly price. Monopoly profit. Price discrimination. Monopoly inefficiency and regulation.
d.Monopolistic competition. Firm's optimum output level in the short- and long-run. Chamberlain's model of monopolistic competition.
e.Oligopoly. Cartel, Cournot model, Stackelberg model, price-leadership model, kinked demand curve model.

4.The input markets (allowance 2/4)
a.First- and second-order conditions for profit maximizing level of inputs hired.
b.Labor market. The demand for labor in perfectly and imperfectly competitive markets. The labor supply.
c.Capital market. Consumer´s choice, investor's choice.

5.General equilibrium model (allowance 1/2)
a.Consumer efficiency. Production efficiency. The contract curve and production possibility frontier. Pareto-efficient allocations and general equilibrium.

Learning outcomes and competences:
After completing the course, student:
-Will create the general equilibrium diagram
-Will explain approaches towards the analysis of costs, production and revenues; will formulate producer´s optimum
-Will express the principles of optimum consumer behaviour and the formation of demand
-Will interpret the optimum functioning of production factor markets
-Will know the axioms and definitions of Microeconomic Theory at intermediate level

Teaching methods and workload (hours of workload):
Type of teaching methodDaily attendanceCombined form
Direct teaching
     Attendance of lectures12 h0 h
     Attendance of courses/seminars/tutorials24 h0 h
     Consultations with teacher (part-time form of study)0 h16 h
     Course reading and ongoing preparation24 h24 h
     Ongoing evaluation20 h30 h
     Preparation for final test20 h30 h
     Preparation for final oral exam40 h40 h
Total140 h140 h
Assessment methods:
Requirement typeDaily attendanceCombined form
Active lecture/seminar/workshop/tutorial participation10 %0 %
Mid-term test(s)40 %50 %
Final test50 %50 %
Total100 %100 %
Course completion:
1. Class participation in lectures and seminars is an important element in the learning process. Active, quality participation is part of final assessment (10%).
2. Two mid-term tests. (40%)
3. Final written exam (50%)
Minimal admission limit to the final written exam: 25 points raised in the semester. Otherwise the student´s grade is "failed". Minimum limit to pass the exam: total 60 points collected during the semester and from the exam. Otherwise the student´s grade is "failed". Minimum limit of points obtained from the written exam itself: 25 points. Otherwise the student´s grade is "failed".
Support for combined/distance forms of study:
pdf presentations of lectures
Reading list:
Language of instruction: Czech
HOŘEJŠÍ, B. -- MACÁKOVÁ, L. -- SOUKUP, J. -- SOUKUPOVÁ, J. Mikroekonomie.: 5. aktualizované vydání. 5th ed. Praha: Management Press, 2010. ISBN 978-80-7261-218-5.
Language of instruction: English
SNYDER, C. -- NICHOLSON, W. Intermediate microeconomics. 1st ed. Velká Británie: Cengage Learning, 2009. ISBN 978-1-84480-629-4.

Language of instruction: English
VARIAN, H. Intermediate Microeconomics. A Modern Approach. New York, London: W.W.Norton & Company, 2010. 739 p. ISBN 978-0-393-93424-3.

Study plans:
N-EMCZ Economics and Management, part-time form, initial academic year SS 2018/2019
N-EMCZ Economics and Management, full-time form, initial academic year SS 2018/2019
N-EMEN Economics and Management, full-time form, initial academic year SS 2018/2019
N-EMCZ Economics and Management, part-time form, initial academic year WS 2019/2020
N-EMCZ Economics and Management, full-time form, initial academic year WS 2019/2020
N-EMEN Economics and Management, full-time form, initial academic year WS 2019/2020
Run in the period of: SS 2018/2019, WS 2018/2019, SS 2017/2018, WS 2017/2018, SS 2016/2017, WS 2016/2017   (and older)
Course tutor: doc. Ing. Vladislav Flek, CSc. (examiner, instructor, lecturer, supervisor)
Mgr. Pavel Neset, Ph.D. (examiner, instructor, lecturer)
Teaching language: Czech, English
Room: Mladá Boleslav, Praha

Last modification made by Mgr. Luděk Švejdar on 05/10/2019.

Type of output: