София 1700, Студентски град “Христо Ботев”,
Приета с решение на ФС на факултет
ОБЩОИКОНОМИЧЕСКИ
Протокол № /
Утвърждавам:
Декан
Доц. д-р Л. Йотова
УЧЕБНА ПРОГРАМА
Учебна дисциплина:
Код на дисциплината:
Образователно-квалификационна
степен:
Статут на дисциплината
Област на висше образование:
Професионално направление:
Специалност:
Факултет:
Катедра:
Хорариум:
Извън аудиторна заетост
Кредити:
Титуляр:
MICROECONOMIC THEORY AND
ANALYSES
(INTERMEDIATE
MICROECONOMICS)
В10000 О0534
BACHELOR OF ECONOMICS
3.
3.8.
Optional
SOCIAL, ECONOMIC AND LAW
SCIENCES
ECONOMY
ECONOMICS (in English)
GENERAL ECONOMICS
ECONOMICS
Lectures: 60 hours
90 hours
Credits: 6
Assoc. Prof. Vera Pirimova, Ph.D
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PREREQUISITS
The academic course in “Microeconomic theory and analysis” has been taught under the
name "Microeconomics – second level” since 1992 to students in the bachelor degree of the
speciality “Macroeconomics”. It is designed for students, who have already passed basic
university courses in "Microeconomics" and "Macroeconomics". An additional requirement is
that students should have knowledge in the compulsory courses "Mathematics I" and
"Mathematics II".
ANNOTATION
The specialized course in “Microeconomic theory and analysis” is a logical continuation
of the received in the course in “Microeconomics” basic knowledge of the principles of behavior
of economic agents, aiming to extend the students' knowledge of microeconomic issues. To
achieve this primary objective the course is considered to enlarge more complex relationships
occurring at the microeconomic level. It is used the current development into the microeconomic
theory for explanation of the actual functioning of the commodity and resource markets. The
idea of the course is to reveal the possibilities and directions for the practical application of
microeconomic models for making of economic and management decisions. This course is
aimed to develop skills and abilities to perform specific microeconomic analysis and evaluation
of the behavior economic agents. Widely used in the course are methods of modeling and using
of mathematical formalism, obtained in the UNWE basic knowledge in mathematics.
LANGUAGES OF TEACHING:
English
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2
COURSE CONTENT
А. LECTURES
№
1
2
3
4
5
TOPIC
BASIC PRINCIPLES AND INSTRUMENTS OF MICROECONOMIC
ANALYSES
Economic models. Principles of the optimization and the equilibrium in the
behavior of the microeconomic subjects. Marginal rule. Instructive and
procedural optimization. Market coordination and price functions. Criteria
for classification of markets. Types of markets. The concept for the
“industry."
FUNDAMENTALS OF DEMAND AND SUPPLY
THEORY OF DEMAND
Theory of cardinal utility. Consumer optimum and criticism of the cardinal
approach. Theory of ordinal utility. Characteristics of the indifference
curves. Budget constrain. Consumer optimum according the ordinal
approach. Income effect and substitution effect - J. Hicks and E. Slutsky
approaches. Theory of revealed preferences of P. Samuelson. Deduction of
the demand curve. Consumer surplus - options for defining and measuring.
Using the analytical method of indifference curves in the economic theory.
INDIVIDUAL AND MARKET DEMAND
Determinants and deduction of the market demand curve. Market demand
for private and public goods. Elasticity of demand - types and role in
microeconomic analysis. Price elasticity and income elasticity of demand.
Cross elasticity of demand. Methods of marginal and average elasticity.
Bandwagon effect, Snob effect and T. Veblen’s effect. Relationship
between market demand, price elasticity of demand and total revenue of the
producer. Demand for the production of the firm in conditions of perfect
competition, monopoly, monopolistic competition, and oligopoly.
THEORY OF PRODUCTION
Production function and production method. Characteristics of the
production function. Elasticity of the factors substitution. Intensity of the
factors. Long-run analysis of production - laws of returns to scale. Short-run
analysis of the industry - law of diminishing returns. Optimal behavior of
the firm – maximizing the results and minimizing the production costs.
Long-run and short-run optimal development way. Production possibility
curve of the firm. Optimal behavior of a firm producing two different
products.
THEORY OF COSTS
Costs of the firm - accounting and economic approach. Function of the
short-run costs and function of the long-run costs. Classical theory of the
costs. Types of costs in short-run period. Relationship between average and
marginal costs. Long-run period costs. Elasticity of the costs and returns to
scale. Modern theory of costs. Reserve and surplus capacity of the
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Hours
4
4
4
4
4
3
6
7
8
9
10
11
12
company. Long-run production and management costs. Analysis of
economies of scale. Sources of internal and external, of financial and real
economies of scale.
THEORY OF THE FIRM
THEORY OF THE FIRM: PERFECT COMPETITION
Assumptions of the model of perfect competition. Optimal behavior of the
firm and the industry in the short-run and long-run period. Production
surplus in short-run period. Optimal allocation of resources in long-run
period. Equilibrium of the firm and industry by changes in the market
demand and in the costs of production. Effects of imposing taxes.
Efficiency of the perfect competition.
THEORY OF THE FIRM: MONOPOLY
Nature, causes and types of monopoly. Demand and revenue of the
monopoly. Costs of the monopoly. Optimal behavior of a monopoly firm in
the short-run and long-run period. Achievement and measuring of the
monopoly influence. Equilibrium of the monopoly by changes in the market
demand and in the costs of production. Effects of imposing taxes.
Comparison between monopoly and perfect competition.
PRICE DISCRIMINATION
Nature and models of price discrimination. Price discrimination of third,
second and first degree. Consequences of the price discrimination.
Relationship between the price discrimination and the price elasticity of
demand. Rates of two parts. Monopoly influence and advertisement.
Regulation of monopoly. Regulation of taxes and price of the monopoly
product. Regulation of the natural monopoly.
THEORY OF THE FIRM: MONOPOLISTIC COMPETITION
Characteristics and assumptions of the model of monopolistic competition
of E. Chamberlin. Costs of production and costs of sales. Demand curve and
product differentiation. Optimal behavior of the firm in short-run and in
long-run period. Equilibrium by entering of new firms. Equilibrium by price
competition. Equilibrium simultaneously by entering of new firms and price
competition. Appreciation of the model of monopolistic competition of E.
Chamberlin. Efficiency of the monopolistic competition. Comparison
between monopolistic and perfect competition.
THEORY OF THE FIRM: OLIGOPOLY
Characteristics and assumptions of the oligopoly model. Oligopoly in the
absence of collusion. Model of A. Curnot duopoly. Model of reaction
curves. Model of J. Bertrand. Kinked-curve model of Paul Sweezy.
Collusive oligopoly. Cartels. Price leadership.
PRINCIPLES AND MECHANISM OF PRICE-FORMATION
Main assumptions of the neoclassical theory. Fields of criticism and defense
of marginalism. Pricing at the level of average costs. Mark-up rule. Bain’s
models of restrictive pricing. Models of P. Sylos-Labini and Fr. Modigliani.
Predictive capabilities of the models. Comparison with the model of perfect
competition.
MANAGEMENT AND BEHAVIOURAL THEORIES OF THE FIRM
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4
4
4
4
4
4
4
4
13
14
15
The W.J. Baumol’s theory of the revenue maximizing. The R.Marris’s
model for entrepreneurship. Managerial model of O. Williamson.
Behavioral theories of the firm. Formation of the aims and types of aims of
the firm. Simple behavioral model. Comparison with the traditional theory
of the firm.
FACTOR MARKETS AND GENERAL EQUILIBRIUM
PRICE-FORMATION OF FACTORS OF PRODUCTION
Pricing of production factors in perfect competition. Labor demand by the
company. Market demand for labor. Individual and market supply of labor.
Equilibrium factor price. Monopoly and monopsony. Bilateral monopoly.
Pricing of production factors with fixed supply – rent and quasi-rent.
GENERAL EQUILIBRIUM AND ECONOMIC EFFICIENCY
General equilibrium model of L. Walras - conditions, uniqueness and
stability of the equilibrium. Geometric interpretation of general equilibrium
model. General equilibrium model of two consumers, two goods, two
production factors. General equilibrium and the allocation of resources.
Distribution of income from the ownership of resources. Efficiency of
substitution of factors. Efficiency of distribution of goods and wealth.
SECONDARY EFFECTS AND PUBLIC GOODS
Externalities – types and instruments for correction. Correction through
taxes and subsidies. Control of the detrimental emissions and pollution.
Externalities and property rights - the R. Coase theorem. Public goods –
characteristics, demand and supply of public goods.
4
4
4
METHOD/ STRATEGY OF TEACHING:
The course in Microeconomic theory and analysis is based on 60 hours of lectures. It is
consistent with the modern achievements and methodology in the teaching of economic theory.
In the course are used modern didactic tools and actual economic and statistical
information. The teaching process includes the active participation of students. They should
write individually under the technical guidance of the instructor, and submit a personal written
assignment on a selected individual microeconomic problem. This gives a possibility for a closer
relation between the obtained theoretical knowledge and their practical application to solve
specific tasks for implementation of management and economic decisions.
In the teaching process are used white boards and colored markers, projectors, computer
or multimedia computer class, considering the specifics of individual topics and sections of the
course.
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5
INDIVIDUAL ASSIGMENT
The individual work aims to extend the students' knowledge of specific theoretical
problems and relationships in microeconomic theory. It is consistent with individual preferences
and abilities of students. Each student makes an individual assignment, which is evaluated and
has a certain weight in forming the final course grade.
ASSESMENT METHODS
The final grade is on six-mark scale, where the minimum score for successful completion
of the course is "Satisfactory / 3 /." The comparability of the grade relative to European system
of credit transfer is as follows:
Excellent /6/
Very good/5/
Good /4/
Satisfactory
/3/
A
B
C
D
E
The credits are given in accordance to the curricula.
Poor mark /2/
FX
F
The credits are
not given.
The final grade is formed as a result of written exam and has a complex character.
The evaluation method is based on a comprehensive final evaluation, which includes the
results of: final term examination, midterm test and attendance and presentation of the personal
individual assignment. The midterm test is aimed to determine the reached level of knowledge at
the middle of the semester. The test contains theoretical test questions, problems and issues. The
individual assignment includes a theoretical and practical (empirical) part and is between 20 and
25 standard pages. At the end of the semester students make a final written exam. The final grade
is complex and reflects the following specific relative shares (weights): midterm test - 20%,
individual assignment - 30%, final written examination - 50%.
LEARNING OUTCOMES
The course in “Microeconomic theory and analysis” gives additional and deeper
knowledge of economic theory on the principles of rational behavior of economic agents and the
efficient functioning of commodity markets and factor markets. This determines the importance
of the course in terms for the next studied special economic courses.
The course in “Microeconomic theory and analysis” allows the skills for economic
thinking and behavior as well as analytical and managerial skills and abilities. These skills can be
applied practically in making and implementing decisions in different economic entities.
After studying the course students are prepared for successful learning in other special economic
courses, especially for closely related disciplines like "Applied Microeconomics", "Market
Structures", "Theory of Competition", "Business Economics" and others.
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6
SPREADING OF THE DISCIPLINE:
Under the title "Microeconomic Theory" or "Intermediate Microeconomics" this course is
taught in many universities in different countries, including EU countries, for example:
1. London School of Economics – London, UK;
2. Humboldt Universitaet – Berlin, Germany;
3. University Leuven – Belgium.
SUMMARY OF THE STUDENTS’ LOAD
Type of students’ work
1.
2.
3.
4.
5.
6.
7.
Lectures
Seminars
Laboratory work
Practical work
Course work
Paper
Individual
assignment
8. Midterm exam
9. Ongoing assessment
10. Final exam
Total
Total load
60
written
60
Load
per week
4
4
Individual
work
Total
60
30
30
30
30
30
90
30
150
REFERENCES:
А. MANDATORY
1.
2.
3.
4.
5.
Hyman D., Modern Microeconomics: analysis and applications, 1993
Kohler H., Intermediate Microeconomics: theory and applications, 1986
Mansfield E., Microeconomics: theory and applications, 1988
Nicholson, W., Intermediate microeconomics and its applications, 2000
Varian H., Intermediate Microeconomics: A Modern Approach, 2009
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B. RECOMMENDED
1. Аллен Р., Математическая экономия, М., 1963
2. Баумоль У., Экономическая теория и исследование операций, М., 1965
3. Вэриан Х., Микроэкономика – промежуточный уровень, М., 1997
4. Лейдлър Д., С. Естрин, Увод в микроикономиката, С., 1992
5. Маршалл А., Принципы политической экономии, М., 1986
6. Никълсън У., Междинна микроикономика и нейните приложения, С., 1999
7. Пиндайк Р., Д. Рубинфелд, Микроэкономика, М., 1992
8. Ракарова С., Микроикономикс – второ равнище, първа част, С., 1999
9. Ракарова С., Микроикономикс – второ равнище, втора част, С., 1998
10. Робинсон Дж., Экономическая теория несовершенной конкуренции, М. 1986
11. Хикс Дж., Стоимость и капитал, М., 1988
12. Чемберлин Э., Теория монополистической конкуренции, М., 1959
PREPARED BY:
Assoc. Prof. Vera Pirimova, Ph.D
CHAIR OF THE DEPARTMENT:
(Prof. Traycho Spasov, Ph.D)
DEAN:
(Assoc. Prof. Liliya Yotova, Ph.D)
Идентификация на статуса: ОДНК_7.1.3-3/ Версия 01/Изменение ____/____________; стр. __/__
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8