To develop skills of the students in understanding and analyzing undergraduate topics on microeconomics.

Learning Outcomes

CTPO

TOA

Upon successful completion of the course, the students will be able to :

LO - 1 :

learn the terminology of microeconomics.

1,2

LO - 2 :

apply the theory of maximizing agents to firms and consumer.

1,2

LO - 3 :

use several solution techniques for microeconomics problems.

1,2

LO - 4 :

integrate economic models with real world applications.

1,2

LO - 5 :

understand how markets operate and identify welfare outcomes for consumer and firms.

1,2

CTPO : Contribution to programme outcomes, TOA :Type of assessment (1: written exam, 2: Oral exam, 3: Homework assignment, 4: Laboratory exercise/exam, 5: Seminar / presentation, 6: Term paper), LO : Learning Outcome

Contents of the Course

Production function and law of diminishing returns, producer equilibrium, changes in equilibrium, costs of production, equilibrium in perfect competition, monopoly, monopsony, oligopoly, monopolistic competition, and the other markets, the market for the factors of production, welfare economic and general equilibrium, externalities and public goods

Course Syllabus

Week

Subject

Related Notes / Files

Week 1

Costs, concepts of cost,distinction between the short and the long run, cost curves, shifts in cost curves

Week 2

Firms in perfect competition market, market structure, marginal revenue, average revenue, total revenue, short-run equilibrium of the firm and industry, short-run supply curve of firm and industry

Week 3

Firms in perfect competition market,long-run equilibrium of the firm,constant-cost industries, increasing and decreasing cost industries, long-run supply elasticity

Monopoly, price discrimination, regulation of monopolies, comparison of monopoly with perfect competition

Week 6

Oligopoly, definition, causes, classification, the Cournot model, the Edgeworth model, the Chamberlin model, the Sweezy model, the kinked demand curve

Week 7

Oligopoly, the Bertrand model, the Stackelberg model, the theory of games, price leadership, entry by new firms

Week 8

Monopolistic competition, definition, demand curves under monopolistic competition, equilinrium in the short run, equilibrium in the long run, comparison of monopolistic competition with perfect competition, comparison of monopolistic competition with monopoly

Week 9

mid-term exam

Week 10

The market for the factors of production,demand for factor under perfect competition, demand for factor under imperfect competition,price elasticity of factor demand

Week 11

The market for the factors of production, factor-market equilibrium,concept of rent, quasi rents, wage differentials

Week 12

Welfare economics and general equilibrium,optimal resource use,necessary conditions for optimal resource allocation,the Edgeworth Box,Pareto effient allocation,contract curve,the theory of the second best, quiz

Week 13

Welfare economics and general equilibrium, perfect competition and economic efficiency

Week 14

Uncertainty and asymmetric information, risk aversion, methods for reducing risk, information and market equilibrium,information and economic efficiency

Week 15

Externalities and public goods, defining externalities, externalities and allocational efficiency, bargaining and the Coase theorem, public goods, public goods and market failure

Week 16

End-of-term exam

Textbook / Material

1

Ünsal, E.M. 2020; Mikro İktisat, Murat Yayıncılık, 11.Baskı, Ankara

2

Dinler, Z. 2020; Mikro İktisat, Ekin Kitabevi, 30. Baskı, Bursa

3

Yalta, A. Y. ve Yalta A.T. 2021; Genişletilmiş 4. Baskı, Modern Mikro Ekonomiye Giriş, Adres Yayınları, Ankara