Microeconomics II

This course is the natural continuation to Microeconomics I, in which the main agents participating in the economy and the way they interact in the market were introduced. Microeconomics II focuses on performing a detailed analysis on how the agents make their decisions, on reviewing imperfectly competitive markets and on analyzing market failures and the role of the government.

By the end of the course, the student will be able to predict the response of the economic agents (consumers, producers and institutions) when the conditions affecting their decision-making process change.

Besides Microeconomics I, this course requires basic math skills in arithmetic, algebra and geometry. You should have learned all this in previous years and/or in Modelos matemáticos para ADE course.


Course outline and readings

Problem set 1 (Units 1 and 2)

Unit 1. Consumer Behavior

  • Pindcyk and Rubinfeld, 3.1-3.5.
  • Andrés and Martí, chapter 3.

Unit 2. Individual and Market Demand

  • Pindcyk and Rubinfeld, 4.1-4.6.
  • Andrés and Martí, chapter 3.

Problem set 2 (Units 3 to 7)

Unit 3. Market Power: Monopoly and Monopsony

  • Pindcyk and Rubinfeld, 10.1-10.6.
  • Andrés and Martí, chapter 6.

Unit 4. Pricing with Market Power

  • Pindcyk and Rubinfeld, 11.1-11.5.
  • Andrés and Martí, chapter 6.

Unit 5. Monopolistic Competition and Oligopoly

  • Pindcyk and Rubinfeld, 12.1-12.6.
  • Andrés and Martí, chapters 7 and 8.

Unit 6. Game Theory and Competitive Strategy

  • Pindcyk and Rubinfeld, 13.1-13.6.

Unit 7. Markets for Factor Inputs

  • Pindcyk and Rubinfeld, 14.1-14.2.
  • Andrés and Martí, chapter 9.

Problem set 3 (Units 8 and 9)

Unit 8. General Equilibrium and Economic Efficiency

  • Pindcyk and Rubinfeld, 16.1-16.4 and 16.6-16.7.

Unit 9. Externalities and Public Goods

  • Pindcyk and Rubinfeld, 18.1-18.2 and 18.4-18.6.
  • Andrés and Martí, chapter 10.

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