COURSE INFORMATION Course Title: MICROECONOMICS

Code	Course Type	Regular Semester	Theory	Practice	Lab	Credits	ECTS
ECO 205	B	3	3	0	0	3	5

Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature)	NA
Main Course Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	Prof.Dr. Abdurrahman IŞIK aisik@epoka.edu.al , 1
Second Course Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	NA
Teaching Assistant(s) and Office Hours:	NA
Language:	English
Compulsory/Elective:	Compulsory
Study program: (the study for which this course is offered)	Bachelor in Banking and Finance (3 years)
Classroom and Meeting Time:
Code of Ethics:	Code of Ethics of EPOKA University Regulation of EPOKA University "On Student Discipline"
Attendance Requirement:	75%
Course Description:	The aim of this course is to examine the analytical framework used in microeconomics. New concepts are illustrated with entertaining and informative examples, both verbal and numerical. In addition, several purely ‘micro’ topics are illustrated with ‘macro’ applications. On the successful completion of this unit, students should have a clear understanding of the basic principles of microeconomics and with the aid of simple mathematical tools, be able to solve specific problems and answer questions appropriate to this level. Topics include supply, demand and equilibrium, the behavior of consumers, the behavior of firms, production and costs, competition welfare economics, knowledge information, monopoly, market power, collusion and oligopoly, the theory of games, external costs and benefits, common property and public goods, the demands for factors of production, the market for labor, risk and uncertainty.
Course Objectives:	The objective of microeconomic theory is to analyse how individual decision-makers, both consumers and producers, behave in a variety of economic environments.

BASIC CONCEPTS OF THE COURSE

1	The three primary microeconomics concepts include demand supply, incentives, and costs and benefits. Additionally, production, resource allocation, price, consumption, and scarcity are taken into consideration.

COURSE OUTLINE

Week	Topics
1	Introduction
2	Chapter 1 What is Economics? & The Economic Problem = > After completing Chapter 1, the student will have a good sense for the range of questions that economics addresses and will be on the path towards an economic way of thinking. The students will begin to think of cost as a forgone alternative—an opportunity cost—and also about making choices by balancing marginal costs and marginal benefits.
3	Chapter 2 Demand and Supply = > Demand and supply lie at the heart of the principles course. Eventually in the microeconomics class we derive the demand curve and the supply curve from deeper views of the choices that people and firms make. And in the macroeconomic class, the lessons learned here apply, albeit with subtle differences, to the aggregate supply-aggregate demand model.
4	Chapter 3 Elasticity =>The student can now use the demand and supply model to generate predictions and can supplement this knowledge with the ability to provide richer predictions based on the elasticities of demand and supply.
5	Chapter 4 Efficiency and Equity => This chapter develops a more thorough understanding of efficiency, which was first introduced in Chapter 2. It also develops a deeper grasp of how the demand and supply model introduced in Chapter 3 influences resource allocations in an economy. Finally, it explains the situations in which a competitive market does and does not allocate resources efficiently.
6	Chapter 5 Government Actions in Markets & Global Markets in Action => Chapter 5 continues the theme of this chapter by exploring international trade and the effects on consumer surplus, producer surplus, and national welfare. It also examines the deadweight loss of government policies that limit trade, such as tariffs and import quotas.
7	Chapter 6 Households’ Choice => Chapter 7 uses marginal utility theory to derive the downward-sloping demand curve introduced in Chapter 2 (and used throughout Chapters 4 to 7). Utility theory will also further explain the factors that change demand. Consumer surplus has been used in multiple chapters and will be reinforced in this chapter to help explain the diamond-water paradox and the difference between total utility and marginal utility.Marginal analysis is used in this chapter to describe marginal utility and the utility maximizing choice for consumers. The importance of marginal analysis will be reinforced in future chapters as we move through profit maximization and choice making in factor markets.
8	Chapter 7 Output and Costs = > This chapter has explained how the firm’s output decision affects its costs when the firm allocates its factors of production efficiently in the short run and in the long run. The student sees how establishing short-run productivity and cost measures and understanding how they are related reveals how a firm can predict how its costs will change with the level of output. This relationship helps firm managers make profitable output decisions in the short run and make commitments to efficient plant size in the long run.
9	Chapter 8 Perfect Competition = > Chapter 8 is the first of four chapters that explore the price and output decisions of firms under various market characteristics. Chapter 8 studies perfect competition, Chapter 9 studies monopoly, Chapter 10 studies monopolistic competition, and Chapter 11 studies oligopoly. All four chapters use cost curves, marginal analysis, and the concept of efficiency.
10	Chapter 9 Monopoly= > Chapter 9 explains how a firm with monopoly power makes those same decisions. Chapter 9 evaluates the efficiency of monopoly relative to perfect competition. It also covers regulation of a natural monopoly.
11	Chapter 10 Monopolistic Competition = > Chapter 10 continues the general analysis of the firm’s output and price decision by examining the case of monopolistic competition.
12	Chapter 11 Oligopoly = > Chapter 12 now wraps up the analysis of the firm’s output and price decision by examining oligopoly. The chapter examines various approaches to studying firm behavior in oligopoly and is the last of the chapters that focus on the theory of the firm.
13	Chapter 12 Market Failure and Government = > Chapter 12 continues the analysis by studying the inefficiencies that result when private markets produce mixed goods with external costs and allocate common resources. It also considers methods that can be used to fix the misallocation.
14	Chapter 13 Factor Markets, Inequality, and Uncertainty = > Chapter 14 explores the workings of factor markets and the resulting distribution of income. The labor, capital, and natural resource markets are introduced here and Chapter 14 studies the implications of factor market equilibrium for the distribution of income and trends in the distribution.

Prerequisite(s):	No
Textbook(s):	Foundation of Microeconomics Robin BADE, Michael PARKIN, 8th Edition, 2023
Additional Literature:
Laboratory Work:	No
Computer Usage:	Smart Board (If Available)
Others:	No

COURSE LEARNING OUTCOMES

1

Upon successful completion of the course a student will be able to: Understand how households (demand) and businesses (supply) interact in various market structures to determine price and quantity of a good produced. Identify how different changes in the determinants of supply and demand affect price and quantity in a model of perfect competition. Apply the model of perfect competition to predict the price, output, and welfare implications of several public policy interventions, including taxation, minimum wages, and rent control. Interpret the meaning of marginal revenue and marginal cost and their relevance for firm profitability. Understand the major characteristics of different market structures and the implications for the behavior of producers.

COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES (Blank : no contribution, 1: least contribution ... 5: highest contribution)

No	Program Competencies	Cont.
Bachelor in Banking and Finance (3 years) Program
1	The students gain the ability to look at the problems of daily life from a broader perspective with an increased awareness of the importance of moral/ethical considerations and professional integrity in the workplace.	3
2	They develop their knowledge and understanding of banking and finance including concepts, theories, and analytical tools that serve both in national and international markets.	3
3	They gain an understanding of the role of financial management in business firms and the essentials of corporate finance and further develop their knowledge in the field.	1
4	They are able to apply valuation models to estimate the price of different financial assets, measure risk and describe the risk-return tradeoff.	1
5	They are provided with the knowledge and understanding of the regulatory framework and functioning of banking system and central banking as well as international banking system.	1
6	They are able to understand and use fundamental economic theories and tools to solve economic problems in banking and financial services industry.	2
7	They have the ability to develop and utilize accounting, financial and economic data as well as other information to solve different business problems by making use of basic mathematical and statistical models.	3
8	They are expected to develop their numerical and IT skills as well as knowledge of databases in order to address the significant development in the delivery and use of financial services known as FinTech.	1
9	They develop their ability to think critically, do research, analyze, interpret, draw independent conclusions, and communicate effectively, both individually and as part of a team.	4
10	They are provided with opportunities to acquire the necessary skills and competencies to develop professionalism in the banking and financial services industry or to move on to further study within the discipline.	2

COURSE EVALUATION METHOD

Method	Quantity	Percentage
Homework	1	5
Midterm Exam(s)	1	20
Quiz	1	5
Final Exam	1	60
Attendance		5
Other	1	5
	Total Percent:	100%

ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)

Activities	Quantity	Duration(Hours)	Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours)	16	3	48
Hours for off-the-classroom study (Pre-study, practice)	10	2	20
Mid-terms	1	15	15
Assignments	2	7.5	15
Final examination	1	15	15
Other	1	12	12
Total Work Load:			125
Total Work Load/25(h):			5
ECTS Credit of the Course:			5

CONCLUDING REMARKS BY THE COURSE LECTURER

All is well.