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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: Assoc.Prof.Dr. Nargiza Alymkulova nalymkulova@epoka.edu.al , Monday 13:00-16:00
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 International Marketing and Logistics Management (3 years)
Classroom and Meeting Time: E-311, Monday, 08:40-11:30
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 main goal of this course is to show how microeconomic models can be used to guide business decisions. We will study the behavior of consumers and firms, and their implications to demand, supply and market equilibrium. The student who successfully completes this course should be able to apply microeconomic analysis to issues of real world interest both within and beyond the area of business.
BASIC CONCEPTS OF THE COURSE
1 Microeconomics: the allocation of scarce resources
2 Marginal utility and demand
3 Diminishing returns and supply
4 Elasticity of demand, demand elasticity and revenue; cross-price elasticity of demand;
5 Elasticity of supply
6 The concept of budget constraint, marginal rate of transformation
7 Constrained consumer choice, marginal rate of substitution; Engel curve
8 Behavioral economics
9 Forms of competition (Perfect competition, Monopoly, Price discrimination, Monopolistic competition, Oligopoly )
10 Production decisions and economic profit; Market structures and externalities.
COURSE OUTLINE
Week Topics
1 Introduction & Syllabus Review: An introduction of each topic which will be lectured during the semester weeks, also the material needed and the requirements to succeed the course. What is microeconomics? Microeconomics focuses on the study of individual decisions (consumer, firms) and markets of individual goods and services. Models and uses of microeconomic models to be discussed. (Ch. 1, pp. 31-62).
2 Demand and Supply. To analyze questions concerning the price and quantity responses to the introduction of new products or technologies, new government regulations or taxes, or other events, economists may use the supply-and-demand model. In this lecture, we refer to the case for how did the economy respond to the Covid-19 pandemic? How did the use of scarce resources change? The demand and supply model answers questions like these? This model that we will study about the main tool of economics. It explains how prices are determined and how they guide the use of resources to influence What, How, and For Whom goods and services produced? At the end of the lecture, we will look at the market for hand sanitizer – an item massively influenced by Covid-19. (Ch. 3, pp. 89-116)
3 Elasticity. When Covid-19 hit the world, the demand for face masks, hand sanitizers, ventilators, and a host of other items surged, we know that an increase in demand brings a rise in the price. But how much will the price of these items rise? To answer this and similar questions, we will use the tool that we will study in this lecture: elasticity. We will use the concept of elasticity to look at the market for face masks during the Covid-19 pandemic. We will calculate and explain the factors that influence the price elasticity of demand and supply, income elasticity, and cross elasticity of demand. (Ch.4, pp. 117-138)
4 Efficiency and equity. In this lecture, we will examine the efficiency and fairness of alternative ways of allocating scarce resources; look at the connection between demand and marginal benefit, define consumer surplus and study the connection between supply and marginal cost and define producer surplus. Furthermore, examine the conditions under which markets are efficient and inefficient; look at the main ideas about fairness and evaluate claims that markets result in unfair outcomes. (Ch. 5, pp. 139-160)
5 Perfect Competition. In this lecture we look at a competitive market structure, one in which many firms produce identical products and firms can easily enter and exit the market. Because each firm produces a small share of the total market output and its output is identical to that of other firms, each firm is a price taker that cannot raise its price above the market price. If it were to try to do so, this firm would be unable to sell any of its output because consumers would buy the good at a lower price from the other firms in the market. The market price summarizes all a firm needs to know about the demand of consumers and the behavior of its rivals. Thus, a competitive firm can ignore the specific behavior of individual rivals in deciding how much to produce. (Ch. 12, pp. 305-330).
6 Monopoly. In this lecture, we study markets dominated by one big firm. We call such a market monopoly. The performance and the efficiency of monopoly will be examined and we will compare it with perfect competition. (Ch. 13, pp. 331-356). Quiz
7 Monopoly. In this lecture, we study markets dominated by one big firm. We call such a market monopoly. The performance and the efficiency of monopoly will be examined and we will compare it with perfect competition. (Ch. 13, pp. 331-356).
8 Midterm exam
9 Monopolistic competition. Most real-world markets are competitive but not perfectly competitive, because firms in these markets have some power to set their prices, as monopolies do. This is what we call a market of monopolistic competition. In this lecture, we will examine what is monopolistic competition. Explain how a firm in this type of market determines its price and output in the short run and the long run. Furthermore, we will look at why advertising costs are high and why firms in monopolistic competition use brand names. (Ch. 14, pp. 357-374).
10 Oligopoly. Oligopoly, like monopolistic competition, lies between perfect competition and monopoly. The firms in oligopoly might produce an identical product and compete only on price, or they might produce a differentiated product and compete on price, product quality, and marketing. In this lecture, the game theory will be studied to explain how price and output are determined in oligopoly. (Ch. 15, pp. 375-400).
11 Market Failure and Government: Public choices and public goods. All economic choices are made by individuals, but some choices are private and some are public. In this lecture, we will study why some choices are public and how they are made in a political marketplace; examine how the free rider problem arises and how the quantity of public goods is determined. (Ch. 16, pp. 403-411).
12 Market Failure and Government: Externalities. In this lecture, we will study what is an externality; explain how externalities arise; why external costs bring market failure and overproduction, and how property rights and public choices might achieve an efficient outcome; explain why external benefits bring market failure and underproduction; and public choices might achieve an efficient outcome. (ch. 17, pp. 425-450). Quiz.
13 Group presentations.
14 Group presentations. Review.
Prerequisite(s): Introduction to Economics
Textbook(s): Bade, R., Parkin, M. (2023). Microeconomics, Global edition, 14th edition, Pearson.
Additional Literature: Mankiw, G. (2023). Principles of Microeconomics. Cengage Learning, 10th Edition.
Laboratory Work: NA
Computer Usage: Internet during class
Others: No
COURSE LEARNING OUTCOMES
1 At the end of the course, students should be able to understand fundamental microeconomic concepts and principles.
2 To be able to understand and apply the main elements and techniques of microeconomic theory;
3 Capability to solve and interpret stylized problems based on microeconomic models;
4 Capability to use these models to analyze real-world microeconomic phenomena and to evaluate issues of microeconomic policy.
COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES
(Blank : no contribution, 1: least contribution ... 5: highest contribution)
No Program Competencies Cont.
Bachelor in International Marketing and Logistics Management (3 years) Program
1 Identify activities, tasks, and skills in management, marketing, accounting, finance, and economics. 5
2 Apply key theories to practical problems within the global business context. 4
3 Demonstrate ethical, social, and legal responsibilities in organizations. 4
4 Develop an open minded-attitude through continuous learning and team-work. 5
5 Use technology to enable business growth and sustainability. 5
6 Synthesize creativity needed for marketing notion with scientific method and numerical skills, for achieving business sustainability. 5
7 Apply the concepts and structures of modern marketing in global context at private and public sectors. 4
8 Integrate the management of logistics, supply chain and in total operations with corporate goals and strategies. 4
COURSE EVALUATION METHOD
Method Quantity Percentage
Midterm Exam(s)
1
25
Presentation
1
10
Quiz
2
5
Final Exam
1
35
Attendance
5
Other
1
15
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) 16 2 32
Mid-terms 1 15 15
Assignments 0
Final examination 1 15 15
Other 2 7.5 15
Total Work Load:
125
Total Work Load/25(h):
5
ECTS Credit of the Course:
5
CONCLUDING REMARKS BY THE COURSE LECTURER

Interaction during class discussions (Other): students are expected to actively participate in the discussions, problem solving exercises. In this line, problems which we did not solve in class can be delivered and submitted in written form before the beginning of the next week class. Therefore, it is great opportunity for the students to get some points. Quizzes: There will be quizzes after each chapter which will be conducted online and consist of multiple-choice questions. However, the aim of the quiz is to check the knowledge of what you learnt and there are no grades for them. Online quizzes will not be graded. There will be two physical quizzes, which will consist of multiple choice questions, open ended and exercises. Exams: The midterm and final exams are all closed-book exams. They will consist of open ended. multiple choice questions and exercises. Only pens, pencils, erasers, and calculators are allowed to use during exam sessions. Students not paying close attention during classes (talking on irrelevant themes, students distracted from class by using mobile phones/any electronic gadgets, and preparing for other classes) will be considered as being absent.
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