LEARNING OUTCOMES The aim of the course is to provide students with basic knowledge about microeconomic models (demand and supply functions, market structures, consumers and producers’ choices, perfectly competitive markets and monopolistic markets), as well as about investment analysis (comparison and choice between investment alternatives, basing on the most used parameters like Present Worth, Internal Rate of Return and payback period).
KNOWLEDGE AND UNDERSTANDING Knowledge and understanding of the topics of the course will be developed mostly through active participation in didactic activities during classes.
APPLYING KNOWLEDGE AND UNDERSTANDING The ability to apply knowledge and understanding is developed by encouraging active participation of students to classes, by questioning students during classes, by flipped classroom situations and by facilitating educational conversations.
MAKING JUDGEMENTS The ability to make judgments on the topics of the course will be developed through theoretical and practical classes and by involving students in analysing the results obtained in simulations and exercises.
COMMUNICATION SKILLS Communication skills, acquired knowledge and ability to make judgments on the topic of the course will be tested through the exam. During exams, students will face theoretical as well as practical questions.
LEARNING SKILLS: Learning skills will be sustained by the teacher with the possibility of having appointments in which students can ask questions to solve doubts – both theoretical and practical – coming from individual study.
Microeconomics • use of microeconomic theory; positive and normative economic analysis; why to study microeconomics; what is a market • market mechanism; demand and supply curves; elasticity, both in the short and in the long run • consumer’s preferences, utility function, budget line and consumer’s optimal choice • production function, production isoquant, production in the short and in the long run • cost structures in the short and in the long run and their determinants, optimal production choice • profit maximization, marginal revenues and marginal costs, conditions for a perfectly competitive market • average and marginal revenues in a monopolistic market, production decision making in a monopolistic market
Investment analysis • time value for money, interest and interest rate, simple and compound interests • nominal and effective interest rates • economic equivalence and financial factors • difference between investments and loans, investment projects, investment alternatives • the “not to invest” alternative and the MARR • choice between investment alternatives: PW, AE, FW, IRR, payback period
Lecture notes and practical classes are integral part of the program, as well as elements coming from discussions during classes. Please note that lecture notes do not cover the program, but are meant to integrate and complete what is explained on suggested textbooks.