Economics B: Microeconomics and Applications

The aim of the course is to provide more profound insights into economic theory. It starts with a short repetition of the basic elements in a market economy. Then, there is a discussion of how a consumer chooses his consumption and how a producer determines his production method (consumption and production theory, respectively). Then, the costs for a firm are explained (cost theory). Moreover, the equilibrium on a market is studied under different conditions and the welfare consequences of different equilibria and government interventions are analysed. The course ends with a survey of general equilibrium, market failures and decisions under uncertainty. Besides theoretical analyses, certain areas for application and examples will be discussed during the course.