Microeconomics, Group D 2

Economics in general, and microeconomics in particular, are about the allocation of scarce ressources. We investigate, how consumers optimally decide about consumption given a limited budget, and how profit maximizing firms decide on production, given a certain production technology. From this we derive market demand and market supply and determine a market equilibrium. Students shall become acquaintant with basics of decision theory, and will be introduced to welfare economics, i.e. will be enabled to normatively analyze market outcomes in the partial equilibrium framework. Decision theory and partial equilibrium analysis are the basics not only for microeconomics and its applications (industrial organization, economic policy, macroeconomics, competition policy, market regulation...) but also for finance and managerial economics.