EVSNPMIB Microeconomics

School of Business Administration in Karvina
Winter 2025
Extent and Intensity
2/2/0. 6 credit(s). Type of Completion: zk (examination).
Teacher(s)
doc. Ing. Marian Lebiedzik, Ph.D. (lecturer)
prof. Mgr. Ing. Michal Tvrdoň, Ph.D. (lecturer)
Ing. Petra Chmielová, Ph.D. (seminar tutor)
Guaranteed by
prof. Mgr. Ing. Michal Tvrdoň, Ph.D.
Departament of Economics and Public Administration – School of Business Administration in Karvina
Contact Person: Ing. Eva Kotlánová, Ph.D.
Timetable
Thu 8:05–9:40 AULA
  • Timetable of Seminar Groups:
EVSNPMIB/01: Thu 9:45–11:20 A211, P. Chmielová
EVSNPMIB/02: Thu 11:25–13:00 AULA, P. Chmielová
EVSNPMIB/03: Wed 16:25–18:00 A111, P. Chmielová
Prerequisites
FAKULTA(OPF) && TYP_STUDIA(N) && FORMA(P)
The completion of the course does not require any conditions and subject can be registered independently of other subjects.
Course Enrolment Limitations
The course is only offered to the students of the study fields the course is directly associated with.

The capacity limit for the course is 180 student(s).
Current registration and enrolment status: enrolled: 139/180, only registered: 2/180
fields of study / plans the course is directly associated with
Course objectives
The Microeconomics course provides a systematic explanation of the behavior of economic entities and the functioning of markets under conditions of limited resources. It focuses on the theoretical foundations of microeconomic analysis, model creation, and the use of marginal and average variables in determining optimality and equilibrium. Students will learn about consumer theory, firm theory, and the analysis of production, costs, revenues, and profits in various market structures. Attention is paid to general equilibrium, efficiency, and the principles of welfare economics. The course further develops an understanding of the functioning of factor markets, investment decision-making, and risk issues. The final part focuses on market failures and the role of the state in addressing them. Emphasis is placed on analytical thinking, graphical interpretation of economic relationships, and the application of theoretical knowledge to practical economic situations.
Learning outcomes
Students understand the principles of microeconomics and their applications in solving decision-making problems of economic entities. Students can define the principles of consumer theory and apply them in the analysis of consumer behavior. Students can evaluate changes in consumer behavior when prices, income, or other external factors change. Students understand the concept of intertemporal choice and are able to analyze how consumers allocate their income and expenditure across different time periods. Students are familiar with the basic principles of business analysis and are able to identify the key factors that influence business decision-making processes. Students are able to analyze production functions in the short and long term, including understanding the relationship between inputs. Students can interpret alternative corporate objectives and explain how these objectives can influence the choice of technology and production strategy. Students can evaluate the impact of changes in input prices on corporate costs and formulate appropriate responses to changes in input prices as part of cost management. Students are familiar with the concept of profit in economics, including the difference between accounting and economic profit. Students will be able to identify and analyze various types of market failures, including imperfect competition, externalities, public goods, and asymmetric information, and understand their impact on market efficiency.
Syllabus

1. Theoretical introduction to microeconomics

The essence and subject matter of microeconomics. Basic methods and tools of economic analysis. Model creation. Functions. Average and marginal variables and their graphical representation. Equilibrium and determination of the optimum.

2.    Consumer theory

Consumer budget constraints. Intertemporal choice. Consumer demand theory. The impact of income changes. Engel's curve. Income elasticity of demand. Price elasticity of demand. Cross elasticity of demand and sum of elasticities. Substitution and income effects of price changes. Individual demand curve and market demand. Decision-making under uncertainty and risk.

3.    Technology choice and production

Theoretical introduction to production issues. Production functions in the short and long term. Isoquants and marginal rate of technical substitution. Cost minimization and finding the optimal combination of inputs. Consumer optimum. Economies of scale and the path of expansion. Alternative firm objectives and their causes.

4.    General equilibrium

Assumptions of the general equilibrium model. Edgeworth box diagram. Production and efficiency. Pareto efficiency.  Optimal selection of inputs by the firm. Contract curve and production possibility frontier. Opportunity costs. Firm's choice of product structure and efficiency. Exchange and efficiency. Production and consumption efficiency. Equilibrium and price system. Conflict between fairness and efficiency. Welfare economics and Arthur Cecil Pigou.

5.    Company revenues, costs, and profits

Revenue development in a perfectly competitive market. Revenues in an imperfectly competitive market. Company costs from a short-term perspective. Long-term company costs. The relationship between short-term and long-term costs. Profit and its concept in microeconomics.

6.    Choice of output by a company in a perfectly competitive market environment

Theoretical foundations of perfect competition. Decision-making by a perfectly competitive company on the level of output in the short term. Supply by a perfectly competitive company and industry in the short term. Company equilibrium. A firm's decision on output in the long run. Long-run supply of a perfectly competitive industry. Market equilibrium in the long run. Efficiency of a perfectly competitive market structure.

7.    Choice of output by a firm in a non-competitive market environment

Theoretical foundations of monopoly. Types of price discrimination. Theoretical foundations of oligopoly structure. Oligopoly models. Game theory and oligopoly models. Theoretical foundations of monopolistic competition. Monopolistic competition models.

8.    Factors of production markets

Microeconomic aspects of the labor market. Capital market. Consumer decision-making and the issue of indifference analysis. Investment and consumer decision-making. Investment decision-making in the absence of a capital market. Perfectly competitive capital market and consumer investment decision-making. Risk and uncertainty in the context of investment decision-making. Theoretical introduction to the issue of natural resources. Natural resources market.

9. Market failure and microeconomic policy of the state

Types of market failure. Imperfect competition. Externalities. Public goods. Asymmetric information. Income redistribution. 

Literature
    required literature
  • Turečková, K., Kotlánová, E., & Tuleja, P. (2017). Mikroekonomie pro navazující studium. Distanční studijní text. SU OPF.
  • Hořejší, B., Macáková, L., Soukup, J., & Soukupová, J. (2018). Mikroekonomie. Management Press
    recommended literature
  • Mankiw, N. G. (2016). Principles of Microeconomics. Cengage Learning.
Teaching methods
Lectures, seminars, working with texts, teamwork, group discussions and group problem solving, teaching using case studies.
Assessment methods
Grade

Written exam

Language of instruction
Czech
Further comments (probably available only in Czech)
Study Materials
The course can also be completed outside the examination period.
Teacher's information
Active participation in seminars min. 60% (10% of assessment), continuous assessment test (20% of assessment), combined exam (70% of assessment)

The course is also listed under the following terms Winter 2014, Winter 2015, Winter 2016, Winter 2017, Winter 2018, Winter 2019, Winter 2020, Winter 2021, Winter 2022, Winter 2023, Winter 2024.
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