Having participated in this module, students can describe the incentives and decision making processes of firms and consumers. Students can discuss how the decision making processes of market participants lead to the market equilibrium. Students are able to assess the impact of different market environments on the resulting market equilibrium and the welfare of an economy. Students can evaluate why certain market environments can imply market failure and why certain regulatory measures can be applicable. Students can evaluate the impact of different regulatory measures on the market equilibrium and the welfare of an economy. Students are able to discuss recent economic developments and are able to critically evaluate proposed policy measures in light of recent economic developments.

• Introduction to Economics
• The concept of utility
• Consumer demand
• Optimal output decision of firms
• Firm supply
• Impact of different cost structures of firms on their supply
• Market equilibrium
• Welfare of an economy
• The impact of different market environments on the market equilibrium and the welfare of an economy
• Monopolies, duopolies, cartels
• Taxes and subsidies
• External effects

• Pindyck, Robert S., Rubinfeld Daniel L.: Microeconomics, 2012, 8th edition, Pearson, Munich

5 ECTS-Credits x 30 hours = 150 hours, combined out of the following:

• Course attendance: 60 hours
• Preparation / homework / self-study: 20 hours
• Time for exercises and group work: 45 hours
• Exam preparation: 25 hours
• Exam time: 90 minutes

• Interactive classes
• Exercises
• Case studies