Economics: Intermediate Microeconomic Analysis
Nationalekonomi: Mikroekonomisk analys

EXTA95, 7.5 credits, G1 (First Cycle)

Valid for: 2025/26
Faculty: Faculty of Engineering LTH
Decided by: PLED I
Date of Decision: 2025-03-28
Effective: 2025-05-05

General Information

Depth of study relative to the degree requirements: First cycle, in-depth level of the course cannot be classified
Elective mandatory for: Pi2
Elective for: F4, I2
Language of instruction: The course will be given in English on demand

Aim

The aim of the course is to give the student a well balanced overview of microeconomic theory and its central issues and problems and a sound knowledge base for further studies in economics.

In particular, the course aims at creating an understanding of the functioning of markets, of how producers and consumers make their decisions and of how economic agents gains or loses from government intervention (regulations, taxes, subsidies etc.) of markets.

Learning outcomes

Knowledge and understanding
For a passing grade the student must

• understand and be able to describe the underlying principles guiding optimal individual consumption decisions,
• understand and be able to describe the underlying principles guiding optimal individual consumption decisions under uncertainty,
• understand and be able to describe the underlying principles guiding the optimal production decisions by firms in both the short run and the long run,
• understand and be able to describe the underlying principles behind general equilibrium in an exchange economy,
• understand the basic problems faced by a monopolist in terms of pricing and price discrimination,
• understand simple instances of quantity competition (the Cournot model).

Competences and skills
For a passing grade the student must

• be able to formulate and solve the utility maximisation and expenditure minimisation problems faced by an individual,
• formulate and solve the cost minimisation and profit maximisation problems faced by a firm,
• analyse the basic problems faced by a monopolist in terms of pricing and price discrimination,
• analyse simple instances of quantity competition (the Cournot model),
• describe and explain their analyses and conclusions clearly orally as well as in writing.

Judgement and approach
For a passing grade the student must

• be able to pursue further studies in the subject and to search for and evaluate information with a high degree of independence.

Contents

The course deals primarily with economic decision making concerning consumption and production. The course starts with a treatment of the underlying principles that guide an individual's optimal consumption decisions under both certainty and uncertainty. This treatment leads to the utility maximisation and expenditure minimisation problems faced by an individual which, in turn, determine individual demand. Next, there is a treatment of the underlying principles guiding the optimal production decisions by firms in both the short run and the long run. This treatment leads to the cost minimisation and profit maximisation problems faced by a firm which, in turn, determine firm supply. There is also a treatment of general equilibrium in a simple exchange economy, and a treatment of the problems faced by a monopolist in terms of pricing and bundling ("price discrimination"). The course is concluded by an extension of the monopolist's problem to the Cournot model.

Examination details

Grading scale: TH - (U, 3, 4, 5) - (Fail, Three, Four, Five)
Assessment:

Examination: The examination consists of a written exam and home assignments. The written exam takes place at the end of the course. There will be further opportunities for examination close to this date. Points from home assignments are vaild for examinations taken the same term. Grading is according to the LTH scale (failed, 3, 4, 5). 5: 85–100%, 4: 65–84%, 3: 50–64%, U: 0–49%.

The examiner, in consultation with Disability Support Services, may deviate from the regular form of examination in order to provide a permanently disabled student with a form of examination equivalent to that of a student without a disability.

Modules
Code: 0124. Name: Economics: Intermediate Microeconomic Analysis.
Credits: 7.5. Grading scale: TH - (U, 3, 4, 5).

Admission

Assumed prior knowledge: FMAB65 Calculus in One Variable B1, FMAB70 Calculus in One Variable B2, FMAB20 Linear Algebra and FMAB30 or FMAB35 Calculus in Several Variables.
The number of participants is limited to: No
Kursen överlappar följande kurser: GEMA35 TEK115 TEK116

Reading list

• Additional material.
• Nicholson, W. och Snyder, C: Microeconomic Theory. Cengage Publishing, 2016. 12th Edition.

Contact

Course coordinator: Davide Pietrobon, davide.pietrobon@nek.lu.se
Course coordinator: Sarah Rosenberg, sarah.rosenberg@nek.lu.se
Course homepage: https://www.nek.lu.se