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Microeconomics provides an introduction to the methodology, perspective, analytical style, and main theoretical insights of economics as it applies to individual to organisations, industries, and markets. By way of introduction, the course starts with an investigation of what a firm is, and how firms evolve over time, and basic accounting notions of costs, revenue, profits, assets and liabilities. Then it moves to the methodology, concepts and theories from classical economics, such as efficiency, division of labor and gains from trade, consumer choice and demand, cost structure and supply, market equilibrium and elasticity of supply and demand, market structure and competition, welfare, labour markets, externalities and public policy (particularly issues related to climate change), and the economics of risk and information, The last part of the course introduces modern microeconomics such as transaction cost economics, agency theory, behavior theories of the firm, game theory. It concludes with a basic introduction to the concepts and insights from the economics of strategy which will serve both as a concluding element for the microeconomics course and as a preview of later courses in business administration and strategy.
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