| TPPE27 | Economic Analysis: Economic Theory
, 6 ECTS-points /Ekonomisk analys: Ekonomisk teori/ Advancement level: B | |
| Aim: The purpose of this course is to provide an understanding of fundamental quantitative economic relationships within the firm as well as between the firm and its environment. On the one hand, the course comprises a positive analysis, i.e. descriptions of observed processes, and on the other, the course focuses on a normative or prescriptive approach, i.e. decision making based on available information and various economic objectives. An important aspect is to develop the ability to evaluate and apply quantitative methods when analyzing economic decision problems.Prerequisites: TEIE09 Financial Control Systems, TAMS15 Mathematical Statistics, first course, TATM13 Algebra III TATM35 Calculus, TAOP02 Introduction to Operations Research Course organization: The lectures are mainly concerned with the theoretical foundations of the areas covered. Exercises are devoted to problem solving.Course content: Methodology of Economic Analysis Economic modelling. Constrained optimization. Lagrangian techniques. Kuhn-Tucker optimization. Comparative statics. Theory of Consumers Indifference curves. Utility functions. Slutsky's equation. Price and income elasticities. Theory of Producers Linear production-economic systems. Input/Ourput Analysis. Optimal production. Characteristics of the production function. Iso-cost curves. Long-run and short-run problems. Homogeneous production functions. Market Theory Perfect competition. Pareto optimality. Monopoly. Monopolistic competition. Duopoly and oligopoly. Cournot and von Stackelberg models.Course literature: Grubbström, R W, Ekonomisk teori, Linköping 1996 Exempelsamling i Ekonomisk analys, Linköping 1997 | ||
| TEN1 | , 4 p. | |