Information Package / Course Catalogue
Advanced Microeconomics
Course Code: ECN505
Course Type: Area Elective
Couse Group: Second Cycle (Master's Degree)
Education Language: Turkish
Work Placement: N/A
Theory: 3
Prt.: 0
Credit: 3
Lab: 0
ECTS: 5
Objectives of the Course

The objective of the course is to provide students at advanced level with the sound understanding of microeconomic issues and functions by presenting the building blocks of microeconomic theory.

Course Content

Individual Demand Curve, Market Demand Curve, Market Supply Curve, Price and Income Elasticity, Consumer Preferences Indifference Curves, Utility Functions (Cobb-Douglas, CES), Convexity and Concavity in Utility Functions, Indirect Utility Functions, Indirect Expenditure Functions, Budget Line, consumer's equilibrium, Hicksian and Slutskian Income and Substitution Effects, Consumer Surplus, Some Applications, Isoquant Curves, Elasticity of substitution, Production in the Short-Run and Long-Run, Returns to Scale, Total, average and marginal costs Scale and Scope Economies, A Mathematical Treatment of Cost Theory, Theory of Perfect Competition, Output Decision in the Short-Run, The Efficiency of a Competitive Market, Minimum Prices and Wages, Monopoly Theory, Output Decision of Monopoly, Regulate of monopoly, Pricing with Market Power

Name of Lecturer(s)
Learning Outcomes
1.The skills in explaining the roles of economic agents
2.The skills in defining and interpreting economic systems, decision procedures and policies
3.The ability to use quantitative techniques to analyze microeconomic problems at advanced level
4.Establishment of background for advanced studies
5.To learn the working characteristics of different markets
Recommended or Required Reading
1.Eaton, Curtis B., Diane F. Eaton, and Douglas W. Allen (2002). Microeconomics (5th edition). Toronto: Prentice Hall.
2.Geoffrey A. Jehle and P.Reny (2001), Advanced Microeconomic Theory. Toronto: Prentice Hall.
3.Koutsoyinannis, A. (1998). Modern Microeconomics. Second Edition, Mc Millan.
4.Pyndyck, R and D. Rubinfeld (2009). Microeconomics. 7th ed., New Jersey: Pearson Education International.
Weekly Detailed Course Contents
Week 1 - Theoretical
Functions in Microeconomics 1. Convex functions 2. Concave functions 3. Hessian matrix and analysis of functions 4. Practice in Microeconomics
Week 2 - Theoretical
Demand and Supply 1. Individual Demand and its determinants 2. Market Demand 3. Individual Supply 4. Market Supply Curve 5. Market equilibrium (Marshallian and Walrassian equilibrium) 6.Changes in equilibrium
Week 3 - Theoretical
Elasticity 1. Concept of elasticity and definition 2. Demand elasticity 3. Income elasticity 4. Supply elasticity 5. Elasticity analysis for linear and non-linear demand functions
Week 4 - Theoretical
Consumption Theory 1. Utility analysis (cardinal and ordinal utility) 2. Consumer preferences and characteristics 3. Indifference curves 4. Utility functions 5. Budget constraint 7. Changes in budget constraint
Week 5 - Theoretical
Changes in Consumer Equilibrium 1. Consumer equilibrium and optimization 2. Engel Curve 3. Income and Substitution Effects 4. Practice in Microeconomics
Week 6 - Theoretical
Production Theory 1. Production in the short-run 2. Analysis of Production stages 3. Production in the long-run 4. Isoquant Curves
Week 7 - Theoretical
Production Theory 1. Substitution elasticity 2. Economies of Scale 3. Production functions and analyses 4. Practice in Microeconomics
Week 8 - Theoretical
Cost Theory 1.Short-run production costs and firm equilibrium 2. Long-run production costs and firm equilibrium 3.Scale economies 4. Scope economies 5. Learning curve
Week 9 - Intermediate Exam
Midterm Examination
Week 10 - Theoretical
Cost functions 1.Characteristics of cost functions 2.Cobb-Douglas Cost function 3. Translog cost function 4. Sepherd’s Lemma and cost functions
Week 11 - Theoretical
Theory of Perfect Competition 1. Revenue curve of firms 2. Output Decision in the Short-Run 3. Firm’s Short-Run Supply Curves 4. Market Short-Run Supply curve and Equilibrium 5. Output Decision in the Long-Run 6. The Industry Long-Run Supply Curve
Week 12 - Theoretical
The equilibrium in the perfect competition market and efficiency 1. The existence of competitive equilibrium and stability 2. The Efficiency of a Competitive Market 3. Minimum Prices and Wages 4. Price Supports and Production Quotas 5. The Impacts of Tax and Subsidies 6. Practice in Microeconomics
Week 13 - Theoretical
Monopoly Theory 1. Source and feature of monopoly 2. Revenue curve in monopoly 3. Short-run profit analysis in monopoly 4. Long-run profit analysis in monopoly
Week 14 - Theoretical
Monopoly Theory 1. Natural Monopoly 2. Social cost of Monopoly 3. Regulation of monopoly (Price regulation and tax regulation)
Week 15 - Theoretical
Monopoly and Price discrimination 1. First-degree price discrimination 2. Second- degree price discrimination 3. Third-degree price discrimination 4. Price discrimination and welfare effects of third degree price discrimination 5. Practice in Microeconomics
Week 16 - Final Exam
Final Examination
Assessment Methods and Criteria
Type of AssessmentCountPercent
Midterm Examination1%30
Final Examination1%70
Workload Calculation
ActivitiesCountPreparationTimeTotal Work Load (hours)
Lecture - Theory140342
Individual Work140228
Midterm Examination123225
Final Examination128230
TOTAL WORKLOAD (hours)125
Contribution of Learning Outcomes to Programme Outcomes
PÇ-1
PÇ-2
PÇ-3
PÇ-4
PÇ-5
PÇ-6
PÇ-7
PÇ-8
PÇ-9
PÇ-10
PÇ-11
PÇ-12
PÇ-13
PÇ-14
PÇ-15
OÇ-1
3
5
4
2
4
2
OÇ-2
2
4
5
2
5
2
OÇ-3
3
3
4
1
4
2
OÇ-4
2
4
5
2
3
1
OÇ-5
2
3
4
2
3
2
Adnan Menderes University - Information Package / Course Catalogue
2026