Microeconomics (ECON 204)

2021 Fall
Faculty of Arts and Social Sciences
Alpay Filiztekin alpayf@sabanciuniv.edu, Mehmet Baç bac@sabanciuniv.edu, Ivan Lopez Cruz ilopezcr@sabanciuniv.edu,
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Formal lecture,Recitation
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Consumer theory and demand; production, costs and supply; analysis of market structure; welfare, market failures, imperfect information and the role of the government in a market economy.


Microeconomic analysis is the study of how societies control and organize the production and distribution of goods and services. In this course, we will attempt to explain how consumers, firms, and workers interact, why they behave in particular ways, and what the outcome of that behavior might be. Economists try to understand how and why the economy works. There is much that we already know, but there is also a great deal that we still don't understand. This makes economics an exciting subject, both to teach and to study.


  • On completion of the course, students are expected to a) Apply demand-supply analysis to study potential impacts of microeconomic policies (Price, regulations, quotas etc), b) analyze the decision process of firm behavior under competitive conditions, c) Analyze the basic assumptions about preferences and variables affecting derived consumer demand, d) identify why and when markets fail to produce socially desirable outcomes, e) use the welfare theorems, their assumptions and their informal proofs/intuition.


1. Understand the world, their country, their society, as well as themselves and have awareness of ethical problems, social rights, values and responsibility to the self and to others. 2

2. Understand different disciplines from natural and social sciences to mathematics and art, and develop interdisciplinary approaches in thinking and practice. 4

3. Think critically, follow innovations and developments in science and technology, demonstrate personal and organizational entrepreneurship and engage in life-long learning in various subjects; have the ability to continue to educate him/herself. 2

4. Communicate effectively in Turkish and English by oral, written, graphical and technological means. 5

5. Take individual and team responsibility, function effectively and respectively as an individual and a member or a leader of a team; and have the skills to work effectively in multi-disciplinary teams. 2

1. Possess sufficient knowledge of mathematics, science and program-specific engineering topics; use theoretical and applied knowledge of these areas in complex engineering problems. 2

2. Identify, define, formulate and solve complex engineering problems; choose and apply suitable analysis and modeling methods for this purpose. 1

3. Develop, choose and use modern techniques and tools that are needed for analysis and solution of complex problems faced in engineering applications; possess knowledge of standards used in engineering applications; use information technologies effectively. 1

4. Have the ability to design a complex system, process, instrument or a product under realistic constraints and conditions, with the goal of fulfilling specified needs; apply modern design techniques for this purpose. 1

5. Design and conduct experiments, collect data, analyze and interpret the results to investigate complex engineering problems or program-specific research areas. 1

6. Possess knowledge of business practices such as project management, risk management and change management; awareness on innovation; knowledge of sustainable development. 2

7. Possess knowledge of impact of engineering solutions in a global, economic, environmental, health and societal context; knowledge of contemporary issues; awareness on legal outcomes of engineering solutions; knowledge of behavior according to ethical principles, understanding of professional and ethical responsibility. 1

8. Have the ability to write effective reports and comprehend written reports, prepare design and production reports, make effective presentations, and give and receive clear and intelligible instructions. 1

1. Develop knowledge of theories, concepts, and research methods in humanities and social sciences. 5

2. Assess how global, national and regional developments affect society. 5

3. Know how to access and evaluate data from various sources of information. 2

1. Formulate and analyze problems in complex manufacturing and service systems by comprehending and applying the basic tools of industrial engineering such as modeling and optimization, stochastics, statistics. 1

2. Design and develop appropriate analytical solution strategies for problems in integrated production and service systems involving human capital, materials, information, equipment, and energy. 1

3. Implement solution strategies on a computer platform for decision-support purposes by employing effective computational and experimental tools. 1

1. Have an understanding of economics and main functional areas of management 5

2. Have a basic all-around knowledge in humanities, science, mathematics, and literature 2

3. Have a basic knowledge of law and ethics, awareness of social and ethical responsibilities 2

4. Work effectively in teams and environments characterized by people of diverse educational, social and cultural backgrounds 2

5. Demonstrate proficiency in oral and written communications in English 4

6. Pursue open minded inquiry and appreciate the importance of research as an input into management practice; thus, a.know how to access, interpret and analyze data and information by using current technologies b.use the results from analyses to make informed decisions 3

7. Use office softwares for written communication, presentation, and data analysis 1

8. Demonstrate awareness that business settings present different opportunities and challenges for managers due to environmental/contextual differences that arise in economic, political, cultural, legal-regulatory domains 5

1. Provide constructive analysis of economic phenomena at the national and international level, and interactions between the two. 5

2. Develop an understanding of organizations and institutions in the society as well as their influence on the economy. 5

3. Recognize how incentives shape the behavior of individuals and organizations. 5

4. Identify "economic" problems and propose alternative models and/or design and conduct research to provide viable solutions using theoretical tools and/or quantitative methods. 5

5. Communicate problems and solutions to managerial and policy decision-making units as well as to lay audiences. 3

1. Analyze global affairs from international relations and economics perspectives. 3

2. Demonstrate theoretical and practical knowledge of the international affairs. 3

3. Compete for increasing opportunities in careers within the newly emerging global institutions. 2

4. Evaluate the international political events and present their views and positions on international affairs with advanced oral and written skills. 1

1. Understand and follow changes in patterns of political behavior, ideas and structures. 2

2. Develop the ability to make logical inferences about social and political issues on the basis of comparative and historical knowledge. 2


  Percentage (%)
Final 40
Midterm 30
Homework 5
Other 25



Robert Frank Microeconomics and Behavior


Hal R. Varian, Norton, Intermediate Microeconimics, 8th edition