Methodological foundations of microeconomics. Theories of production and individual choice. Aspects of decision theory under certainty, risk and uncertainty. Introduction to game theory under complete and incomplete information. Perfect competition as a limiting case. General competitive equilibrium: existence and Pareto efficiency. Private information in markets. Basic auction theory. Adverse selection. Contract design in the context of moral hazard problems.

CILO-1: Identify the fundamental principles of microeconomics, including concepts such as supply and demand, market equilibrium, and elasticity. CILO-2: Discuss the impact of government policies, such as taxes and subsidies, on market outcomes and analyzing the trade-offs involved in policy decisions. CILO-3: Analyze the behavior of consumers and firms in different market structures, such as perfect competition, monopolistic competition, oligopoly, and monopoly. CILO-4: Apply different economic models, such as the neoclassical model, game theory, and behavioral economics, to analyze individual and firm behavior.