Economics for Engineers

Course title: Economics for Engineers

Code: 3ФЕИТ09Л007

Number of credits (ECTS): 6

Weekly number of classes: 3+2+0+0

Prerequisite for enrollment of the subject: None

Course Goals (acquired competencies): This course is designed to provide an insight in the microeconomic principles underlying the introduction of competition, theory of firm, market models, as well as in the basic models of regulation of natural monopolies.

Total available number of classes: 180

Course Syllabus: Basic concepts from economics: microeconomics and macroeconomics. Basic concepts from market economics: Modeling of the consumption and production; Marginal production, Marginal cost; Producers’ revenue; Elasticity of supply; Market equilibrium, Global welfare and deadweight loss. Concepts from the theory of the firm:  Long run and short run approach; Costs. Types of electricity markets: Spot market, Forward contracts and forward markets, Future contracts and futures markets; Options; Contracts for difference. Competition: Why competition? Markets with imperfect competition and market power; Models of imperfect competition- need for protection of competition and regulation. Definition of network energy, with focus on electricity; Natural monopolies in the electricity sector. Regulatory approaches; Costs; Revenues; Return of capital investments and pricing of network services.

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