Business Economics Syllabus
Economics Program – FAE Business School, 2026/1
General Information
| Program | Economics |
| Course | Business Economics (Economia Empresarial) |
| Workload | 72 class-hours (15 thematic sessions + exams) |
| Schedule | Tuesdays, 7:00 PM – 10:00 PM |
| Tools | Excel (primary), R and Python (supplementary) |
| Semester | 2026/1 |
| Instructor | Rodrigo Hermont Ozon |
| Contact | GitHub | LinkedIn | Lattes |
Course Description
Business Economics equips students with the analytical tools to understand demand formation, supply behavior, and market dynamics by integrating traditional microeconomic theory with contemporary approaches from economic complexity and network economics.
The course combines solid theoretical foundations — consumer theory, production theory, cost analysis, and market structures — with practical applications that connect microeconomics to real-world business decisions.
ImportantWhat Makes This Course Different
The course opens with economic complexity and network economics (Hidalgo & Hausmann, Coase, Penrose) before diving into traditional microeconomic theory. This allows students to understand markets as interconnected systems from the very beginning. At the end, the study of oligopolies and digital platforms closes the loop, connecting theory and practice in the context of contemporary markets.
Learning Objectives
- Understand the firm as an economic unit and its role within interconnected markets
- Analyze demand formation through consumer theory and its determinants
- Interpret elasticities and apply them to pricing strategies
- Understand production theory and the formation of business costs
- Derive supply curves from cost analysis
- Analyze different market structures and their competitive implications
- Apply concepts of economic complexity and network economics to business analysis
- Develop basic quantitative analyses in R or Excel for managerial practice
Competencies Developed
- Critical analysis of markets and competitive structures
- Understanding of price and equilibrium quantity determinants
- Application of elasticity concepts for pricing decisions
- Cost analysis and productive efficiency assessment
- Identification of market power and competitive strategies
- Systemic view of markets as interconnected networks
- Evidence-based economic communication and argumentation
Course Content
Block I – Demand and Equilibrium (Sessions 1–6) \(\rightarrow\) Exam 1
The Firm, Markets, and Networks
- The concept of the firm and economic decision-making (Coase, Penrose)
- Markets as interconnected networks
- Introduction to the Atlas of Economic Complexity
Economic Complexity and Capabilities
- Hidalgo & Hausmann’s framework
- Product space and revealed comparative advantages
- The Brazilian case: commodity exports and productive diversification
Consumer Theory and Demand Formation
- Preferences and indifference curves
- Cardinal and ordinal utility; marginal utility
- Budget constraint and optimal consumer choice
- Income and substitution effects
- Types of goods: normal, inferior, Giffen, substitutes, and complements
- Discussion: how do digital platforms exploit revealed preferences?
Elasticities and Pricing Applications
- Price elasticity of demand
- Income elasticity and cross-price elasticity
- Elasticity–revenue relationship
- Applications in dynamic pricing
Market Equilibrium and Welfare
- Supply and demand: price and quantity determination
- Consumer and producer surplus
- Allocative efficiency and social welfare
Block II – Production, Costs, and Market Structures (Sessions 8–14) \(\rightarrow\) Exam 2
Production Theory
- Production function: definition and representation
- Short run: total, average, and marginal product
- Law of diminishing marginal returns
- Long run: isoquants and MRTS
- Returns to scale and the connection to capabilities
Cost Theory and Supply Formation
- Concepts: fixed, variable, total, average, and marginal costs
- Isocost lines and cost minimization
- Short-run and long-run cost curves
- Economies of scale and scope
- Derivation of the supply curve
Market Structures
- Perfect competition: characteristics and equilibrium
- Monopoly: market power, profit maximization, price discrimination
- Antitrust policy: CADE and competition defense in Brazil
- Oligopoly: Cournot and Bertrand models, introduction to game theory
Network Economics and Digital Platforms
- Network externalities
- Lock-in effects and switching costs
- Winner-takes-all markets
- Cases: Google, Uber, iFood, and digital platforms
Class Schedule – 2026/1
TipNote
Schedule subject to changes during the semester. Associated deliverables will be detailed in class.
| Nr. | Date | Scheduled Content |
|---|---|---|
| 1 | Tue 02/24/2026 | Introduction: The Firm, Markets, and Networks. Coase and Penrose. Markets as interconnected networks. Atlas of Economic Complexity – why economists need to understand linkages |
| 2 | Tue 03/03/2026 | Economic Complexity and Capabilities. Hidalgo & Hausmann: product space, revealed comparative advantages. Brazilian case: commodity exports and productive diversification |
| 3 | Tue 03/10/2026 | Consumer Theory I: Preferences, cardinal and ordinal utility, indifference curves. Discussion: how do digital platforms exploit revealed preferences? |
| 4 | Tue 03/17/2026 | Consumer Theory II: Budget constraint, optimal choice. Income and substitution effects. Normal, inferior, Giffen goods; substitutes and complements |
| 5 | Tue 03/24/2026 | Elasticities and Pricing: Price, income, and cross elasticities. Elasticity–revenue relationship. Dynamic pricing applications |
| 6 | Tue 03/31/2026 | Market Equilibrium and Welfare: Supply \(\times\) Demand, price formation, consumer and producer surplus. Allocative efficiency |
| 7 | Tue 04/07/2026 | Brief review of sessions 1–6. Preparation for Exam 1 |
| Tue 04/14/2026 | Exam 1 (P1) | |
| Tue 04/21/2026 | Holiday – Tiradentes (No class) | |
| 8 | Tue 04/28/2026 | Production Theory – Short Run: Production function, total, average, and marginal product. Law of diminishing marginal returns |
| 9 | Tue 05/05/2026 | Production Theory – Long Run: Isoquants, MRTS, returns to scale. Connection to capabilities: what allows a firm to scale? |
| 10 | Tue 05/12/2026 | Cost Theory I: Fixed, variable, total, average, and marginal costs. Isocost and cost minimization |
| 11 | Tue 05/19/2026 | Cost Theory II and Supply: Short-run and long-run cost curves. Economies of scale and scope. Derivation of the supply curve |
| 12 | Tue 05/26/2026 | Perfect Competition: Characteristics, production decisions, short-run and long-run equilibrium. Discussion: does perfect competition exist in practice? |
| 13 | Tue 06/02/2026 | Monopoly and Market Power: Profit maximization, deadweight loss, price discrimination. Cases: CADE and competition defense in Brazil |
| 14 | Tue 06/09/2026 | Oligopoly, Network Economics, and Platforms: Cournot, Bertrand, game theory. Network externalities, lock-in, winner-takes-all (Google, Uber, iFood) |
| Wed 06/10/2026 | Exam 2 (P2) | |
| 15 | Tue 06/23/2026 | Exam 2 feedback and brief review for Exam 3 |
| Tue 06/30/2026 | Exam 3 (P3) – Make-up/Final | |
| Wed 07/01/2026 | No class – Deadline for P3 grade submission |
Methodology
The course is delivered through dialogued lectures combined with practical activities:
- Theoretical exposition of fundamental concepts with visual support
- Real-world case studies from the Brazilian and international context
- Problem-solving exercises and applied practice
- Quantitative applications in R or Excel (supplementary)
- Group debates on market structures and competition
- Analysis of digital platforms and contemporary markets as a connecting thread
The approach emphasizes connecting microeconomic theory with practical applications, using examples from real companies and markets. Active participation and critical thinking are highly valued.
Assessment Criteria
| Component | Weight |
|---|---|
| Exams (P1 and P2) | 60% |
| Applied study guides (exercise lists) | 40% |
ImportantExam 3 (P3) – Make-up/Final
P3 is a make-up/final exam, per FAE Business School institutional regulations. Content covers the entire semester.
Assessment Breakdown
| Exam | Content | Date | Composition |
|---|---|---|---|
| P1 | Sessions 1–6 | 04/14/2026 | 60% exam + 40% exercise lists (applied study guide for P1) |
| P2 | Sessions 8–14 | 06/10/2026 | 60% exam + 40% exercise lists (applied study guide for P2) |
| P3 | All content | 06/30/2026 | Make-up/final per institutional regulations |
References
Core Textbooks
- Mankiw, N. G. (2021). Principles of Microeconomics. 4th ed. (Brazilian edition). Cengage Learning.
- Pindyck, R. S., & Rubinfeld, D. L. (2014). Microeconomics. 8th ed. Pearson.
- Vasconcellos, M. A. S., & Braga, M. B. (2023). Economia Micro e Macro. 7th ed. Atlas.
Complementary References
- Varian, H. R. (2015). Intermediate Microeconomics: A Modern Approach. 9th ed. GEN Atlas.
- Nicholson, W., & Snyder, C. (2019). Microeconomic Theory: Basic Principles and Extensions. Cengage Learning.
- Baye, M. R. (2010). Managerial Economics and Business Strategy. 6th ed. AMGH.
- Mankiw, N. G. (2019). Principles of Economics. 8th ed. Cengage Learning.
- Rossetti, J. P. (2016). Introdução à Economia. 21st ed. Atlas.
- Gremaud, A. P., Pinho, D. B., & Vasconcellos, M. A. S. (2017). Manual de Economia. 7th ed. Saraiva Uni.
Economic Complexity and Networks
- Hidalgo, C. A. (2021). Why Information Grows: The Evolution of Order, from Atoms to Economies. Basic Books.
- Hausmann, R., et al. (2014). The Atlas of Economic Complexity: Mapping Paths to Prosperity. MIT Press. Available at: atlas.cid.harvard.edu
- Coase, R. H. (1937). The Nature of the Firm. Economica, 4(16), 386–405.
- Penrose, E. T. (1959). The Theory of the Growth of the Firm. Oxford: Basil Blackwell.
- Kupfer, D., & Hasenclever, L. (2020). Economia Industrial. 3rd ed. GEN Atlas.
- Tirole, J. (1988). The Theory of Industrial Organization. MIT Press.
Online Resources
- Atlas of Economic Complexity (Harvard Growth Lab)
- Observatory of Economic Complexity (OEC)
- CADE – Administrative Council for Economic Defense
- IPEA – Institute for Applied Economic Research
Student Profile Questionnaire
- Fill out the form here! (link to be updated)
NoteAbout the Instructor
Rodrigo Hermont Ozon – Economist (UFPR) and Mathematician (UNESPAR/FaFi), with a Master’s in Economic Development (UFPR) and doctoral candidate in Production Engineering and Systems (PUCPR). Researches multi-objective portfolio optimization, financial econometrics, fuzzy multi-criteria decision-making, and applied artificial intelligence. Data Science consultant helping companies with data-driven decision-making. Professor at FAE Business School in the Data Science for Business, Economics, and Financial Markets programs.