Students will learn methods of microeconomic analysis at a higher level of generality and rigor, and will be able to deal with behavior of households and firms under perfect competition, meaning that none of them has price-setting power. With this course, students will learn how to describe the optimal individual decision making, leading to individual demand and supply functions, and assuming “ideal” conditions, how to aggregate over all firms and households, and to scrutinize the properties of a general competitive equilibrium. This course, together with other advanced courses offered, allows students to develop and pursue their own research agenda towards a successful completion of their Master’s theses.