Microeconomic theory
studies the allocation of scarce resources via markets. Economists
normally assume that individuals who participate in markets have well-defined preferences and
face known constraints, and that they rationally make choices that
lead the attainment of more preferred outcomes. Firms are assumed to
combine inputs to produce outputs in a profit-seeking fashion. We
develop our theory to explain how the actions of buyers and sellers in
a market determine the prices of goods and services and quantities
produced and sold. In microeconomics, our focus is often on a market
for a single good (rather than a broad aggregation of many goods).
Specific topics to be covered include: equilibrium in competitive, monopolistic,
and imperfectly competitive markets; assessment of the efficiency of market outcomes; the role of markets in
the provision of information; and market failures.
Students should gain an appreciation
of the role of markets in allocating goods and services and should be
able to apply microeconomic analysis to policy issues involving market
institutions. Warning! Economics is a theoretical subject. Although it
covers issues of relevance to individuals, firms and
policymakers, students should be prepared to accept a higher level of
"abstraction" than is encountered in some other classes.
Course
Policies
Calculus,
MATH 122 or 141, is a prerequisite for this class. I will
occasionally use calculus in class.
Students
are expected to attend classes in accordance with University
policies on attendance. "Absence from more than 10 percent of
the scheduled class sessions, whether excused or unexcused, is
excessive and the instructor may choose to exact a grade penalty for
such absences."
Please
arrive on time and stay until class ends.
Students
must take tests at the scheduled time. If you believe that an
emergency requires you to miss a test, contact me prior to taking
the test.
I will attempt to
keep up with the posted schedule in class. If I fail to cover the
indicated material by a schedule test date, the test WILL take place
as scheduled, but the coverage of the test will be adjusted. You will
need to check the Aplia web site regularly and complete assignments
when they are due. The Aplia web site provides a schedule of
assignments. You are permitted
to discuss Aplia assignments with classmates and you may give and
receive help in the form of discussion and explanation; however
you are NOT permitted to exchange answers to quizzes.Please
bring a pencil with an eraser for each test. Calculators that
perform basic arithmetic operations are permitted. Programmable
calculators (or other devices) and calculators with any information storage capabilities
are NOT permitted. You may not access cell phones during a test and
you may not use a cell phone as a calculator.
If you believe
that an error has been made in grading your test, you may return the
test to me with a written request describing the grading issue you are
concerned with. When tests are regraded, the entire test will be
reviewed, with lower as well as higher grades possible on all
portions. Requests to have a grade reviewed must be made within one
week of the date tests are returned in class.
Please power off cell phones in
class.
Grading
and Course Requirements Grades are determined according to the following
weights:
| Graded
Item |
Weight |
| 3
tests @ 20% |
60% |
|
Aplia Assignments* |
15% |
| Final Exam
(Comprehensive)** |
25% |
| Total |
100% |
*Aplia scores will be
adjusted at the end of the semester -- highest student score will receive 100%;
others will receive a percentage equal to the fraction of (1) the
highest score, or (2) a lower threshold level that I set later in
the semester.
**Students with a 90 average or better on Tests and all Aplia
assignments will exempt the final exam with a
grade of "A" so long as they attend all classes and
complete all assignments due after Test
3 is taken. No exemptions for anyone else.
Overall Grade
Determination: The grading scale is provided below. You are
guaranteed a grade at least as high as the one indicated by this schedule. I do not change the
grading scale ex post upon requests from students, but I reserved
the right to make small changes in the scale in a direction of
greater leniency.
| Grade
Average (%) |
Letter
Grade |
| 90 -100 |
A |
| 80
- 90 |
B+ |
| 70
- 80 |
B |
| 65
- 70 |
C+ |
| 60
- 65 |
C |
| 55
- 60 |
D+ |
| 50
- 55 |
D |
| Below
50 |
F |
Note: If
you attend class and put effort into the Aplia assignments, you
should do well in this class!
Course
Outline and Schedule
Test dates will not change; however, topics covered on each test are
subject to change depending upon progress made in class. I may also
add or subtract reading assignments during the semester. Appendices are not required
reading unless I specifically indicate that you should read them, but some of you may find them
useful.
| Day |
Date |
Topic |
Chapter/Pages |
|
M |
8/25 |
Analyzing Economic Problems |
Chapter 1 |
|
W |
8/27 |
Demand and Supply Analysis |
Chapter 2 |
|
M |
9/1 |
Labor Day Holiday |
|
|
W |
9/3 |
Consumer Preferences and Utility |
Chapter 3 |
|
M |
9/8 |
|
|
|
W |
9/10 |
Consumer Choice |
Chapter 4 |
|
M |
9/15 |
The Theory of Demand |
Chapter 5 (Skip Section 5.4 on
Network Effects) |
|
W |
9/17 |
|
|
|
M |
9/22 |
Inputs and Production Functions |
Chapter 6 |
|
W |
9/24 |
Test 1 |
|
|
M |
9/29 |
Costs and Cost Minimization |
Chapter 7
|
|
W |
10/1 |
|
|
|
TH |
10/2 |
|
Last day to drop without WF |
|
M |
10/6 |
Cost Curves |
Chapter 8 |
|
W |
10/8 |
|
|
|
M |
10/13 |
Perfect Competition |
Chapter 9 |
|
W |
10/15 |
|
|
|
M |
10/20 |
Competitive Markets: Applications |
Chapter 10 |
|
W |
10/22 |
|
|
|
M |
10/27 |
Test 2 |
|
|
W |
10/29 |
Monopoly and Monopsony |
Chapter 11 |
|
M |
11/3 |
|
|
|
W |
11/5 |
Capturing Surplus |
Chapter 12 |
|
M |
11/10 |
|
|
|
W |
11/12 |
|
|
|
M |
11/17 |
Game Theory and Strategic Behavior |
Chapter 14 Sections 14.1 and 14.2
only |
|
W |
11/19 |
Market Structure and Competition |
Chapter 13 Sections 13.1, 13.2, and
13.5, but skip pp. 509-511. |
|
M |
11/24 |
Test 3 |
|
|
W |
11/29 |
Thanksgiving Holiday |
|
|
M |
12/1 |
General Equilibrium Theory |
Chapter 16 |
|
W |
12/3 |
|
|
|
Sat |
12/13 |
Final
Exam
Saturday, December 13 - 9:00 a.m. |
|
