ECO 301 Microeconomics

Case, Karl E., Fair, Roy C., Oster ,Sharon E., Principles of Microeconomics 12th Edition 2017, published by Pearson
ISBN-13: 978-0134078816
ISBN-10: 0134078810

Students can obtain this text book from the following source:
http://www.mypearsonstore.com/bookstore/principles-of-microeconomics-0134078810

All reading and (optional) homework assignments referenced in this syllabus refer to this text

1) 1) In addition, it is recommended that students have the accompanying study guide by Pearson. This can be accessed here:
http://www.mypearsonstore.com/bookstore/myeconlab-with-pearson-etext-instant-access-for-principles-0134090934

2) The following study guide will be made available upon enrollment:

Case, Karl E., Fair, Roy C., Oster ,Sharon E., PowerPoint Presentations to accompany Principles of Microeconomics 12th Edition 2017, published by Pearson

Lesson Overview

Lesson 1: The Scope and Method of Economics
Read Chapter 1

This lesson looks at the reasons to study economics. Students learn to think as economists to understand society and global affairs. Students look at economics in practice in scope and practice. Students are introduced to different economic theories and models and learn about economic policy in general.

Lesson 2: The Economic Problem: Scarcity and Choice
Read Chapter 2

In this lesson students learn about opportunity costs in a world of scarcity. Students examine a production possibility frontier and learn about free markets and the role of government in the economy.

Lesson 3: Demand, Supply, and Market Equilibrium
Read Chapter 3

In this lesson students will learn how economic decisions are made. Students look at input and output markets with respect to changes in quantity demanded and price and are introduced to the demand curve and look at different factors that cause it to shift. Students also look at the supply curve with respect to quantity and price and look at the factors that cause it to shift and are introduced to the idea of market equilibrium and the factors that can cause it to change.

Lesson 4: Demand and Supply Applications
Read Chapter 4

In this lesson students learn about the price system and the allocation of resources. Students are taught price rationing and constraints on the market and look at rationing mechanisms and market efficiency. Students learn about consumer and producer surplus in less than perfect competitive markets.

Lesson 5: Elasticity
Read Chapter 5

In this lesson students are taught the price elasticity of demand with respect to the slope of the demand curve and learn to calculate elasticity as a ratio of percentages. They learn how to use the midpoint formula and calculate elasticity changes along the straight line demand curve. Students learn about elasticity with respect to revenue and look at how elasticity is affected by the availability of substitutes and calculate cross-price elasticity. Students also take a look at elasticity of supply

Lesson 6: Household Behavior and Consumer Choice
Read Chapter 6

In this lesson students look at household demand and the budget constraint. They are introduced to the concept of diminishing marginal utility. They learn the utility maximizing rule and discuss the downward-sloping demand curve. They learn about the income and substitution effects and how they affect the demand curve. Students will also learn about substitution with respect to market baskets and the price of leisure.

Lesson 7: The Production Process: The Behavior of Profit-Maximizing Firms
Read Chapter 7

In this lesson students learn about the behavior of profit-maximizing firms. They look at sot minimization and short-term versus long-term decisions. They will examine the production process and look at two variable production functions. Students will look at the total, marginal, and average product with respect to profit maximization.

Lesson 8: Short-Run Costs and Output Decisions
Read Chapter 8

In this lesson students distinguish between fix costs and variable costs with respect to total revenue and marginal revenue. Students look at the short run supply curve with respect to costs and revenues to find the profit maximizing point.

Lesson 9: Long-Run Costs and Output Decisions
Read Chapter 9

In this lesson students distinguish between short run conditions and long run directions with respect to maximizing profits and minimizing losses. Students look at the short run industry supply curve with respect to long run directions. Students learn about economies of scale in terms of constant and decreasing returns to scale. Students examine the U-shaped long run average costs curve and will learn about the implications of making long run adjustments to short run conditions.

Lesson 10: Input Demand
Read Chapter 10-11

In this lesson students look at input demand with respect to labor and land markets as well as the capital market. Students learn to measure a firm’s profit-maximizing condition in input markets and look at input demand curves. Students look at input demand with respect to capital, investment, and depreciation. They will also learn about capital income in terms of interest and profits and look at the mortgage market. They will also look at the demand for new capital with respect to the investment decision.

Lesson 11: General Equilibrium and the Efficiency of Perfect Competition
Read Chapter 12

In this lesson students look at how the market adjusts to changes in demand. Students examine allocative efficiency and competitive equilibrium. They look at perfect competition verses real markets. Students examine the sources of market failure with respect to imperfect markets, public goods, externalities, and imperfect information.

Lesson 12: Monopoly and Antitrust Policy
Read Chapter 13

In this lesson students learn about imperfect competition and market power. They look at how pure monopolies make price and output decisions. Students examine demand in monopoly markets and barriers to entry and look at the inefficiency aspect of monopoly and consumer loss. Students look at rent-seeking behavior and learn about examples of price discrimination. Students learn about antitrust policy and antitrust legislation.

Lesson 13: Oligopoly
Read Chapter 14

In this lesson students learn about the market structure of oligopoly. Students look at the collusion model, the price-leadership model, and the Cournot model of oligopoly. They will use game theory to explain oligopoly and the prisoner’s dilemma. Students examine the economic performance of oligopoly markets with respect to industrial concentration and technological change and look at the role of government in regulating mergers.

Lesson 14: Monopolistic Competition
Read Chapter 15

In this lesson students look at the statement of cash flows and its classifications. Students learn how to prepare the statement of cash flows using the indirect method. Students learn about how to account for non-cash investing and other financing activities. Students learn how to use the free cash flow to evaluated business performance. Students learn how to prepare the statement of cash flows using the direct method and indirect method. Students look at how to prepare the statement of cash flows using a spreadsheet.

Lesson 15: Externalities, Public Goods, and Social Choice
Read Chapter 16

In this lesson students learn about marginal social cost in terms of marginal cost pricing. Students examine how to account for the external effects of private choices. Students look at the characteristic of public goods and the optima provision of public goods. Students examine social choice and the voting paradox. Students look at government inefficiency with respect to the theory of public choice.

The student’s final grade will be based on a final examination. Examination questions will cover all topics covered in the readings. Students will have two hours to complete the final examination.  Students will be assigned a number grade from 0-100. A letter grade will also be issued in accordance with the following scale:

90-100 – A
80-89 – B
70-79 – C
0-69 – non passing