Economics 3411

Microeconomic Theory

Spring Semester, 2012

RCOB 1315, TTh 2:00 – 3:20

 

 

Instructor:

Dr. Adrian Austin

044 Business Building

Phone: (678) 839-4773

E-mail: Use the CourseDen mail utility found on the course toolbar for all course

                                related questions. All email will be answered within 1 business day.

E-mail (Emergency Only): aaustin@westga.edu

 

Office Hours (Carrollton):             

Tuesday

11:30 – 12:30 & 15:30 – 17:00

Thursday

11:30 – 12:30 & 15:30 – 17:00

Friday

11:00 – 14:00

 

 

Course Website: on CourseDen

 

Course objective:

 

This course seeks to help you develop the tools necessary to analyze and investigate various economic problems. To do this we will expand the concepts that you learned in Principles of Microeconomics to develop richer, more flexible (and more complex) economic models.

 

The course is (necessarily) more quantitatively oriented than the introductory class (i.e. more mathematics). Graphs and pictures can provide insight, but the real power of economic analysis comes in calculating quantitative answers to economic problems.

 

For every economic problem, we shall look initially at the simplest case containing the fundamental issues. Second we will construct a model (using graphical and algebraic tools) that represents the fundamental issues. Then we shall solve the model to see what economic intuition we can derive from it. Finally we will expand the model to make it look more like the "real world." The goal is for the models to provide us with an intuitive explanation (and predictions) of the choices made by economic agents (consumers, producers, governments etc).

 

 

Texts (Required):

 

            Price Theory and Applications, 8e. Steven E. Landsburg (The 7th edition will work just as well, and costs a whole lot less.)

 

                        Website: http://landsburg.swlearning.com

 

 

Texts (on reserve):

 

            Microeconomics and Behavior. Robert H. Frank.

 

            For the ambitious:

            Microeconomic Theory, Basic Principles and Extensions. Walter Nicholson.

 

 

Structure:

 

            I. Introduction and review of "Principles of Economics."

                        Chapters 1 & 2

 

II. Consumer Theory (in which we study how consumers choose to spend their incomes)

Chapters 3 & 4

 

III. Producer Theory (in which we study how firms make input and production decisions)

            Chapters 5 & 6

 

IV. Perfect competition and the gains from trade (in which we study the interactions of consumers and producers under certain "ideal" conditions)

            Chapters 7 & 8

 

V. Not-so-perfect competition (in which we study the interactions of consumers and producers without the "ideal" conditions)

            Chapters 9, 10, 11, 12, 13, & 14

 

VI. Further topics in consumer theory

            Chapter 17 - Allocating goods over time

            Chapter 18 - Risk and Uncertainty


Schedule:

           

Introduction and Math Review

Chapters 1, 2, and Class Notes

Indifference curves

Chapter 3, Web notes

Budget Constraints

Chapter 3, Web Notes

Examining the consumer's choice

Chapter 3, Web notes

Comparative Statics

Chapter 3, Web notes

Demand curves and Engel curves

Chapter 4, Web notes

Income and substitution effects

Chapter 4, Web notes

Applications of consumer theory

 

 

Exam 1

 

 

The equimarginal principle

Chapter 5

Production and costs in the short run

Chapter 6.1

The competitive firm and industry in the short run

Chapter 7

The competitive firm and industry in the long run

Chapter 7

Using the competitive model

Chapter 7

Social Welfare

Chapter 8

Information

Chapter 9

 

Exam 2

 

 

Monopoly power

Chapter 10

Price discrimination

Chapter 10

Between Monopoly and Competition

Chapter 11

Oligopoly and strategy

Chapter 11

Game Theory 1 (simultaneous games)

Chapter 12

Game theory 2 (sequential games)

Chapter 12

 

Exam 3

 

 

Externalities

Chapter 13

Public goods

Chapter 14

Allocating goods over time

Chapter 17&18

 

 

 

 

Final Exam – TBA

Covers Everything

 

This schedule may change as the class progresses. Any changes will be announced in class and on the class website.

 


Exams:

 

There will be three midterms and a final exam. Each exam (including the final) is worth 25%. The lowest score of the three midterms will be dropped. The final exam is cumulative and will not be dropped.

 

There will be NO makeup exams.

 

Homework:

 

Homework/quizzes/participation will account for 25% of your grade.

 

There will be group assignments as well as individual assignments.

 

Each group must have 2 to 4 people. Groups cannot change during the semester.

 

Late homework assignments will not be accepted.

 

            There is a penalty for not stapling your homework.

 

If you turn in all the homework assignments, the lowest score will be dropped.

 

There will be NO makeup homework.

 

Attendance: 

 

Attendance is mandatory. You are allowed 3 absences without penalty. For each absence (after 3) your course grade will be reduced by half a grade. If you arrive to class late, you will be marked absent.

 

To get the most out of this class:

 

Pre and post read all assigned readings.

 

Turn in all assignments.

 

Spend about 5 hours a week studying the material.

 

Come to class and ask questions.

 

If you are having difficulty with the material, come to my office hours. PLEASE DON'T WAIT UNTIL YOU ARE COMPLETELY LOST.


 

PLEASE TURN OFF YOUR CELL PHONES DURING CLASS.

 

Please don’t walk in and out of class.

 

Please ask questions if you are confused (in class or during my office hours).