INTERMEDIATE MICROECONOMIC THEORY

Fall Semester, 2005

Professor William C. Perkins

Telephone (914)-323-5149. E-mail: perkinsw@mville.edu.

Office: Reid Hall 400-A

Office Hours: Tuesday & Thursday 3 to 5:30pm & Wednesday 11am to 12 noon.

 

Course Description: Intermediate microeconomics is concerned with market activity.     Topics include market demand and supply, the theory of consumer behavior and the theory of the firm.  Different kinds of product market structures will be examined including perfect competition, monopolistic competition, oligopoly and monopoly.

Required Reading: 

Microeconomics: Theory/Applications (11th edition) by Edwin Mansfield and Gary Yohe. W.W. Norton & Company, publishers.  Abbreviated M below.

Course Requirements: Three exams will be given during the semester on the dates indicated below.  Each exam will count equally towards the final course grade (approximately 30% each).  The remaining 10% will be determined from grades on homework, class participation and regular attendance.

Prerequisites: Principles of Economics I and II or the equivalent.

 

Week of:                                      Topic                                              Reading Assignment

 

August 30                               Introduction                                                  M chapter 1

(a)    Tasks performed by a market system

(b)   Model building in economics

(c)    Positive v. normative economics

 

September 6 & 13              Consumer Tastes and Preferences                      M chapter 2

(a)    Consumer preferences and utility

(b)   Indifference curves and the marginal rate of substitution

(c)    The budget line and price ratio

(d)   Consumer equilibrium

 

September 13 & 20           Consumer Behavior and Individual Demand        M chapter 3

(a)    Effects of price and income changes

(b)   Substitution and income effects

(c)    Consumer surplus

 

September 20 & 27            Market Demand Curve and Elasticity                    M chapter 4

(a)    Measuring demand curves

(b)   Price, income and cross-price elasticity or demand

(c)    Marginal revenue

(d)   Industry and Firm Demand Curves

 

Friday, October 7                            FIRST EXAMINATION

October 11 & 18        The Firm: Its Technology and Costs                 M chapters 6 & 7

(a)    Technology and inputs

(b)   Short run and long run

(c)    Production function and diminishing returns

(d)   Isoquants and isocost curves

(e)    Short run and long run cost curves

 

Oct 25 & Nov 1             Perfect Competition and Applications               M chapters 8 & 9

(a)    Equilibrium price & output

(b)   Applications of the competitive model

(c)    Long run supply

 

Friday, November 11                      SECOND EXAMINATION

 

November 15                     The Monopoly Model                                       M chapter 10

(a)    Equilibrium price & output

(b)   Comparison with perfect competition

(c)    Price discrimination

(d)   The regulated monopolist

                 

 

November 22                   Monopolistic Competition                               M chapter 11

(a)    Equilibrium price & output

(b)   Comparison with other models

(c)    Mark-up pricing

(d)   The role of advertising

 

THANKSGIVING HOLIDAY

 

November 29                            Oligopoly                                                 M chapter 12

(a)    Characteristics

(b)   Cournot model and Nash equilibrium

(c)    Collusion and cartels

(d)   Game theory

 

December 6                       Oligopoly (continued) and review

 

                                 

December 9 -13                       FINAL EXAM: Date to be announced by registrar’s office.

 

 

 

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