ECN4802, INTERMEDIATE MICROECONOMIC THEORY

Dr. ALI R. MOSHTAGH

2371 COLEMAN HALL

(217) 581 - 2916

amoshtagh@.eiu.edu

 

OFFICE HOURS:

 

COURSE DESCRIPTION:

Analysis of product and factor price theory under alternative market classifications.

COURSE OUTLINE:

A. INTRODUCTION

a. The nature of Microeconomics

b. Factors of production

c. Model building

d. General features of economic models

e. What is a market?

B. THE PRICE SYSTEM

a. Demand and supply

b. A review of market price determination

c. Price elasticity of demand

d. Price elasticity of supply

e. Price controls

C. CONSUMER BEHAVIOR

a. Theories of consumer choice

b. Consumer preferences

c. Budget constraint

d. Marginal utility

e. Cost-of-living indexes

f. Individual and market demand

g. Income-consumption and Engel curves

h. Price-consumption curve

i. Substitution and income effects

j. Consumer's surplus

k. Applications

D. PRODUCTION AND COSTS

a. The production function: one variable input

b. The production function: two variable inputs

c. Returns to scale
E. THE COSTS OF PRODUCTION

a. Measuring cost: which costs matter

b. Cost in the short run

c. Cost in the long run

d. The cost-minimizing input choice

F. THE THEORY OF THE FIRM

a. Structure, conduct, and performance

b. Price and output determination under:

       1. Perfect competition
       2. Pure monopoly
       3. Monopolistic competition

       4. Oligopoly

c. Allocative efficiency

d. Price discrimination, Example

e. Game theory

G. MARKETS FOR INPUTS  

a. Determinants of input prices

b. The market demand curve

c. The concept of rent

d. Perfect competition vs. monopsony

METHODS OF EVALUATION:

 

3 examinations 300 points

Assignments and Quizzes 50 points

Term Paper (Graduate Students) 50 points

                                 ------------

Total                        400 points

 

TEXTBOOK:

 

Robert S. Pindyck and Daniel L. Rubinfeld, MICROECONOMICS, Seventh Edition, Prentice-Hall Inc., 2009.

YOU MUST BRING YOUR BOOKS TO CLASS.

NOTE 1:

 

No exam grade will be eliminated. No exam will be made up unless arrangements have been made prior to the scheduled

exam date. MISSED QUIZES WILL NOT BE MADE UP.

NOTE 2:

If you have a documented disability and wish to receive academic accommodations, please contact the Coordinator of the Office of Disability Services at 581-6583 as soon as possible.