EC 172: Intermediate Microeconomics Department of Economics University of Vermont

Fall 2009
EC 172: Intermediate Microeconomics
Department of Economics
University of Vermont
Instructor
Email
Schedule
Prereq
Donna Ramirez Harrington
[email protected]
MWF 9:35 am-10:25 am
EC 12 and MATH 19, no exceptions
Office
Office Hours
Classroom
233 Old Mill Bldg.
11:00-12:00 MW/ by appt
L311 Lafayette
Course Description
This course builds upon the fundamentals of microeconomic theory (Ec 12). The difference with Ec 12
lies in the tools which will be used as well as in the depth at which the concepts will be discussed. Ec
172 will rely heavily on calculus, in addition to graphical exposition and intuitive explanations. We will
revisit the theory of the consumer, theory of the firm, how each economic agent makes rational
economic decisions, and how they interact in the market. We will also delve deeper into the welfare
economics, imperfect competition and other types of market failures.
Instruction and Learning Materials
Textbook: (Required)
Jeffrey M. Perloff, Microeconomics: Theory and Applications with Calculus. 2008 Pearson Education
Online edition is an option and is available to your for 180 days for $84.00. Check out the website:
http://www.coursesmart.com/givecoursesmartatry?xmlid=9780321550903&__instructor=1703513
Extra readings may be assigned. These may be distributed in class, may be made available at the Library
or may be made available on Blackboard.
Blackboard
The course will utilize Blackboard for extra instructional materials, announcements, and other pertinent
information about the course. You are expected to check Blackboard regularly.
Course Requirements and Grading System
While I will not check attendance, I can guarantee that your performance in this class will be highly
correlated with how regularly you attend class. I will highlight important concepts, applications and
mathematical examples in class, which are very similar to what you will be expected to do in the
assignments and exams. I am distributing at the beginning of the semester Assignment 1 which is
basically a Math Review (It is part of your grade). I suggest you gauge your readiness for the course
based on how comfortable you are answering these problems.
25%
25%
25%
22%
3%
Midterm 1
Midterm 2
Final Exam (cumulative)
Assignments
Econ 12 Assessment
In class, October 7, Wednesday
In class, November 23, Monday
L311 Lafayette, Dec 11, Friday, 8:00 A.M. - 11:00 A.M.
TBA
In class, September 14, Monday
1
Fall 2009
Tentative Course Outline and Prescribed Readings
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
Introductory Material (Chapter 1)
Supply and Demand (Chapter 2)
a. Demand, supply and market equilibrium
b. Elasticities
c. Comparative statics
Theory of the Consumer
a. Consumer’s Constrained Choice (Chapter 3)
i. Consumer preferences and utility functions
ii. Indifference curves and budget lines
iii. Constrained consumer choice: U-max and E-min
b. Demand (Chapter 4)
i. From indifference curves to demand curves
ii. Income and substitution effects
c. Consumer Welfare and Policy Analysis (Chapter 5)
i. Consumer surplus
ii. Compensating Variation and Equivalent Variation
iii. Policies affecting consumer welfare
Theory of the Firm
a. Firms and Production (Chapter 6)
i. Firm objectives and production functions
ii. Isoquants
iii. Returns to scale and technological change
b. Costs (Chapter 7)
i. From production function to cost curves
ii. Short-run and long-run
iii. Cost Minimization problem
c. Competitive Firms and Markets (Chapter 8)
i. Profit maximization: short run and long run
ii. Short run and long run competitive equilibrium
Competition and Efficiency
a. Properties and Applications of the Competitive Market (Chapter 9)
i. How and why perfect competition leads to maximum welfare
ii. Distortionary policies and social welfare
b. General Equilibrium and Economic Welfare (Chapter 10)
i. Pareto efficiency
ii. Efficiency and equity
Imperfect Competition
a. Monopoly (Chapter 11)
b. Pricing and Advertising (Chapter 12)
c. Oligopoly and Monopolistic Competition (Chapter 13)
d. Game Theory (Chapter 14)
Factor markets (Chapter 15)
Market Failures
a. Uncertainty (Chapter 16)
b. Externalities, Open Access and Public Goods (Chapter 17)
c. Asymmetric Information (Chapter 18)
d. Contracts and Moral Hazard (Chapter 19)
2
Fall 2009
Class Policies
My class policies are consistent with UVM policies (The links will be on Blackboard):
Classroom Code of Conduct
Code of Student Rights and Responsibilities
Code of Academic Integrity
My specific class policies are below:
1.
Attendance
I will not check attendance. Anything you miss is your responsibility. Whatever you miss
when you are absent, come late, leave early, and register late is also your responsibility. Early
departure for Fall Recess or Thanksgiving break is NOT considered an excused absence
regardless of how early you have made your plans. See link on Classroom Code of Conduct
above.
Absences during due dates for assignments and exams are excused only for personal medical
situations and family emergencies. University policy specifies that “In the event of illness
requiring hospitalization or extended absence from classes because of a medical condition, with
permission from the student, a designated member of the Primary Care/Women’s Health staff
will notify the student's Dean's Office who will then be in touch with the student’s
faculty.” Please make sure to contact the CAS Office of Student Affairs if you get hospitalized and
miss and deadline and/or an exam.
Disruptive students will be dealt with according to UVM policies. See link on Code of Student’s
Rights and Responsibilities above.
2.
Assignments and in-class exercises
All take-home assignments are individual assignments. However, you are allowed to work with
others but make sure you do not copy anything verbatim from anyone. I will uphold UVM
policies on academic integrity. See link on Code of Academic Integrity above.
It is your responsibility to be aware of the due dates for all assignments which will be
indicated on the assignment questionnaire. Take home assignments are to be submitted at
the beginning of the class on the day they are due, unless otherwise noted. If you miss the
deadline, your assignment score depends on whether your absence is excused or not. If it is
unexcused, you will get a score of zero on that assignment. If you think you have an excused
absence, I may or may not accept your late assignment and I reserve the right to request for
proof and judge whether your absence is excused or not, and you may get a corresponding
penalty on the score.
I will drop ONE take home assignment with the lowest % score. This includes any
assignment or exercise where you get a score of zero because your forgot about the assignment,
or submitted late, or because you were absent. Once you get a zero on any assignment, there is
no chance to make up for it. That zero score will be dropped, and all your other assignments, no
matter what the score is, will count toward your grade. No exceptions.
3
Fall 2009
3.
Exams
There will be two midterms: October 7, Wednesday and November 23, Monday. Mark your
calendars. A cumulative final exam will be held on December 11, 2009 Friday, 8:00 A.M. 11:00 A.M., in the same room as our class. Mark your calendars.
I will NOT drop any midterm or final. All exams will count toward your grade. I reserve the
final authority to excuse other types of absences, and final authority on deciding on
missed exams.
For each Midterm
If I deem that your absence during midterm is excused, you would need to schedule with me a
make-up exam as soon as possible. You need to take the make-up midterm within a week of your
return, unless there are extenuating circumstances. This exam will be different from the original
exam.
During the Final Exam
Since grades are due within 72 hours of the final exam, if you miss or expect to miss the final
exam I need to know on the day that the final exam is due whether your absence is excused or
not.
If I deem that your absence is excused, you would need to schedule with me a make-up exam as
soon as possible. You need to take the make-up exam within 2 days of the original schedule,
unless there are extenuating circumstances. This exam will be different from the original exam.
Unexcused Absences
For an unexcused absence during either of the midterms or the final exam, you will
automatically receive a score of zero on that missed exam.
4.
Office Hours and Email
Office hours are designed to help students with difficult concepts and challenging
quantitative exercises. Office hours are not designed for personal tutorial sessions for students
who miss classes, come late or leave early.
I do not make a habit of explaining exams, lectures, assignments by email. This class relies
a lot on graphs and algebra which is better explained in person. If you need something clarified,
come to my office hours or you can speak with me before or after the class. If a good number of
students have similar questions, I will address them in class only. You can set appointments to
see me via email if you are unavailable during my office hours.
5.
Re-grading
Requests for re-grading of exams/assignments must be done in writing within 24 hours after I
give you back your exam/homework. Be specific with your question/inquiry. I will not re-grade
assignments /exams with broad requests for me “to take a look at the answers again”. It is your
responsibility to be specific about what section of the assignment/exam you are asking to be regraded and why you think your answer deserves more points. Any request for re-grading will
subject your entire assignment/exam for re-grading. Hence, your score may go up or
down.
4