ECON 3070-001/2 INTERMEDIATE MICROECONOMIC THEORY

Spring 2009, Department of Economics

University of Colorado at Boulder

Class time and location: 

Section 1: TR 12:30-1:45, HLMS 267; 

Section 2: TR 9:30-10:45, ECON 117.

 

Instructor	Anna Rubinchik, Assistant Professor
Office	ECON 121
E-mail	Anna.Rubinchik@Colorado.edu
Phone	(303) 735-0220
Office hours	TR 10:45-11:45 and 1:45-2:45

Class website:  http://www.colorado.edu/Economics/courses/rubinchik/econ3070/syl09-3070.html

Link to the list of HW assignments

Course Description

Intermediate Microeconomic Theory introduces students to the basic microeconomic concepts and tools used to analyze individual and firm behavior under conditions of scarcity. The course comprises five parts. Part I reviews supply and demand, and mathematical concepts used by economists. Part II examines consumer choice and demand applications. Theory of the firm analyzes firm technology, costs and production in Part III. Part IV examines pricing and output under perfect competition, general equilibrium and economic welfare. Market power, structure and price discrimination are covered in Part V. Part VI examines special topics such as externalities and public goods.

Objectives

Learn and apply the basic tools used by economists to understand how agents interact with one another, how they make optimal decisions, and how markets are organized.

Become comfortable using diagrams, algebra, calculus and other mathematical concepts to develop economic models for use in an applied setting.

Develop oral and written communication skills with classroom interaction, homework assignments and examinations.

Prerequisites

Available to students who have completed ECON 100 Introduction to Economics or ECON 2010 Principles of Microeconomics, and either ECON 1078 Math Tools for Economists I and ECON 1088 Math Tools for Economists II, or MATH 1300.

The course will be taught with mathematical emphasis. Students should be familiar with microeconomic principles, algebra, calculus, and optimization techniques covered in prerequisite classes, and be comfortable expressing these concepts in short-answer questions in homework assignments and examinations.

Textbook

The required textbook is Microeconomics: An Integrated Approach , 2^nd edition (or later), by David Besanko and Ronald R. Braeutigam, 2005, John Wiley & Sons, New York,    ISBN 0-471-45769-8.

Class requirements

Please, try to select a regular seat in class so it is easier for the instructor to get to know you. Although there is no grade for attendance, attendance and class participation will be duly noted. To receive a passing grade, you are required to attend a minimum of 80 percent of the lectures. A sign-in sheet will be circulated during each class, and it is your responsibility to make sure that you have signed in by the end of class. Please be aware that the critical thinking required for successful completion of this course may not come naturally for many students. Class exposure to model building, applied problems and solutions is the best way to become proficient in the application of microeconomic theory.

Feel free to form study groups to review and discuss lecture/reading material, homework questions, etc., but you must submit individual work for grading (hint: if you work with a study group or individual class mates on homework, please list the names of these persons on the front page of your submitted homework).

• attend two 75 minute classes per week;
• read the assigned chapters prior to lectures;
• review and augment notes after lectures;
• complete (a minimum of 5 out of 6) homework assignments;
• complete one mid-term examination; and
• complete one final examination

Students are also expected to be punctual, polite and prepared to engage in discussion with the instructor and class mates. See http://colorado.edu/policies/classbehavior.html

for University of Colorado polices on student classroom and course-related behavior.

Grading

There will be six homework assignments (with the lowest score dropped from the overall grade), one mid-term examination, and one final examination. The weightings for these assessments are:

The mid-term and final examination will consist of short-answer and problem solving questions (similar to homework questions and class applications) that require students to use diagrammatic, mathematical and written skills to prove their answers.

There will be no make-up homework assignments or mid-term examination unless there is a proven emergency or other unusual circumstances that have been discussed with the instructor prior to submission/completion dates. If you aware of any problems that may hinder your performance in the class please discuss with the instructor sooner than later. Any student that misses the mid-term examination due to proven emergency may have their final exam weighted at 50 percent with the instructor's approval.

The final examination for ECON 3070 is scheduled for 

Section 1:

Section 2:

See http://registrar.colorado.edu/calendar/exam_sched_spring09.html

Important dates for assessment

Solutions to Selected Assignments

Religious observances

Honor code

The University has recently adopted a student Honor Code. Students should familiarize themselves with its tenets at http://www.colorado.edu/academics/honorcode/. Students will be asked to include this pledge on various assignments and tests: “On my honor, as a University of Colorado at Boulder student, I have neither given nor received unauthorized assistance on this work.”

Disability services

Tentative course outline

Please note the course outline is subject to change during the term depending on how fast we work through the proposed topics. All changes will be announced in class and online.
 

Week	Topic	Readings
1	Part I. Review Introduction, Analytical Tools	Ch. 1
2	Demand and Supply Analysis	Ch. 2
3	Part II. Consumer Theory Preferences and Utility	Ch. 3
4	Consumer Choice	Ch. 4
5	Consumer Demand and its Applications	Ch. 5 PP slides
6	Part III. Theory of the Firm Inputs and Production Functions	Ch. 6
7	Cost Minimization	Ch. 7 Notes on Returns to scale Practice problems "consulting"
8	Exam review, Midterm Examination	Ch. 1-7
9	Cost Curves Part IV. Perfect Competition Perfectly Competitive Markets	Ch.8.  Ch. 9
10	Consumer and Producer Surplus, Applications: Analyzing Public Policy Interventions	Ch. 5, 9 Ch.10
11	Spring Break
12	General Equilibrium, Efficiency, First Welfare Theorem	Ch. 16
13	Part V. Market Power, Market Structure, Pricing Monopoly	Ch.11
14	Price Discrimination	Ch. 12
15	Oligopoly, Game Theory	Ch. 13, 14
16	Part VI. Topics in Public Policy Externalities	Ch. 17
17	Final Examination	Ch. 9-14, Ch. 16,17

No class on Thursday, April 2 and
Passover, April 9.