James Madison University College of Business
ECONOMICS 331: INTERMEDIATE MICROECONOMIC THEORY
Fall 2006
Dr. Robert N. Horn
Sections 1 (Tu. Th. 8:00-9:15) and 2 (Tu. Th. 9:30-10:45)
Office: 441 COB x3219; Hours:
E-mail: HORNRN@JMU.EDU
Course Objectives:
"For students who care about how the world works, microeconomics is one of the most relevant and interesting subjects they study. A good grasp of microeconomics is vital for appreciating how a modern economy works." While this quote accurately expresses my views on this class, I am also of the opinion that a micro-economics course should impart not only an understanding of the theory but also the excitement of USING the theory to explain a wide range of individual consumer and firm behavior.
In order to accomplish this rather lofty set of goals, we will analyze topics in microeconomic theory at the intermediate level. Topics will include an analysis of individual and market behavior, an economic theory of consumer behavior, economic theories of production and cost, competitive and noncompetitive market structures, externalities, and general equilibrium analysis.
Students ought to be aware that Economics 331 is first and foremost a course in economic theory. As such, our tools of analysis will include graphs and equations. You are expected to have some basic familiarity with graphs, i.e. plotting and interpreting data, understanding slopes, algebra and equation solving, and basic calculus, including techniques for taking total and partial derivatives.
Required Texts:
Robert S. Pindyck and Daniel L. Rubinfeld. MICROECONOMICS sixth edition. Prentice Hall, 2005.(the 5th edition will work just as well)
Course Outline chapters
I. Demand, Supply and Price: Some Basic Concepts.......1,2
II. An Economic Theory of the Consumer.......................3,4
III. The Economics of the Firm: Production and Cost......6,7
IV. Pricing in Competitive Markets.................................8,9
V. Monopoly Markets.................................................10; 10.1 - 10.4 only
11; 11.1 - 11.3 only
VI. Between Competition and Monopoly.......................12 (selected parts)
VII. Labor as a Factor of Production.............................14
VIII. An Introduction to General Equilibrium Analysis.....16
IX. Externalities and Public Goods ................................18
Expectations and Evaluation
Examinations:
We will have three exams, each worth 20% of your semester grade and a comprehensive final exam worth 30%. The TOPICS (not chapters) for each exam are as follows:
EXAM TOPICS
1 I, II
2 III, IV
3 V,VI
FINAL Comprehensive (stresses last part)
In general, make up exams are not offered. Anyone missing an exam MUST provide a documented excuse for her/his absence.
Problem Sets: Distributed in-class or via e-mail or on my web-site:
It is my firm conviction that the only way to LEARN microeconomics is to DO microeconomics. Problem sets will contain short answer questions, graphics, and computation exercises. It is YOUR responsibility to DO these problem sets as you work through the corresponding chapters in the text. At times, we will go over specific problems in class and students will be selected (at random) to put the problems on the board. Failure to seriously attempt any problem will have a significant negative impact on your course evaluation. I highly recommend you break up into small study groups to work on the problems. The methodology and problem solving techniques learned from working the problems will be vital to satisfactory performance on exams. Waiting until the night before an exam to begin the problem sets will almost guarantee a dismal performance.
Selected problem sets will be turned in for grading. Short quizzes will also be given. Quizzes, problem sets and class participation will account for the remaining 10 percent of your course grade.
You are expected to have completed the assigned readings prior to class meetings. While I do not necessarily expect you to "get it" from a first reading, it is important that you be at least familiar with the material before the class meets.
Class Participation:
In border line cases the student who has taken active role in her/his education will always receive the benefit of doubt. You will likely be called upon to answer questions, put problem solutions on the board, etc. Unwillingness or inability to do so will have a negative impact on your final grade.
Be it known that your professor is always eager and ready to help students during office hours and at arranged times. He may seem aloof at times but is very concerned about your doing well is this class.
JMU Honor Code:
You are encouraged to form study groups to assist in learning the material. However, anything turned into me should be the results of your own efforts. With respect to exams, the Honor Code will be adhered to. See your catalog for specific information.
SHORT RUN COSTS TABLE & EXERCISE
Answer Key Exam 2
ANSWERS to CHAPTER PROBLEMS
Chapter 7: The Cost of Production
Chapter 8: Perfect Competition
Chapter 9: The Analysis of Competitive Markets
Chapter 11: Pricing With Market Power
Chapter 12: Monopolistic Competition and Oligopoly
PROBLEM SETS
ANSWER GUIDES
REVIEW GUIDES
