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Microeconomics

Course Description:

This course is an intermediate course in microeconomics. It explores the decision making of economic agents (consumers and firms). It also examines how different market mechanisms operate to allocate resources. The topics it covers include utility maximization, profit maximization, cost minimization, market equilibrium, monopoly, oligopoly, social welfare, externalities, public goods, and behavioral economics if time allows. On the completion of this course, students should be able to apply these analytical tools to explain some phenomenon and analyze some problems in the real world.

Prerequisites: Introductory Economics, Calculus.

Texts:

1.Hal R. Varian, Intermediate Microeconomics - A Modern Approach, W.W. Norton & Company, 2006, 7th Ed. (Required)

2.Theodore C. Bergstrom and Hal R. Varian, Workouts in Intermediate Micro¬economics, W. W. Norton & Company. (Optional)

N.Gregory Mankiw, Principles of Economics, The Dryden Press. (Optional)


Course Design:

This is a tentative course Design. Changes are possible to occur.


Week

Session

Contents

Chapter

Homework

1

1

Introduction: The Market

Ch 1

2

Budget Constraint

Ch 2

2

3

Preferences

Ch 3

4

Utility

Ch 4

Problem Set 1

3

5

Choice

Ch 5

6

Demand

Ch 6

4

7

Slutsky Equation

Ch 8

8

Buying and Selling

Ch 9

5

9

Intertemporal Choice

Ch 10

10

Consumer Surplus

Ch 14

6

11

Market Demand

Ch 15

Problem Set 2

12

Technology

Ch 18

7

13

Midterm

14

Profit Maximization

Ch 19

8

15

Cost Minimization

Ch 20

16

Cost Curves

Ch 21

9

17

Firm Supply

Ch 22

18

Industry Supply

Ch 23

Problem Set 3

10

19

Equilibrium

Ch 16

20

Equilibrium & Exchange

Ch 16 & 31

11

21

Exchange

Ch 31

Problem Set 4

22

Monopoly

Ch 24

12

23

Monopoly Behavior

Ch 25

24

Oligopoly

Ch 27

13

25

Externalities

Ch 34

26

Public Goods

Ch 36

Problem Set 5