Econ. 410
Spring 2008
Tauchen
Course Outline and Readings – Part I
Listed below is an abbreviated course outline. Unless otherwise stated the readings are
from Besanko and Braeutigam, Microeconomics. ed 3, Wiley, 2008. Other readings are available on
the course web site.
Topic 1: Basics of Supply and Demand
I. Preliminaries – pp. 20-25
II. Basics of Supply and Demand – Ch. 2.1
III. Algebraic Model of Supply and Demand – Ch. 2.1
IV. Elasticities – Ch. 2.2 – 2.4
V. Applications
Yorman Bauman, (2005). Quntum Microeconomics, pp. 115-119
Topic 2: Consumer Theory
I. Budget Constraint – Ch. 4.1
II. Consumer Preferences
A. Usual Assumptions about Consumer Preferences – Ch 3.1
B. Utility Function – pp. 73-79
C. Indifference Curves and the Indifference Map – pp. 79-86
D. Specific Examples of Preferences and Utility Functions – pp. 87-94
III. Consumer Choice – pp. 105-108, 111-113
IV. Individual Demand – Ch 5.1
A. Effects of Changes in Only One Price – Deriving the Demand Curve
B. Effects of Change in Only Income – Deriving the Engle Curve
V. Income and Substitution Effects – Ch. 5.2
VI. Applications – Ch. 4.3, 5.6
VII. Consumer Surplus – Ch. 5.3
VIII. Market Demand – Ch. 5.4
Topic 3: Efficiency and Equity of the Market Outcome – Simple Exchange Economy
pp. 628-634
Topic 4: Technology
I. Introduction – Ch. 6.1
II. Production Function with One Variable Input – Ch. 6.2
III. Production Function with More than One Variable Input – pp. 194-205, 208-212
IV. Returns to Scale – Ch. 6.5
Topic 5: Costs
I. Basics – pp. 225-234
II. Long-Run Cost Minimizing Input Combination – pp. 234-250
III. Short-Run Cost Minimizing Input Combination – Ch. 7.4
IV. Deriving the Long-Run Cost Curves – pp. 263-274
V. Shape of the LR Average Cost Curve and Economies of Scale – pp. 274-279
VI. Short Run Cost Function with One Variable Input – pp. 279-282
VII. Relationship between Short-Run and Long-Run Cost Functions – pp. 283-287
Topic 6: Competitive Market
I. Preliminaries – Ch. 9.1
II. Profit Maximization by the Individual Competitive Firm – Ch. 2
III. A Competitive Firm’s Short-Run Supply Curve – pp. 312-318
IV. Short-Run Market Supply – pp. 319-323
V. Short-Run Market Equilibrim – pp. 324-328
VI. Long-Run Competitive Equilibrium – Ch. 9.4
VII. Economic Rent and Producer Surplus – pp. 345-352