Fall 2012,
Section: 0101 (Skinner Bldg. 0200)
Dr. S. VERMA
Phone: 202-434-6331
Email: skverma@umd.edu
Alt. Email: satyverma@hotmail.com
Text:
Office Hrs:
Office:
Intermediate Microeconomics and Its Applications
By Walter Nicholson and Christopher Snyder (11 th
Thursday after class
Morrill Hall 1102 C
(If you come to the class regularly, you do not need a study guide. It is optional.)
Edition)
Note: (a) You should not be in this class if you do not like drawing diagrams and solving numerical problems.
(b) Class attendance is crucial for doing well in this course.
(c) Class lectures may not necessarily follow the text book. Some topics
may be covered using other text books.
(d) You need to bring a calculator, a ruler and some colored pencils to the
class. (
Sounds like a primary school. Isn’t it? But you will learn
Microeconomics a lot faster and a lot better.)
Grading: First Exam (30%) Oct 9 -- Drawing diagrams, Numerical Problems,
Multiple Choice
Second Exam (30%) Nov 8 -- Drawing Diagrams; Numerical Problems
Multiple Choice,
Final Exam (40%) Dec 19 10:30 to 12:30
Cumulative -- All Multiple Choice
The course grades will be determined at the end of the semester. Your grade will be based solely on the number of points that you get. The available points are as follows.
1st Mid Term Exam: 90 Points
2nd Mid Term Exam: 90 Points
Final Exam: 120 Points
TOTAL: 300 Points
A: 90% and above
B: 75% to 90%
C: 60% to 75%
D: 50% to 60%
F: Less than 50%

Course Outline:
Aug 30 – Sept 4 Review of what you learned before. Supply and Demand;
Elasticity; Utility Analysis: Consumer Equilibrium
Income and Substitution Effect
Chapters: 1, 2, 3
Sept 6 – Sept 13 Compensating Variation and Equivalent Variation; Index
Numbers; Numerical Problems
Chapter: 3 and 4
Sept. 18 Uncertainty, Ch 4
Sept 20 – Sept 27 Theory of Production -- Isoquants; Producer Equilibrium;
Product Curves; Stages of Production in the short run (not in your text book) – Chapter 6
Oct 2 Relationship between product and cost curves; Short-run and
Long-run Cost curves; Numerical problems
Chapter 7
Oct 4
Oct 9
Review (Sample midterm exam will be discussed)
Midterm I – You will be given incomplete diagrams and you will be asked to complete them. Numerical problems; multiple choice questions.
Oct 11
Oct 16 – Oct 18
Profit Maximization -- Numerical problems. Chapter 8
Perfect Competition -- short run and long run equilibrium;
Increasing, Decreasing and Constant Cost Industry
Chapter 9
Oct 23 – Oct 25 Monopoly -- Short-run and Long-run Equilibrium; Monopolistic
Discrimination; Regulation of Monopoly; Applications.
Chapter 11
Oct 30 – Nov 6 Cournot Model of duopoly; Oligopoly – Cartels (not in your text book), OPEC, Monopolistic Competition; Short-run and Long-run
Equilibrium; Applications.
Chapter 12
Nov 8 Review (Sample midterm exam will be discussed)

Nov 13 Midterm II – Numerical problems; drawing diagrams; multiple choice.
Nov 15 – 20 Pricing of Inputs; Wage Determination; Interest and Capital
Monopsony; Labor Supply, Labor Unions, Arbitration
Chapter 13
Nov 27
Nov 29
Capital and Time
Chapter 14
Public Good – Externalities
Chapter 16
Dec 4 – Dec 11 General Equilibrium; Pareto Optimality; Edgeworth Box.
Chapter 10
Dec 13 Review
Final Exam Dec 19, 10:30 to 12:30
Legal Excuses for Missing an Exam : Under University regulations, a make-up exam is only allowed in the following situations: religious holidays, illness or a major family issue, and participation in University activities at the request of University authorities. If you anticipate missing an exam, contact your T.A. or me immediately. If you miss an exam without advanced anticipation, contact me as soon as possible after the exam. I will arrange a makeup exam by mutual convenience.
PLEASE NOTE: Because of the large class size, you MUST take the final exam at the scheduled time, unless you have a valid university excuse. Conflicts with other final exams are not a valid excuse, nor are travel plans that conflict with the exam. For DSS students, I will give an extra ½ hour.