AMERICAN INTERNATIONAL UNIVERSITY-BANGLADESH
Faculty of Arts and Social Sciences
Department of Economics
BBA Program
COURSE OUTLINE
I. Course Code and Title
: BBA-1204 – Microeconomics
II.
Credit
: 3 Credit Hours
III.
Prerequisite
: Business Math 1
IV.
Course Description
The course is an introduction to the market system. It is designed to provide a strong basic foundation
of microeconomic principles. The course will cover scarcity and choices, basic demand and supply
analysis, theory of consumer choice, elasticity of demand and supply, short and long run cost curve,
price and output determination under different market structures.
V.
Course Objectives
The purpose of this course is to help students learn the fundamental lessons of microeconomics and to
show students how those lessons can be applied to the world in which they live. It is an important field
to understand the context of business and government policies, and analyze their effects.
Knowledge (Cognitive)
 To know the behavior of households and firms in different economic contexts
 To understand market mechanism and change in prices
 To know different types of costs
 To understand different types of markets
Skills (Psychomotor)
 To demonstrate price movements in different economic situation
 To solve problems in economics and business decision making through the application of
appropriate economic theories.
 To demonstrate firms behavior in different market structures
Attitude, Behavior (Affective)
 To accept rational behavior of households and firms
 To optimize utility in choosing consumption bundle
 To accept the price and output for various goods and services in different market structure
VI.
Course Contents
Topics
Chapter 1 &
2
What is
Economics?;
The
Economic
Problems




Chapter 3
Demand and
Supply






Specific
Objectives
Time
Frame
Suggested
Activities
Teaching
Strategy
Intended Learning
Outcomes
Understanding
the definition of
Economics
Understanding
Economic
Questions
Production
Possibilities
Frontier
Understanding
slope
Understanding
demand, law of
demand,
demand curve
and demand
schedule
Understanding
change in
quantity demand
and change in
demand
Understanding
supply, law of
supply, supply
curve and
supply schedule
Understanding
change in
quantity supply
and change in
supply
Understanding
market
equilibrium and
price
mechanism
Understanding
change in price
due to change in
demand or
supply
Lectures
1&2
Discussion
on the
lecture
contents to
the
students
 Discussion with
the aid of
multimedia
Students will able to
 Define economics and
distinguish between
microeconomics and
macroeconomics
 Explain questions of
economics
 Calculate slope for
both straight line and
curvature
Discussion
on the
lecture
contents to
the
students
 Discussion with
the aid of
multimedia
Lectures
3, 4 & 5
 Understanding
the contents in
white board
 Real life
example
 Students
participation
in drawing the
diagrams in
class
 Understanding
the contents in
white board
Students will able to
 Explain the influences
on demand
 Explain the influences
on supply
 Explain how demand
and supply determine
prices
and quantities bought
and sold
 Use the demand and
supply model to make
predictions about
changes in prices and
quantities
Chapter 4
Elasticity






Chapter 5
Efficiency
and Equity




Chapter 9
Possibilities,
Preferences
and choices


Understanding
and measuring
price elasticity
of demand.
Understanding
and measuring
cross price
elasticity of
demand.
Understanding
and measuring
income
elasticity of
demand.
Understanding
and measuring
price elasticity
of supply.
Interpreting the
elasticity
coefficient
Understanding
the factors that
influence
elasticity of
demand and
elasticity of
supply
Understanding
consumer
surplus
Understanding
producer surplus
Understanding
efficiency of
competitive
equilibrium
Understanding
market failure
Understanding
preferences and
utility.
Understanding
indifference
curve and
budget line
Lectures
6, 7 & 8
Discussion
on the
lecture
contents to
the
students
[Quiz 1]
 Discussion with
the aid of
multimedia
 Students
participation
in various
elasticity
calculation in
class
 Understanding
the contents in
white board
Lectures
09 & 10
Lectures
11 & 12
Discussion
on the
lecture
contents to
the
students
 Discussion with
the aid of
multimedia
Discussion
on the
lecture
contents to
the
students
 Discussion with
the aid of
multimedia
[Quiz 2]
 Understanding
the contents in
white board
 Understanding
the contents in
white board
Students will able to
 Define, calculate, and
explain the factors that
influence the price
elasticity of demand
 Define, calculate, and
explain the factors that
influence the cross
elasticity of demand
and the income
elasticity of demand
 Define, calculate, and
explain the factors that
influence the elasticity
of supply
Students are able to
 Explain consumer
surplus and producer
surplus
 Explain the conditions
under which markets
are efficient and
inefficient
Students will able to
 Describe a household’s
budget line and show
how it changes when
prices or income
change
 Use indifference
curves to map
preferences and

Mid-Term Examination
Chapter 11
 Understanding
Output and
short-run and
Cost
long run
 Understanding
short-run
technological
constraint
 Understanding
types of costs
 Understanding
long run cost
Chapter 12
Perfect
Competition
explain the principle of
diminishing marginal
rate of substitution
 Predict the effects of
changes in prices and
income on
consumption choices
Predicting
consumer
choices




Understanding
perfect
competition
Understanding
firms’ output
decision
Understanding
output, price
and profit in
the short run
Understanding
output, price
and profit in
the short run
Lectures
13, 14
& 15
Lectures
16, 17
& 18
Discussion
on the
lecture
contents to
the
students
Discussion
on the
lecture
contents to
the
students
[Quiz 1]
Week 7
 Discussion with
the aid of
multimedia
 Understanding
the contents in
white board
 Discussion with
the aid of
multimedia
 Practice by the
students in
drawing
diagrams
 Understanding
the contents in
white board
Students will able to
 Distinguish between
the short run and the
long run
 Explain the
relationship between a
firm’s output and labor
employed in the short
run
 Explain the
relationship between a
firm’s output and costs
in the short run and
derive a firm’s shortrun cost curves
 Explain the
relationship between a
firm’s output and costs
in the long run and
derive a firm’s long
run average cost curve
Students will able to
 Define perfect
competition
 Explain how a firm
makes its output
decision and why it
sometimes shuts down
temporarily and lays
off its workers
 Explain how price and
output are determined
in a
perfectly competitive
market
 Explain why firms
enter and leave a
competitive market
and the consequences
of entry and exit
Chapter 13
Monopoly



Chapter 14
Monopolistic
Competition



Chapter 15
Oligopoly


Understanding
monopoly and
how it arises
Understanding
monopoly’s
output and
price decision
Comparison
between
monopoly and
competition
Lectures
19 & 20
Understanding
monopolistic
competition
Understanding
price and
output in
monopolistic
competition
Product
differentiation
and marketing
Lectures
21 & 22
Discussion
on the
lecture
contents to
the
students
 Discussion with
the aid of
multimedia
 Provide real life
examples
 Understanding
the contents in
white board
Understanding Lecture
23
Oligopoly
Understanding
oligopoly game
(Prisoners
Dilemma)
Discussion
on the
lecture
contents to
the
students
 Discussion with
the aid of
multimedia
 Understanding
the contents in
white board
[Quiz 2]
Discussion
on the
lecture
contents to
the
students
 Discussion with
the aid of
multimedia
 Predict the effects of a
change in demand and
of a technological
advance
Explain why perfect
competition is efficient
Students will able to
 Explain how
monopoly arises
 Explain how a
monopoly determines
its
output and price
 Compare the
performance and
efficiency of
monopoly and
competition
 Explain how price
discrimination
increases profit
 Explain how
monopoly regulation
influences output,
price, economic profit,
and efficiency.
Students will able to
 Define and identify
monopolistic
competition
 Explain how a firm in
monopolistic
competition
determines its price
and output in the short
run and the long run
 Explain why
advertising costs are
high and why firms
use brand names in a
monopolistically
competitive industry
 Define and identify
oligopoly
 Use game theory to
explain how price and
output are determined
in oligopoly
 Understanding
the contents in
white board
Final Exam
Review
Final Examination
VII.
VIII.
Lecture
24
Week 14
Course Assessment: The examinations will consist of multiple choices, short answers, problem
solving, and open-ended essay questions. The examinations will test your comprehension of the
concepts discussed in the class, and your ability to apply the concepts to solve real-life economic
problems. Creativity will also be tested. Moreover, quizzes and assignment will be performed in
this course.
Evaluation: Grades will be calculated as per the university grading structure. Students will be
evaluated based on the following criteria
Mid-Term Examination
Final Term Examination
Category
Marks (%)
Category
Marks (%)
Attendance and class
10
Attendance and class
10
participation
participation
Quiz
20
Quiz
20
Assignment
20
Assignment
20
Term Exam
50
Term Exam
50
Total
100
Total
100
Final Grade = 40% of Mid-term + 60% of Final-term
IX.
Textbooks/References
1. Parkin, M. (2006). Economics. Pearson Educación. [10th Edition]
2. Gans, J., King, S., & Mankiw, N. G. (2011). Principles of microeconomics. Cengage
Learning.
3. Samuelson, P. A., & Nordhaus, W. D. (1995). Economics: International Edition. New York.
McGraw-Hill Inc.
4. McConnell, C. R., Brue, S. L., & Flynn, S. M. (2009). Economics: Principles, problems,
and policies. Boston McGraw-Hill/Irwin.
5. Krugman, P., & Wells, R. Microeconomics. 2012.
6. Case, K. E., Fair, R. C., & Oster, S. M. (1996). Principles of microeconomics. Upper
Saddle River, NJ: Prentice Hall.
7. Cowen, T., & Tabarrok, A. (2015). Modern principles of microeconomics. Macmillan
International Higher Education.
8. Tucker, I. B. (2010). Economics for today. Cengage Learning.
Prepared By:
Dr. Md. Nasir Uddin
Assistant Professor, Department of Economics,
Faculty of Arts and Social Science (FASS),
American International University-Bangladesh.