COMPETENCY AND INDONESIAN QUALIFICATION FRAMEWORK BASED SYLLABUS
Course Title
: Microeconomic Theory II
Coordinator
: Dr. Sri Hartoyo
Course Code
Semester
Prerequisite course
Course Description
: EKO 201/ 3 (2-3)
: Even / Four
: Microeconomics 1 (EKO 201)
: This course is designed to provide knowledge for the students in regard to further topics in microeconomics. These
further topics are, among others, preferences in uncertain situation, information economics, game theory and strategic
equilibrium, competitive general equilibrium, perfect competition efficiency, imperfect competition traditional models,
workforce demand, workforce supply, capital, externality and public goods and public preference theory.
: After completing this course, students are expected to be able to explain and implement the theories in advanced
microeconomics in existing cases and problems.
Learning Outcome
WEE
K
1
2
EXPECTED
LEARNING
OUTCOME
Students explain
the relationship
between
mathematical
concept and
microeconomic
concept
Students explain
preferences in
uncertain
INDICATOR
TOPIC (TEACHING
MATERIAL)
 Students can  Mathematical
explain
the
concept in
relationship
economics
between
 Review
of
mathematical
preference concept
concept and
in certain situation
microeconom
ic concept
 Students can
explain
preferences
 Risk aversion and
fair bets
 Risk aversion and
LEARNING
METHOD
Lecture,
illustration, and
discussion
methods,
Lecture,
illustration, and
discussion
TIME
ALLOCAT
ION
LEARNIN
G SOURCE
ASSESSMEN
T CRITERIA
Lecture:
1x (50’x3)
Nicholson,
W. 1998.
Written test
in the form of
Essay
Lecture:
1x (50’x3)
(Chapter 2)
Nicholson,
W. 1998.
Microecono
mic Theory:
Basic
Principles
and
Extensions,
7th edition.
Microecono
SCOR
E
WEIG
HT
(%)
2.5%
2.5%
situation
3
4
Students explain
the importance of
information in
economics
Students explain
game concept
and Nash
Equilibrium
in uncertain
situation
insurance
 Risk aversion
measurement
 Risk aversion and
wealth
 State preference
approach in
uncertainty
 Students can  Properties of
explain the
information
importance of  Value of information
information in  Formal model
economics
 Value of information
on prices
 Asymmetric
information
 Information and
insurance
 Moral hazard
 Adverse selection
 Students can  The basic concept of
explain
game theory and
game
strategic equilibrium
concept and
 Nash equilibrium in
Nash
game
equilibrium
 Game with mixed
strategy
 Nash equilibrium in
game with mixed
strategy
 Unstable Nash
equilibrium
 Cooperation and
mic Theory:
Basic
Principles
and
Extensions,
7th edition.
methods,
(Chapter 8)
Lecture,
illustration, and
discussion
methods,
Tutorial
Lecture:
1x (50’x3)
Tutorial:
1x (50’x2)
Nicholson,
W. 1998.
Microecono
mic Theory:
Basic
Principles
and
Extensions,
7th edition.
Written test
in the form of
Essay
2.5%
Written test
in the form of
Essay
2.5%
(Chapter 9)
Lecture,
illustration, and
discussion
methods,
Lecture:
1x (50’x2)
Nicholson,
W. 1998.
Microecono
mic Theory:
Basic
Principles
and
Extensions,
7th edition.
(Chapter
10)
5
6
Students explain
and calculate
competitive
general
equilibrium and
several simple
applications in
real world
graphically and
mathematically
Students explain
and calculate the
amount of
efficiency
occurring in the
perfect
competition and
how resources
are allocated
efficiently
 Students can
explain and
calculate
competitive
general
equilibrium
and several
simple
applications
in real world
graphically
and
mathematicall
y

 Students can
explain and
calculate the
amount of
efficiency
occurring in
the perfect
competition
and how
resources are
allocated
efficiently














7
Students explain
the amount of
 Students can
explain the

repetition
Partial general
equilibrium
General equilibrium
through Edgeworth
box diagram
Efficient allocations
Determiner of
equilibrium prices
General equilibrium
modelling
The existence of
equilibrium prices
Walras’ Laws
Brouwer's fixed-point
theorem
Economic efficiency
definition – Pareto
efficiency allocation
Production efficiency
Efficient allocation of
company’s resources
Efficient output
preferences by
companies
Comparative
advantage theory
Product-mix
efficiency
Market adjustment
and information
Walrasian price
adjustment
Lecture,
illustration, and
discussion
methods,
Lecture:
1x (50’x3)
Nicholson,
W. 1998.
Microecono
mic Theory:
Basic
Principles
and
Extensions,
7th edition.
Written test
in the form of
Essay
2.5%
Written test
in the form of
Essay
2.5%
Written test
in the form of
2.5%
(Chapter
16)
Lecture,
illustration, and
discussion
methods,
Lecture:
1x (50’x3)
Nicholson,
W. 1998.
Microecono
mic Theory:
Basic
Principles
and
Extensions,
7th edition.
(Chapter
17)
Lecture,
illustration, and
Lecture:
1x (50’x3)
Nicholson,
W. 1998.
efficiency
occurring in the
perfect
competition on
unstable and
efficient
equilibrium and
exchange with
initial agreement
8
9
Students
explain/calculate/
compare the
calculation results
of imperfect
competition
traditional models
Students explain
amount of
efficiency
occurring in
the perfect
competition
on unstable
and efficient
equilibrium
and exchange
with initial
agreement
 Unstable equilibrium discussion
methods,
 Marshalian quantity
Tutorial
adjustment
 Disequilibrium
Pricing and
expectations
 Rational expectations
 Information and
inefficient
equilibrium
 Information and
equilibrium
 Distribution
 Exchange with initial
agreements
MID-TEST (UTS)
40 %
Lecture,
 Students can  Pricing in
explain/
homogenous
illustration, and
discussion
calculate/com
oligopoly
pare the
methods
 Quasi-competitive
calculation
model
results of
 Cartel model
imperfect
 Cournot model
competition
 Price leadership
traditional
model
models
 Product
differentiation
 Monopolistic
competitive market
 Barriers in entering
the market
Lecture,
 Students can  Excess demand
Tutorial:
1x (50’x2)
Microecono Essay
mic Theory:
Basic
Principles
and
Extensions,
7th edition.
(Chapter
17)
Lecture:
1x (50’x3)
Nicholson,
W. 1998.
Microecono
mic Theory:
Basic
Principles
and
Extensions,
7th edition.
Written test
in the form of
Essay
2.5%
Written test
2.5%
(Chapter
19)
Lecture:
Nicholson,
and calculate
workforce
demand
10
Students explain
and calculate
workforce
demand in
monopsony and
monopoly market
explain and
calculate
workforce
demand
faced by company
 Demand on
company’s inputoutput
 Input demand if
company acts as
price taker
 One-input case
 Two-input case
 Substitution effect
 Output effect
 Output elasticity
 Elasticity of short run
demand on inputs
 Elasticity of
workforce long run
demand
 Students can  Scale effect
explain and
 Demand for factors
calculate
of production and
workforce
returns to scale
demand in
 Marginal productivity
monopsony
and factors of
and
production
monopoly
 Monopsony in input
market
market
 Input expenditure
marginal
 Monopsonistic
discrimination in
workforce demand
 Monopoly in supply
of inputs
illustration, and
discussion
methods
1x (50’x3)
W. 1998.
Microecono
mic Theory:
Basic
Principles
and
Extensions,
7th edition.
in the form of
Essay
(Chapter
21)
Lecture,
illustration, and
discussion
methods,
Tutorial
Lecture:
1x (50’x3)
Tutorial:
1x (50’x2)
Nicholson,
W. 1998.
Microecono
mic Theory:
Basic
Principles
and
Extensions,
7th edition.
(Chapter
21)
Written test
in the form of
Essay
2.5%
11
12
Students explain
and calculate
workforce supply
Students outline
the concepts of
capital, future
goods, rate of
return, interest
rate, and the
price equilibrium
of future goods
 Bilateral monopoly
 Students can  Time allocation
explain and
 Two-good models
calculate
 Utility maximization
workforce
 Income effects and
supply
substitution in wage
changes
 Workforce supply
analysis
 Slutsky equation in
workforce supply
 Cobb-Douglas’
workforce supply
 Effects of non
workforce income
 Workforce supply
curve
 Job search theory
 Compensation for
different work
locations
 Labour unions
 Labour union
modelling
 Students can  Capital
outline the
 Rate of return
concepts of
 Rate of return
capital, future
determiner
goods, rate
 Future goods
of return,
demand
interest rate,  Intertemporal
and the price
impatience
equilibrium of  Changes in rate of
Lecture,
illustration, and
discussion
methods
Lecture:
1x (50’x3)
Nicholson,
W. 1998.
Microecono
mic Theory:
Basic
Principles
and
Extensions,
7th edition.
Written test
in the form of
Essay
2.5%
Written test
in the form of
Essay
2.5%
(Chapter
22)
Lecture,
illustration, and
discussion
methods
Lecture:
1x (50’x3)
Nicholson,
W. 1998.
Microecono
mic Theory:
Basic
Principles
and
Extensions,
7th edition.
future goods




13
Students
formulate
negative
externality
solution and
explain public
goods
 Students can
formulate
negative
externality
solution and
explain public
goods







14
Students explain
 Students can
the theory on
explain the
public preferences
theory on
public
preferences





return effects
Equilibrium price of
future goods
Rate of return,
interest rate, and
nominal interest rate
Investment theory
Present discounted
value
Definition of
externalities
Externalities and
allocation efficiency
Traditional solving of
externalities
Copyright, allocation
and Coase theorem
Characteristics of
public goods
Efficient supply of
public goods
Lindahl pricing of
public goods
Social welfare
criteria
Social welfare
functions
Arrow impossibility
theorem
Direct voting and
resources allocation
Representative
government
(Chapter
23)
Lecture,
illustration, and
discussion
methods
Lecture:
1x (50’x3)
Nicholson,
W. 1998.
Microecono
mic Theory:
Basic
Principles
and
Extensions,
7th edition.
Written test
in the form of
Essay
2.5%
Written test
in the form of
Essay
2.5%
(Chapter
24)
Lecture,
illustration, and
discussion
methods,
Tutorial
Lecture:
1x (50’x3)
Tutorial:
1x (50’x2)
Nicholson,
W. 1998.
Microecono
mic Theory:
Basic
Principles
and
Extensions,
7th edition.
(Chapter
25)
FINAL TEST/UAS (40%)
TUTORIAL/ASSIGNMENT
40%
20%
Literature Reference:
Nicholson, W. 1998. Microeconomic Theory: Basic Principles and Extensions, 7th edition. Harcourt Brace Collage Publishers. USA.
Lecturer Team
: (1). Dr. Sri Hartoto
(2). Dr. Alla Asmara
(6). Dr. Sahara
Assessment format
: Exam and tutorial
Mid-test (UTS)
: 40 %
Final test (UAS)
: 40 %
Tutorial
: 20 %
(3) Dr. Lukytawati Anggraini
(4) Widyastutik, SE, MSi
(5) Dr. Tanti Novianti