Sumell, Microeconomic Theory Syllabus
Fall 2010
ECON 6912
Microeconomic Theory
M W 6:35 – 7:50 p.m.
346 DeBartolo Hall
Instructor:
Office:
Phone:
e-mail:
website:
Albert J. Sumell
314 DeBartolo Hall
(330) 941-1678
ajsumell@ysu.edu
http://www.as.ysu.edu/~ajsumell
Office Hours: 12:00 – 1 p.m. Mon. and Wed.; 10:30 – 11:30 a.m. Fri. or anytime by
appointment.
Course Description and Objectives: This course provides comprehensive coverage of
microeconomic issues by analyzing applications of the theory. In order to effectively
study microeconomic issues we will use differing mathematical techniques including
calculus and lagrangian multipliers. Most topics will involve a formal economic model.
A graphical and intuitive approach is stressed in addition to the technical tools. Topics in
the course include: consumer preference theory; elasticity; the development of demand
functions; risk and uncertainty; production and cost analysis; market structures: perfect
competition, monopoly, oligopoly and monopolistic competition; factor markets; and
pareto efficiency.
After completing the course you should:
- posses a comfortable understanding of selected topics in modern microeconomic theory
at the introductory graduate-level of difficulty.
- be able to explain the underlying theory of applications and public policy.
- understand how mathematical models are used to formalize economic problems
- be better equipped to conduct research on microeconomic topics.
Required Materials:
1. Walter Nicholson and Christopher Snyder, Microeconomic Theory: Basic Principles
and Extensions, 10th edition, Southwestern, 2008. ISBN # 0-324-27086. Available at the
bookstore. Note that the 9th edition is not substantially different in terms of explanation
of the theory, but does differ in terms of ordering of the chapters.
2. Selected articles may be handed out and/or posted online.
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COURSE PHILOSOPHY: The course philosophy is best stated as follows:
"I wrote Microeconomics and Behavior in the conviction that the teaching of intuition
and the teaching of technical tools are complements, not substitutes. Students who learn
only technical tools rarely seem to develop any real affection for our discipline, and even
more rarely do they acquire that distinctive mindset we call 'thinking like an economist.'
By contrast, students who develop economic intuition are stimulated to think more deeply
about the technical tools they learn and to find more interesting ways to apply them.
Most important, they usually end up liking economics."
Robert Frank (Cornell Univ.), from the Preface of the text University Economics.
Note on mathematical expectations: Those of you without a strong background in
calculus may find certain aspects of this class more difficult than others. For those of you
registered in ECON 6904 (Quantitative Methods), I have spoken to Dr. Uppal, and he has
agreed to cover some basic calculus early on in his class which you should find helpful.
If you feel you are struggling to keep up with the mathematical requirements (or the class
material in general) please come and see me and/or Dr. Uppal outside of class to discuss
potential methods to improve.
Course Expectations and Requirements:
Exams: There will be two midterms and one final exam. The midterm exams will be
given during class time. A make-up exam can be given under extreme circumstances if I
am notified of the circumstances before the exam or within 24 hours of the exam.
Homework Assignments: You will have at least three homework assignments
throughout the semester. The assignments are intended to help further your
understanding of the material and prepare for the exams. These assignments will take a
good deal of time and I expect them to be completed neatly (at least legible). No late
homework assignments will be accepted, so I would recommend beginning these
assignments as soon as you receive them.
You may discuss and work on homework problems with other class members and work
together, provided the work is in a collaborative manner. You will be required to turn in
your own solutions to each assignment.
Attendance Policy: You are not required to attend class. You are responsible, however,
for any material covered during the missed lectures including handouts passed out during
class. I do not distribute my personal class notes to students. Given the pace of the class,
I would recommend attending every class. I will post assignments and study guides with
practice problems and answers on the course webpage throughout the semester.
Basis for Grading:
3 or 4 assignments – 30% total (10% each if we have 3, 7.5% each if we have 4)
2 midterms – 40% total - 20 % each
Final exam – 30%
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Grading Scale: Your final grades will be based on the standard 10 point percentage
scale (90% above is an ‘A’, 80 – 89% is a ‘B’, 70 – 79% is a ‘C’, 60 – 69% is a ‘D’, and
60% or below is an ‘F’). Final grades will be curved at the end of the semester as deemed
appropriate.
Statement Regarding Disabilities: Anyone requiring special adaptations or
accommodations should inform the instructor as soon as possible. In accordance with
University procedures, if you have a documented disability and require accommodations
to obtain equal access in this course, please contact the Office of Disability Services
(phone: 330-941-1372) in the Center for Student Progress at the beginning of the
semester or when given an assignment for which an accommodation is required. Students
with disabilities must verify their eligibility through the Office of Disability Services.
Tentative Course Outline (Subject to Changes):
8/23 – 9/1:
9/6:
9/8 – 9/15:
9/20 – 9/22:
9/27-9/29:
10/4 – 10/6:
Introduction/the core concepts/initial applications
Ch. 1 and 3 (students should review Ch. 2 on their own)
Labor Day
Constrained optimization and choice theory/ income v. substitution effects
Ch. 4 - 5
Assignment 1 due. Further applications of choice theory/Hicks v.
Marshall v. Slutsky
Chs. 5-6, F: Ch. 5
Choice Under Uncertainty and Risk Attitudes.
Ch. 7, 19
Assignment 2 due. Finish Uncertainty, Review, First Exam.
10/11-10/13: Production and Cost Functions
Ch. 9-10
10/18 – 10/20: Profit Maximization.
Ch. 10-11
10/25 – 10/27: Competitive Markets
Ch. 12
11/1 – 11/3: Assignment 3 due. Finish Competitive Markets, Review, Second Exam.
11/8 – 11/10: Monopoly/Market Power
Ch. 14
11/15 – 11/17: Imperfect Competition
Ch. 15
11/22- 11/24: Game Theory (Note, 11/25 is Thanksgiving)
Ch. 8
11/29 - 12/1: Assignment 4 due. Externalities
Ch. 19
Final exam week begins 12/6. Your final exam will be Wednesday, 12/8, 6:00 – 8:00.
Note: 10/28 is the last day to withdraw and receive a “W”
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