MONTCLAIR STATE UNVERSITY
DEPARTMENT OF ECONOMICS AND FINANCE
ECON. 102, PRINCIPLES OF MICROECONOMICS
Semester: Fall 2014
Semester Hours: 3.0
Instructor: Professor Rawlins
Office: PA Rm. 413
Telephone: (973) 655-4339
Office Hours: T, R 2:30-4:00
Course Description: Organization and operation of the American economy for the production and distribution of goods and
services. Pricing of products and factors of production in market situations varying from competition to monopoly. Resource
allocation, price determination and behavior of the firm in the determination of quantity of output and the hiring of factors of
production.
Educational Philosophy and Teaching Methodology: For most students of economics this is their second college encounter
with the subject. The goal here is to fortify and refine their reasoning skills and their ability to provide insightful proposed
solutions for current economic problems. Thus the thrust is two-fold. First, there is a broad-based review of the general tools of
the discipline, the thinking skills employed, and the various techniques of problem formulation and resolution. Second, an
introduction to modern microeconomic theory coupled with an examination of consumer behavior and industrial practices in the
real world.
Educational Dimensions of the Strategic Charter Supported by the Course
Discipline Specific Knowledge and Competencies: It is anticipated that students will acquire the knowledge and competence
for analyzing and assessing the propriety of decision making as companies and households respond to current economic
circumstances.
Thinking Skills: Students will evaluate the efficacy of economic policy initiatives against a checklist of desired goals. Further,
students will employ their thinking and creative abilities in initially answering on their own, the questions in the study-guide.
Finally, as the class is taught in an interactive manner, students participate by attempting to answer the non-rhetorical questions
thrown out to the class.
Communications Skills: Their in-class responses to both questions and cases will enhance their abilities to verbally articulate
their positions on issues.
Change Management. Throughout the course students will come to reflect on the impact of economic forces on the world
around them, on social stratification, and on the opportunities and challenges that these changes confront them with in their
personal and professional lives.
Self-development: Students will develop a willingness to independently initiate and execute projects; will display the
temperament to listen to, as well as work with others as useful members of a team; and will in general engage in those activities
that lead to a self-sustaining path to personal growth.
Method of Evaluation: There will be two exams during the semester which will count for just under 50% of the course grade; a
paper will account for about 11%, with the remaining 40% coming from the cumulative final exam. For classes meeting once a
week, students missing 4 or more class sessions will be removed from the class roster and thus will receive a grade of F for the
course. For classes meeting twice a week, students missing 6 or more class sessions will be removed from the class roster and
thus will receive a grade of F for the course. Students missing both semester exams also cannot get a grade in this course and will
be required to repeat it. On the positive side, students having a perfect attendance record (meaning that that they were physically
in the classroom on every day that the class met) will have 5 percent of the semester total added on to their grade. Note that this is
not 5 percent of the overall course total, (ie. the final exam score is excluded when making this calculation).
Required Texts:
Combined Special CREATE Edition of the following texts specially prepared for this class:
MICROECONOMICS, 19th. ed. by McConnell, Campbell and Stanley Brue., pub. by McGraw-Hill.
STUDY GUIDE to accompany MICROECONOMICS, 19th. ed. by McConnell, Campbell and Stanley Brue., pub. by McGrawHill.
Note that this is a single book with both text and study guide with my name on it that you may purchase from the
bookstore.
Course Outline:
Topic
Chapters
1.
Introduction
1
(a) The new vocabulary.
(b) Economic models and reality.
(c) Pitfalls of common reasoning.
2.
Choice and Scarcity
1
(a) Choice and opportunity cost.
(b) The Production Possibility Frontier.
(c) Applications.
3.
Demand, Supply and Price Determination
3
(a) The law of demand and demand curves.
(b) The law of supply and supply curves.
(c) Market equilibrium.
4.
Elasticity of Demand and Supply
4
(a) The concept of elasticity.
(b) Measurement.
(c) Applications.
5.
Consumer Demand
6
(a) Utility, total and marginal.
(b) The law of diminishing marginal utility.
(c) Two applications of the law of D.M.U.
6.
Production Costs
7
(a) The short run and the long run.
(b) Marginal Product and the Law of Diminishing Returns
(c) Production and costs in the short run.
(d) Production and costs in the long run.
7.
An Overview of the Product Markets
8
(a) Market Structure.
(b) Profit Maximization.
(c) Loss Minimization.
8.
Perfect Competition
8
(a) The four market characteristics.
(b) Profit maximization in the short run.
(c) Profit maximization in the long run.
9.
Monopoly
10
(a) Factors promoting monopoly.
(b) Profit maximization.
(c) Comparing monopoly and perfect competition.
(d) Regulatory control and the Monopoly.
(e) Price Discrimination.
10.
Monopolistic Competition
11
(a) Characteristics of Monopolistic Competition.
(b) Equilibrium in the long run and short run.
(c) The economic effects of monopolistic competition
11.
Oligopoly
11
(a) Characteristics of Oligopoly.
(b) Barriers to entry.
(c) Price and output determination.
12.
Market Structure and Public Policy
18
(a) The economic effects of concentration.
(b) Public policy toward regulation.
(c) The evolution of antitrust policy.
13.
The Demand for Productive Resources
12
(a) Factor demand as a derived demand.
(b) The theory of marginal productivity.
(c) The elasticity of factor demand.
14.
The Labor Market, Wages and Unions
(a) Market structure and wage determination.
(b) The growth of labor unions in the U.S.
(c) The future of labor unions.
13 (Optional)
FIRM PROFILE REPORT. ECON. 102.
Using approximately 2000 words you will detail the salient characteristics and modus operandi of the
firm that you have selected. This will begin with a brief description of how the firm does business (just a
few sentences). In the main part of the paper you will use data and factual analysis to describe the
principal factors affecting the composition of costs that the firm/industry faces, lay out its chief sources
of revenue, and examine the degree of competition that the firm faces, followed by a conclusion. Your
paper must have five main sections identified with the following sub-titles: INTRODUCTION,
CONCLUSION (which together should account for no more than 25% of the paper), COST, REVENUE,
and COMPETITION (each of which should account for 25% of the paper), to be followed by a
bibliography or reference section. Please note that your paper is not complete without this division
and heading, and be sure to address the subject matter of the heading in each of the above sections.
Please note the following:




In addition to the 2000 words, you may submit any data, tables, graphs and equations that you
think reinforce your analysis in the paper.
Because of the brevity of the report (you are limited to 2000 words, to just over 2000 words)
you may not use any quotes.
On the first day of the classes you will be shown a list of the choices of the students from
previous semesters. This is intended both to give you some ideas for your choice as well as to
rule out the use of a firm chosen those previous semesters. Each student will write on a
different firm on a first come first served selection basis. At the outset, each student will select
the names of five firms (not on the list) to hand in. Note that if you do not hand the list in on the
due date the number grows to 10, 15, etc. for subsequent classes) The professor will then select
one firm from the student’s list to be that student’s firm for the semester.
The deadlines are as follows: By [a date given by the instructor, usually sometime in the first
two weeks of the semester] you are to hand in a two to three page summary of your choice of
a firm, both describing how it does business and explaining your choice. So that if you are
handing in this paragraph on the deadline day you may wish to choose a backup firm, in
consultation with the instructor. The final paper is due on [a date given by the instructor,
usually about two months after the start of the semester].

If you meet both deadlines you will get two bonus points added. If you do not meet the deadline
for any of these you will loose two points for each missed deadline for every class meeting day
that you fail to hand it in. Note that it must be physically handed to me in the class to count for
that day. Please no emails, and please do not leave anything with the secretary or in my mail
box (they do not count)
 While you will use a wide range of data and research sources, what you write must be in your
own words. To this end you must submit an electronic version which will be checked by various
software products to detect any possibility of plagiarism.
 Note also that this project is a part of the course and it is not optional (as it fulfills a GER
requirement). It counts for approximately 11 percent of your grade. For the final paper you will
be graded out of 20 points for the 11% , and for an excellent report you can earn still more
bonus points. Excellence is judged by the criteria outlined below.
 Be sure to save your paper electronically and keep it after you have given the paper copy to me
in class.
 You must do an electronic word count, that must be displayed on the title page.
NOTE THE DISTRIBUTION OF THE GRADE FOR THIS PROJECT. (nb. that this
project itself accounts for 11% of your overall course grade)
ORIGINALITY, (i.e. how much of your own thoughts come out in the paper) 25%
RELEVANCE, (i.e. making your presentation germane to the topics covered in our Micro Economics
course) 25%
CONTENT, (i.e. the substance of what you actually present) 25%
ANALYSIS, (i.e. the strength and directness with which you draw inferences and conclusions from the
facts that you present rather than merely presenting a string of facts) 25%
Finally note that this instruction sheet contains 774 words.