Microeconomics Syllabus and Study Guide: Foundations, Markets, and Policy

Course Overview

Introduction to Microeconomics

This course provides a comprehensive introduction to microeconomic theory, focusing on the behavior of firms and consumers, market structures, and the application of economic reasoning. Students will develop a systematic thinking process to analyze economic questions and apply concepts such as supply and demand, market equilibrium, and cost analysis.

• Textbook: Microeconomics by Hubbard & O'Brien, 9th edition, Pearson, 2024.

• Course Platform: MyEconLab for quizzes and assignments.

• Instructor: Prof. Larry Rocha

Course Objectives

Learning Goals

By the end of the semester, students will:

• Understand core microeconomic concepts relating to firms and consumers.

• Apply the principles of supply and demand to real-world scenarios.

• Analyze different market structures: perfect competition, monopoly, monopolistic competition, and oligopoly.

• Explore additional topics such as international trade, consumer choice, and cost analysis.

Key Quote: "I hear and I forget, I see and I remember, I do and I understand." – Confucius

Course Structure & Requirements

Class Format

• Combination of lectures and classroom discussion.

• Students are expected to take notes, participate in discussions, and engage with economic concepts through questions and group activities.

• Handouts, definitions, and slides will be provided weekly; students are responsible for printing and bringing these materials to class.

Academic Citizenship

• Respect for peers and property is required at all times.

• Active participation and asking questions are encouraged.

• All students are expected to try their best and contribute to a positive learning environment.

Academic Integrity

• Policy: All work submitted must be your own. Academic dishonesty will be reported to the Dean and may result in penalties ranging from a zero on the assignment to failure in the course.

Assessment & Grading

Grading Breakdown

• Quizzes: One per chapter, online via MyEconLab. The lowest quiz grade will be dropped. Quizzes account for 20% of the final grade.

• Media Writing Assignment: Analyze a recent news article using economic theory. Three pages: analysis, graphical analysis, and article copy. Worth 15% of the final grade.

• Class Participation: Active engagement in class counts for 5% of the final grade.

• Late Assignments: Penalized 5 points per day late; after 5 days, a zero is assigned.

• Absence Policy: Three absences allowed; each additional absence reduces final grade by 0.5 points. Nine absences result in automatic failure.

Grade Scale

Grade	Percentage
A	93 – 100
A–	90 – 92
B+	87 – 89
B	83 – 86
B–	80 – 82
C+	77 – 79
C	73 – 76
C–	70 – 72
D+	67 – 69
D	63 – 66
D–	60 – 62
F	59 and lower

Course Topics & Schedule

Major Topics Covered

• Production Possibilities Frontier (PPF): Illustrates trade-offs and opportunity costs in resource allocation.

• Supply and Demand: Fundamental model explaining market equilibrium, price determination, and quantity exchanged.

• Consumer and Producer Surplus: Measures of welfare and market efficiency.

• Elasticity: Responsiveness of quantity demanded or supplied to changes in price or other factors.

• Consumer Choice: Analysis of how consumers make decisions to maximize utility.

• Cost Analysis: Examination of production costs, including fixed, variable, and marginal costs.

• Market Structures: Comparison of perfect competition, monopoly, monopolistic competition, and oligopoly.

• International Trade: Effects of trade on markets and welfare.

• Technology and Production: Impact of technological change on cost and output.

• Antitrust Policy: Government regulation to promote competition and prevent monopolies.

Sample Schedule (Selected Weeks)

Week	Chapters	Topics
Sept 1–5	2, 3	Production Possibilities Frontier, Introduction to Supply & Demand
Sept 8–12	3, 4	The Interaction of Supply & Demand
Sept 15–19	4, 5	Consumer/Producer Surplus, Elasticity
Sept 22–26	5, 6	Elasticity, Consumer Choice
Sept 29–Oct 3	6, 7	Consumer Choice, Health Care
Oct 6–10	10	International Trade
Oct 27–31	12	Perfect Competition
Nov 3–7	13	Monopolistic Competition
Nov 10–14	14, 15	Oligopoly & Game Theory, Monopoly & Antitrust Policy

Key Microeconomic Concepts

Supply and Demand

The supply and demand model is central to microeconomics, explaining how prices and quantities are determined in markets.

• Law of Demand: As price decreases, quantity demanded increases, ceteris paribus.

• Law of Supply: As price increases, quantity supplied increases, ceteris paribus.

• Market Equilibrium: The point where quantity supplied equals quantity demanded.

Equation for Market Equilibrium:

$Q_d = Q_s$

Elasticity

Elasticity measures how responsive quantity demanded or supplied is to changes in price or other factors.

• Price Elasticity of Demand: $E_d = \frac{\% \text{ change in quantity demanded}}{\% \text{ change in price}}$

• Interpretation: If $|E_d| > 1$, demand is elastic; if $|E_d| < 1$, demand is inelastic.

Consumer Choice and Utility

Consumers aim to maximize their utility given their budget constraints.

• Marginal Utility: The additional satisfaction from consuming one more unit of a good.

• Budget Constraint Equation: $P_x Q_x + P_y Q_y \leq I$

• Optimal Choice: Where the marginal utility per dollar spent is equal across all goods: $\frac{MU_x}{P_x} = \frac{MU_y}{P_y}$

Cost Analysis

Firms analyze costs to determine optimal production levels.

• Total Cost (TC): $TC = FC + VC$

• Marginal Cost (MC): $MC = \frac{\Delta TC}{\Delta Q}$

• Average Cost (AC): $AC = \frac{TC}{Q}$

Market Structures

Microeconomics classifies markets based on the number of firms, product differentiation, and barriers to entry.

• Perfect Competition: Many firms, identical products, free entry/exit.

• Monopoly: One firm, unique product, high barriers to entry.

• Monopolistic Competition: Many firms, differentiated products.

• Oligopoly: Few firms, interdependent decision-making.

International Trade

Trade allows countries to specialize and benefit from comparative advantage.

• Comparative Advantage: Ability to produce a good at a lower opportunity cost than others.

• Gains from Trade: Both parties can consume beyond their individual production possibilities.

Support & Resources

Academic Support

• Office hours and one-on-one help available from the instructor.

• Academic Resource Center (ARC) offers writing assistance, learning skills instruction, and peer tutoring.

• Recommended to schedule appointments in advance; drop-in service is also available.

Summary Table: Major Microeconomic Market Structures

Market Structure	Number of Firms	Product Type	Barriers to Entry
Perfect Competition	Many	Identical	None
Monopoly	One	Unique	High
Monopolistic Competition	Many	Differentiated	Low
Oligopoly	Few	Identical or Differentiated	Medium to High

Additional Info

• Students are encouraged to read current news articles and apply economic theory to real-world events.

• Graphical analysis is a key skill; students should bring calculators to class for cost and margin calculations.

• Changes to the course outline may be announced in class as needed.