ECO 2302 - Principles of Microeconomics - Fall, 2005

Tuesday and Thursday, 11:00-12:15, GR 2.302

Instructor: Dan O'Brien email: obri@utdallas.edu

Office hours: Tuesday, 2-3 PM phone: 972-883-4700
or by appointment office: GR 3.824

TA: Raina Hossain email: rzh051000@.utdallas.edu

Office hours: Wednesday 12-1.30 PM phone:
office: GR 2.822

Text: Bradley R. Schiller, The Micro Economy Today (10th edition), McGraw-Hill

This course introduces the student to the basic concepts that comprise microeconomic theory
using illustrative examples from the real world, as well as mathematical and graphic techniques.
The course describes the role of microeconomics in allocation of scarce resources, consumer
decisions and constraints, producer objectives and decision processes, types of markets, market
failures, the role of government and financial markets. The course will utilize online components
through WebCT including homework assignments, extra credit online problems and guided
access to web sites for each topic. Students will be expected to participate in discussion of
current economic issues during each class period and to keep abreast of the text and on line
material.

Class Date Topics Read/Study

Thursday Introduction
Aug. 18 Course objectives
Course requirements
Syllabus
Using WebCT

Tuesday Introduction – scarcity Chapter 1

Aug. 23 Allocation decisions
Production possibilities
Opportunity costs
The invisible hand

Thursday The roles of microeconomics and macroeconomics

Aug. 25 Theory and reality
Graphs and math

Tuesday The U.S. Economy Chapter 2

Aug. 30 GDP
Growth
Productivity
Factors of production
Inequality and equity
The future of markets

Thursday Supply and demand Chapter 3

Sept. 1 Market participants
Ceteris paribus
Shifts and changes in demand

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 ECO 2302 - Principles of Microeconomics - Fall, 2005
Tuesday and Thursday, 11:00-12:15, GR 2.302

Tuesday Determinants of supply

Sept. 6 Market equilibrium
Supply and demand analysis
Shortage and surplus

Thursday The public sector Chapter 4

Sept. 8 Size of the U.S. Government
Growth, history, roles

Tuesday Market failure

Sept. 13 Externalities
Market power
Instability and inequity
Government failure

Thursday Midterm I
Sept. 15

Tuesday Review midterm I

Sept. 20 Demand for goods Chapter 5
Individual and market demand
Demand curve
Price elasticity
Income and cross-price elasticity

Thursday Indifference curves

Sept. 22 Budget constraint
Utility maximization

Tuesday Costs of production Chapter 6

Sept. 27 Production function
Short and long run
Marginal analysis, marginal productivity
The law of diminishing returns

Thursday Economic cost

Sept. 29 FC, VC, TC, AFC, AVC, ATC, MC
Long run cost
Economies of scale

Tuesday Profit Chapter 7

Oct. 4 Short run production
Perfect competition
Profit maximization

Thursday Short run shut down decision

Oct. 6 Short run supply
Review Chapters 5-7

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 ECO 2302 - Principles of Microeconomics - Fall, 2005
Tuesday and Thursday, 11:00-12:15, GR 2.302

Tuesday Midterm II - Chapters 5-7

Oct. 11

Thursday Review Midterm II

Oct. 13 Competitive markets Chapter 8
Price taking
Allocative efficiency
Production efficiency

Tuesday Market power - monopoly Chapter 9

Oct. 18 Monopolist profit maximization

Thursday Advantages and disadvantages of monopoly

Oct. 20 Monopoly vs perfect competition
Introduction to oligopoly

Tuesday Oligopoly Chapter 10

Oct. 25 Determinants and measurement of market power

Thursday Oligopolistic behavior

Oct. 27 Introduction to game theory
Examples
Review Chapters 8-10

Tuesday Midterm III - Chapters 8-10

Nov. 1

Thursday Review Midterm III

Nov. 3 Labor markets Chapter 15
Labor supply and demand
Marginal product of labor

Tuesday Wage rates

Nov. 8 Choosing among inputs
The law of equal marginality

Thursday Regulation Chapter 12

Nov. 10 Natural monopoly
Types of regulatory control

Tuesday Environmental protection Chapter 13

Nov. 15 Externalities
Regulatory responses

Thursday Taxes Chapter 18

Nov. 17 Redistribution
The European model

Tuesday Midterm IV - Chapters 15, 12, 13, 18

Nov. 22

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 ECO 2302 - Principles of Microeconomics - Fall, 2005
Tuesday and Thursday, 11:00-12:15, GR 2.302

Tuesday Review Midterm IV

Nov. 29 Course grades available

Attendance on non-test days is not required. Class attendance, however, is important since it may
help each student to better understand the material. An attendance sheet will be passed around
for signature during each class period. Attendance and class participation will be considered if
you are "on the borderline" when final class grades are computed.

On line quizzes and optional web problems will usually be assigned for each chapter. You are
invited to form groups to work on the extra-credit web problems, however, each student must
submit her/his own work for credit.

The University's policy on academic dishonesty, such as cheating on exams or plagiarism will be
strictly enforced. If you have a question concerning potential violations, please contact me at
once.

Test grades will be curved by normalizing the highest score to 100%. Letter grades for the course
will be assigned as follows:

98-100 A+
92-97 A
90-91 A-
88-89 B+
82-87 B
80-81 B-
78-79 C+
72-77 C
70-71 C-
68-69 D+
62-67 D
60-61 D-
Less than 60 F

Grades will be calculated considering exams, homework and participation as follows:

Each midterm exam 20%
Quizzes and class participation 20%

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