ECONOMICS 420K - MICROECONOMIC THEORY

R. Dusansky

Office:BRB 2.102E

Telephone: 471-3664

E-mail: Dusansky@eco.utexas.edu

OFFICE HOURS: Tuesday And Thursday

1:00-2 00 And By Appointment

COURSE PREREQUISITES

Economics 304K, Economics 304L and the calculus sequence.

TEXTBOOK

Walter Nicholson and Christopher Snyder, Microeconomic Theory: Basic

Principles and Extensions, 10th edition.

TAKE-HOME QUIZES

A take-home quiz will be distributed each Friday and will be collected

at the BEGINNING of class one week later. Each quiz will usually have

three questions. Completed take-home quizes must be submitted on

8.5 x 11.0 inch paper. Late submissions will not be accepted.

(NOTE: if you submit a take-home quiz EARLY, give it directly to the TA).

EXAM DATES and FINAL GRADE

Your final grade will be based on the average quiz score (25%)

and three term exams (25% each).

THE TERM EXAMS WILL BE GIVEN ON:

OCTOBER 1 (Thursday),

NOVEMBER 3 (Tuesday) and

DECEMBER 4 (Thursday).

PLUS/MINUS grades will be assigned for the final grade.

MISSED EXAM POLICY

A missed exam will result in a failing grade, UNLESS acceptable medical

documentation is provided. If a make-up exam is not offered, each of the

other two exams will carry a weight of 37.5% instead of 25%. If a make-up

exam is offered, it may be written or oral. If you are eligible to take

a make-up exam, be prepared to be examined very shortly after the missed

scheduled exam.

WEEKLY RECITATION SESSION

Your TA is Jorge Barro. Each Friday he will review the weekly quiz and

present supplementary material for which you are responsible. Attendance

is MANDATORY. Feel free to contact Mr. Barro during his office hours or

by special appointment. He is devoted to helping you master the material

in this course.

TA email address: jorge.barro@gmail.com

TA Office location: BRB 4.118

TA Office Hours:Wednesday & Thursday, 10:00-11:00 and by appointment.

WARNING

Although class attendance is not used in determining the final grade,

ATTENDANCE IS REQUIRED. I supplement the text material in many ways.

You are responsible for the assigned material in the text AND

for the material presented in class.

REQUIRED READING

A. PERSONAL REVIEW

Mathematics of Optimization...................Chapter 2

B. CHOICE AND DEMAND

Preferences and Utility.......................Chapter 3

Utility Maximization and Choice...............Chapter 4

Income and Substitution Effects...............Chapter 5

Demand Relationships Among Goods..............Chapter 6

Pareto Efficiency in Consumption..............Chapter 13, pp467 and 476-478

Intertemporal Optimization....................Class Lecture

C. PRODUCTION AND SUPPLY

Production Functions..........................Chapter 9

Costs.........................................Chapter 10

Profit Maximization and Input Demand..........Chapter 11

D. COMPETITIVE MARKETS AND MARKET FAILURE

Perfect Competition and Partial Equilibrium...Chapter 12

General Equilibrium and Pareto Optimality.....Chapter 13

Monopoly and Price Discrimination.............Chapter 14

Social Choice and Voting......................Class Lecture

E. SELECTED TOPICS (If Time Permits)

Strategy and Game Theory......................Chapter 8

Externalities and Public Goods................Chapter 19

SUBJECT MATTER OF CLASS MEETINGS

August 27 Methodology

September

1 Preferences, axioms of choice and indifference curves

3 Utility functions and the budget constraint

8 Examples of budget constraints with "kinks"

10 Utility maximation, demand and duality

15 Income and Substitution effects

17 Properties of demand functions and the Slutsky Equation

22 Economic analysis: applications 1

24 Economic analysis: applications 2

29 Pareto efficiency in consumption

October

1 EXAM #1

6 Intertemporal optimization

8 Applications and analysis

13 Production functions and isoquants

15 Returns to scale and technical progress

20 Cost minimization

22 Short-run and long-run cost functions

27 Output choice and profit maximization

27 Firm supply and input demand

November

3 EXAM #2

5 Perfect Competition and partial equilibrium

10 Long-run equlibrium and market entry

12 Pareto efficiency in production

17 General Equilibrium and the Welfare Theorems

19 Monopoly and welfare loss

24 Price discrimination and regulation

December

1 Social choice, the Impossibility Theorem and voting

3 EXAM #3

NOTICE: Students with disabilities may request appropriate academic

accommodations from the Division of Diversity and Community

Engagement, Services for Students with Disabilities, 471-6259