Erik C. Helm
Office: 333C Purnell Hall
Office Hours:
Phone: 831-6432
Monday and Wednesday
E-mail: helme@udel.edu
9:00 a.m. - 10:00 a.m.
Homepage: www.udel.edu/Economics/helme
Text:
Microeconomic Theory and Applications, 6th ed., Browning and Zupan
Study Guide to Microeconomic Theory and Applications, 6th ed., Lunn
Course Requirements and Grade Determination (Weights):
Problem Sets and Quizzes
= 20%
2 Midterm Examinations (25% each)
= 50
Final Examination
= 30%
Tentative Examination Dates:
First Midterm Exam
October 6
Second Midterm Exam
November 6
Final Exam - will be given during the regularly scheduled final exam
time period for this course
Tentative Course Outline:
1. REVIEW
1. Introduction to Microeconomics?Ch.
1
2. Supply/Demand and Elasticity?Ch.
2
2. CONSUMER THEORY ? The Theory of Consumer Demand
1. Basics -- The Budget
Constraint and Consumer Preferences ?Ch.3, Sections 1 & 2
2. Solving the Problem ?
Utility Maximization 3.3
3. Changing the Problem
and Re-solving It ? Comparative Static Analysis
1. Income Changes and Income Effects ? 3.4
2. Price Changes and Demand Functions ? 4.1? 4.4
4. Applications ?
Ch. 5
1. Subsidies ? 5.1
2. Borrowing and Saving ? 5.4
3. Investor Choice ? 5.5
3. THEORY OF THE FIRM: PRODUCTION AND COST
1. Production Concepts
1. Production in the Short Run ? 6.1-6.2
2. Production in the Long Run ? 6.3-6.4
2. Costs of Production
1. Short Run Cost Minimization and Cost Curves ?7.1-7.3
2. Long Run Costs
(1) Cost- Minimization ?7.4-7.5
(2) Long Run Cost Curves ? 7.6
3. Implications/Applications?7.7-7.8
4. Economies of Scope ?
7.9
4. PROFIT MAXIMIZATION AND MARKET STRUCTURE
1. Perfect Competition
1. Basics ? Ch. 8
(1) Short Run ?-Maximization and Market Supply ? 8.1- 8.6
(2) Long Run ?-Maximization and Market Equilibrium ? 8.7-8.9
2. Using the Competitive Model ? Ch 9.
(1) Evaluating Competitive Markets ? 9.1
(2) The Effects of Regulation and Deregulation ? 9.3 & 9.4
(3) The Effects of International Trade ? 9.5-9.6
2. Monopoly
1. Basics?Ch.10
(1) ?-Maximization ? 10.1-10.3
(2) Monopoly Power and Its Effects ? 10.4-10.6
2. Using Monopoly Power ? Price Discrimination?11.1-11.3
a. Oligopoly & Game
Theory ? Ch. 12-14
3. Basic Oligopoly ?12.2, 12.4
4. Basic Game Theory ? 13.1-13.2
3. Using Non-competitive
Market Models ? Monopoly and Natural Monopoly ? 14.1? 14.4
5. INPUT MARKETS
a. Theory?Ch. 15 Section
1(short run analysis only), 2
6. MARKET FAILURE ? Ch. 19
1. Public Goods Problems
? 19.1-29.2
2. Externalities ? 19.3
Procedures and Policies:
1. Attendance is mandatory. You are responsible for all assignments,
notes, announcements, and materials presented in class.
2. Once in class, stay until the end of the lecture.
3. All assignments are to be turned in on the day they are due.
Any late assignments without a University recognized excuse will automatically
start at 50% credit. No late assignments will be accepted without a University
recognized excuse after the assignment has been returned to the class.
4. If a midterm or final exam is missed only students with University
recognized excuses will be able to take a makeup exam.
5. Cheating is not tolerated. Confirmed cases of academic dishonesty
will be pursued in accordance with University regulations.
6. A passing grade in ECON 151 is the prerequisite for this course.