TH Moorning _Section 01_

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					                                  Utah Valley University
                               Woodbury School of Business
                                    Fall Semester 2008
                               Microeconomics: MGMT 2010
                                     TR (Section 01)

Instructor:           Dr. Abdus Samad
Office Room:          BU 228
Office Hour:          TW R      10 AM -11:30 AM + walk in or by appointment
OFFICE PHONE: 863-8368
e-mail: <>

COURSE NUMBER:                MGMT 2010
COURSE TITLE:                 Microeconomics

REQUIRED                      Economics, 17th edition by McConnell and Brue
TEXTBOOKS:                    Study Guide

READING LIST:                 ECONOMICS by Michael Parkin, 4th edition, 1998
                              MICROECONOMICS by Parkin and King
(optional)                    EONOMICS by Lipsey, Steiner, and Courant
                              ECONOMICS by Paul Samuelson

CLASS MEETS:                  TR     WB ROOM 240 AT 8:30 – 9:45 AM


This introductory course in microeconomics familiarizes students with the economic way of thinking,
economic concepts, and economic decision making. This enables students to understand economic
theories that seek to predict and explain economic behavior. After completing the course, students
should be able to understand: why economic questions arise from scarcity (limited resources); how
prices are determined and why they change; the meaning of demand and supply elasticities and the
relationship between elasticity and total revenue; the effects of price controls and taxes on goods and
services traded and consumed; factors determining costs and the nature of costs; and how firms, under
different market conditions, make price and output decisions.

        Concepts will be explained/discussed in class. Your participation is required. Do not miss the
class. Additional materials will be handed out to you for augmenting your understanding.


There will be total of 3 exams, therefore, there is no mid term exam.
Due dates of exams and the locations are provided below. If you miss any exam—regardless
of the reason—will receive a maximum of 25% of the exam if the instructor is satisfied.
Exam schedules:
Test #                              Date                                  Location
Test # 1                            October 2, 3 and 4                    Testing Center
Test # 2                            November 6, 7 and 8                   Testing Center
Test # 3                            December 11                           In class

Quiz Policy:

There will be surprised quizzes, usually after the end of chapter/s. So, do not miss the class.
There is no make up quiz.

Home work Policy:

There will be four homeworks. These homeworks will not be graded and are given to enhance
your understanding. The homework must be turned in due date announced in the class.
Solutions of homework will be given in that class.

GRADING Breakdown
                                                             % of Course Grade

Test # 1, and Test # 2                                              50%

       Quizes                                                       20%
       Final Examination                                            30%

     A:   93.0 & up                   B-:    80.0 – 82.9            D+:      67.0 – 69.9
     A-:  90.0 – 92.9                 C+:    77.0 – 79.9            D:       63.0 – 66.9
     B+:  87.0 – 89.9                 C:     73.0 – 76.9            D-:      60.0 – 62.9
     B:   83.0 – 86.9                 C-:    70.0 – 72.9            E:       Below 60.0


Examinations: Exams #1, 2, and 3 will be available in the Testing Center and may be taken at any
time on the three days scheduled between Thursday, Friday and Saturday. You are responsible for
knowing when the Testing Center is open. Allow up to two hours to take a exam. Class will be held on
the day of an exam. Under exceptional circumstances, such as a death in the family, an exam may be
taken late with a maximum credit of 25% , providing timely arrangements are made with the instructor.
Adjust your work and family schedules according to exam date before you take this course.

Progress Reports: An up-to-date Progress Report will be handed out to each of you periodically in
class or in my office, if you miss class or and on my ftp side. Click
on: This will enable you to answer the question: “How am I
doing do far?”. Total scores for all tests, team project and the home work will be provided in class or on

Hand out, Practice questions and other important announcement or information will be provided
on ftp side. Please check regularly my ftp side. Feel free to make copies for your use. In the past,
many students have benefited from working through such practice questions.
        If you have any disability which may impair your ability to successfully complete this course, please
contact the Accessibility Services Department (BU-146). Academic accommodations are granted for all students
who have qualified documented disabilities. Services are coordinated with the Accessibility Services Department.

Policy on Academic Dishonesty:

 Students of this class are expected to support an environment of academic integrity, have the right to
such an environment, and should avoid all aspects of academic dishonesty. Academic Honesty
Academic dishonesty may be defined as the deliberate use of unethical practices in the submission or
completion of work in connection with this class, and/or cheating in any form. Violators of this policy
will be subject to disciplinary action. In keeping with UVSC policy, evidence of academic dishonesty
may result in a failing grade in the course and disciplinary review by the college. Examples of academic
dishonesty include plagiarizing, faking of data, sharing information during an exam, discussing an exam
with another student who has not taken the exam, consulting reference material during an exam, and
submitting a written assignment which was authored by someone other than yourself. This is not
intended as an exhaustive list; additional information on this topic is published in the student handbook
and is available through the UVSC office.

                                  MGMT 2010: Microeconomics
                                     COURSE OUTLINE

Week Number           Topics                                 Study Guide           16th ed. Reading
                                                             Sections              Assignments
                                                                                   (McConnell and
1                                                            .
LAST WEEK OF          Introduction                                                 Chapter 1
August                   Scarcity, Choice, definition of                           (McConnell and
                         economics                                                 Brue)
                         Economic Questions                                        pp. 3-4, 9-10 and
                         Micro- vs. Macro-economics,                               appendix chapter 1
                         Normative VS Positive
2                                                       .
WEEK 1                Wants and resources: Factors of       Chapter 2
(September:           Production                            (McConnell and
                      The Production Possibilities          Brue)
                      Frontier (PPF) Curve                  pp. 22- 34
                      Opportunity Cost,
                      Calculating Opportunity Cost
                      Opportunity Cost Problems
                      Economic system

                   Market system                            Chapter 4
                                                            (McConnell and

                      The U.S. Economy: Private and         Chapter 5
                      Public Sector                         (McConnell and
                                                            73-82, 85-87
WEEK 2 & 3         Demand & Supply                          Chapter 3:
(September):         Definitions of demand, etc.            (McConnell and
                     Law of demand                          Brue)
                     Determinants of demand                    pp. 39-44
                     Demand Schedule and Curve          .
                     Why demand curve downward
                     Sloping: Income & Substitution
                     Changes in Quantity Demanded
                     Changes in Demand
                     Factors for changes in demand

                      Definition of supply                  pp. 45- 47
                      Law of supply
                      Determinants of supply
                      Supply Schedule and Curve
                      Changes in Quantity Supplied
                      Changes in Supply
                      Factors for changes in supply

WEEK 4             Continue                                 Chapter 3:
(September):         Equilibrium price and quantity         (McConnell and
                     Shortages & Surpluses                  Brue)
                     Changes in demand alone                pp. 48-52
                     Changes in supply alone
                     Changes in both demand and

5                  Continue
WEEK 5             Price Ceilings and Floors                Chapter 3:
(September):       (Price Controls)                         (McConnell and
                   Algebra of Equilibrium               .   Brue)
                                                            pp. 52-54
                                                            Chapter 5
6                  Review of Exams and
Week 1 (October)   EXAM 1 COVERS Ch 1, 2, 3, 4 and
WEEK 1 & 2         Demand Elasticity                        .   Chapter 7:
(October) :           Price Elasticity of Demand (PED)          (McConnell and
                      Total Revenue and Demand                  Brue)
                      Calculation of PED                        pp. 112-119
                      Inelastic and Elastic Demand
                      Factors that influence PED and
                           shapes of demand curves
                      Elasticity and total revenue

                                              Fall Break

8                                                           .
WEEK 3(October):   Other Elasticities                           Chapter 7 continue
                                                                (McConnell and
                     Supply elasticity                          Brue)
                     Income Elasticity                          pp.120-124
                     Cross-Price Elasticity
                     Price Elasticity of Supply

                   Elasticity Application:
                      Sales Taxes
9                  Consumer Behavior                        .   Chapter 8
Week 4(Ocober)     Income and substitution effect, Law of       (McConnell and
                   DMU, Theory of consumer behavior             Brue)
                   Preference & Utility                         pp. 128-135, 142-146
                   Indifference Curve
                   Budget line and optimal bundle
                   Utility Maximization

)                  EXAM 2
                   COVERS Ch 7 and 8

WEEK 5             Costs and Production
(October):            Economic Cost: Explicit and               Chapter 9:
                      implicit.                             .   (McConnell and
                      Economic, accounting, and                 Brue)
                      normal                                    pp. 148- 151
                        profits; differences and
                      Short run vs. long run
                      Production in the Short Run:
                        TP, MP, and AP defined
                        Law of diminishing returns
                        Marginal vs. Average Product
11             Continue
WEEK 2         Short-Run Costs
                  Total Costs (TC, TFC, TVC)
(November) :                                                               Chapter 9:
                  Average Cost (ATC,AVC, AFC)                              (McConnell and
                  Marginal Cost (MC)                                       Brue)
                                                                           pp. 154-160
                 Why ATC & AVC are U-shaped
                 Relationship between product and
                   cost curves
               Long-Run Costs
                 Long Run Average Cost Curves
                 Economies of Scale
                 Diseconomies of Scale
                 Production and Cost Problems
                 - Isoquants
                 - MRTS
                 - Isocost
                 - Choosing optimum inputs

WEEK 3                                                                     Chapter 10:
(November):    Pur/ Perfect Competition                                    (McConnell and
                   Four market                                             Brue)
                 Characteristics                     Teacher’s handout     pp. 169- 188
                  Price Taking Behavior
                  Demand, Price, and Revenue:
                     Economic and Normal Profit      See Lecture notes
                     Revenue: TR, MR, and AR         on ftp side

WEEK 4         -continued                                                  Chapter 10
(November):      Firm Decisions in the short run:                          Continue
                    Output decision: 2 methods
                    Shutdown decision                See Lecture notes
                    Supply curves: firm & industry   on ftp side
                 Output, Prices, and Profit:
                    Short-run equilibrium            additional practice
                    Effect of changes in demand      problems will be
                    Understanding normal profit      assigned
                    Three possible profit outcomes
                 Output & Profit Calculation

WEEK 5         -continued                                                  Chapter 10
(November):      Firm Decisions in the Long Run:                           Continue
                    Entry and exit
                    Change in plant size
                    Long-run equilibrium
                    Firms earn only normal profit
WEEK 1           Pure Monopoly                                              Chapter 11:
(December):      Introduction to Monopoly,              See Lecture notes   (McConnell and
                 How monopoly arises i.e. Barriers to   on ftp side         Brue)
                 entry                                                      pp. 194- 211.
                 Monopoly demand, MR                    See handout too
                 Output and price determination
                 Single-price monopolies
                 Price discrimination
                 Monopoly vs. perfect competition
                 Comparison for efficiency

WEEK 2           Monopolistic Competition               See Lecture notes   Chapter 12:
(December):                                             on ftp side         (McConnell and
                 Technology and Efficiency
                                                                            Chapter 13
                 Govt. & Market failure                                     Chapter 17

                 Revision for final exam

FINAL EXAMS: Chapters for final exam will be announced in the class

a)    Instructor reserves the right to change exam date/s.

b)    Instructor reserves the right to add and drop topic/s depending upon the
       progress and the performance of the class.

      I wish you the best of luck !

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