Economics 255 Microeconomics

J.R. Carter

Fall 2004

Texts:

Edgar K. Browning and Mark A. Zupan, Microeconomic Theory and Applications, 8th ed. (New York: John Wiley, 2004). Required.

Israel Kirzner, Competition and Entrepreneurship (Chicago: University of Chicago Press, 1978). Required.

Graded Assignments:

Problem Sets 10%

First Exam October 7 30%

Second Exam November 11 30%

Final Exam December 13 (01), 14 (02) 30%

Exemptions from problem sets and midterms require a note from the class dean. Late problem sets are accepted with penalty until answer sheets are distributed. Makeup exams are not given; assignment weights are redistributed. Exams, including the final, must be taken at their appointed time with the section in which the student is registered.

Provisional Course Outline and Reading List

I. Introduction and Calculus Review

Walter Nicholson, Microeconomic Theory, 4th ed. (Chicago: Dryden, 1989), Chap. 2, pp. 27-41, 46-48. (Reserve reading.)

II. Theory of the Consumer

A. Preferences and Utility

Chap. 3, pp. 45-54.

B. Budget Constraint

Chap. 3, pp. 54-59.

C. Choice

Chap. 3, pp. 59-63, 72-74.

Chap. 3, pp. 68-71, and Chap. 5, pp. 122-126.

Chap. 5, pp. 118-120.

Chap. 5, pp. 126-129.

D. Demand

Chap. 3, pp. 64-67.

Chap. 4, pp. 82-86, 103-104.

Chap. 4, pp. 86-98, 98-103.

E. Elasticities

Chap. 2, pp. 33-41.

F. Pareto Efficiency, Exchange, and Prices

Chap. 6, pp. 145-159.

III. Theory of the Firm

A. Production Functions

Chap. 7, pp. 165-173, 173-181.

B. Cost Minimization

Chap. 8, pp. 190-191, 197-206.

C. Cost Curves

Chap. 8, pp. 207-209, 191-197, 209-214.

D. Price Taker Theory

Chap. 9, pp. 226-244, 244-256.

Chap. 10, pp. 268-276.

E. Price Searcher Theory

Chap. 11, pp. 299-313.

Chap. 13, pp. 355-359.

Chap. 11, pp. 317-321.

F. Competition and Entrepreneurship: Austrian Economics as Substitute or Complement of Neoclassical Economics? (Assigned independent reading.)

Kirzner, Chap. 1.

Kirzner, Chap. 2, pp. 30-75.

Kirzner, Chap. 3, pp. 88-112, 131-34.

Kirzner, Chap. 5, pp. 198-211.

Kirzner, Chap. 6.

IV. Theory of Factor Markets

Chap. 16, pp. 441-447, 458-459, 460-461.

Chap. 18, pp. 506-510.

Chap. 17, pp. 466-471, and Chap. 16, pp. 452-456.