Intermediate Microeconomics Assignments, Fall 2018

Intermediate Microeconomics Assignments Page, Fall 2018

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Week 15

December 3, 2018 Chapter 16: Externalities review from last class and General Equilibrium

Chapter 16: Externalities Chapter 16 PPT
- Externality Quiz
- Public Goods
  - Excludable or not? Rival or not?
  - Free River Problem
- The Tragedy of the Commons (overuse)
- Public Goods PPT to come soon
- General Equilibrium
  - Efficient Allocations:
    - MRS = MRS
    - MRTS = MRTS
    - MRS = MRT
- Welfare Economics
  - First Fundamental Theorem of Welfare Economics: Any competitive equilibrium leads to an efficient allocation of resources
  - Second Fundamental Theorem of Welfare Economics: Any efficient aloocation can be sustaiable by a competitive equilibrium
  - A little more about these two theorems

December 5, 2018 Review - All Chapters covered

Review any material you wish

Week 16

Wednesday, December 12, 12:30 to 2:30 pm FINAL EXAM - ALL Chapters covered

PAST ASSIGNMENTS:

Week 14

November 26, 2018 Chapter 14 - Labor Supply (Not Monopsony - yet)

Review the exam
Read Chapter 14 - Labor Supply (pp. 459-472) Chapter 14 PPT
- The Labor Market
  - Perfectly Competitive firm's demand for labor
  - Market Demand for Labor
  - Imperfect Competitor's Demand for Labor (MRP vs VMP)
- Supply of Labor
  - The Labor-Leisure Model
  - Backward Bending Supply Curve for Labor
- Leisure Demand
- Market Supply Curve

November 28, 2018 Chapter 16: Externalities

Read Chapter 14 - Labor Supply (pp. 459-472) Chapter 14 PPT
- The Labor Market
  - Perfectly Competitive firm's demand for labor
  - Market Demand for Labor
  - Imperfect Competitor's Demand for Labor (MRP vs VMP)
- Supply of Labor
  - The Labor-Leisure Model
  - Backward Bending Supply Curve for Labor
- Leisure Demand
- Market Supply Curve
- An Alternative Labor-Leisure set of slides
Chapter 16: Externalities Chapter 16 PPT
- Externalities
  - Bystander effect:
  - Negative Externalities
  - Positive Externalities
- Coase Theorem
  - Private Solutions
- Property Rights
- Externalities - The Pigouvian Tax and Subsidy should be your focus.

November 19, 2018 Exam III: Chapters 11, 12, and 13

November 21, 2018 Have a Happy Thanksgiving!

Review Day

Week 12

November 12, 2018 Veterans Day Holiday

November 14, 2018 Chapter 13: Monopolistic Competition and Oligopoly

Read Chapter 13 - Oligopoly and Monopolistic Competition Chapter 13 PPT
- Oligopolies:
  - The Cournot Model
  - The Bertand Model
  - The Stackelberg Model
  - Comparing the Outcomes
- Monopolistic Competition
  - The Chamberlin Model
- A Spatial Interpretation of Monopolistic Competition
- Consumer Preference and Advertising

November 5, 2018 Chapter 11 - Monopoly continued

Chapter 11 - Monopoly continued
- Graphing a Monopoly
- The Profit Maximizing Markup
A Monopolist has no Supply Curve
Price Discrimination
Efficiency Loss from Monoply
Public Policy Torward Natural Monopoly
Does Monopoly Suppress Innovation?

November 7, 2018 Chapter 13: Monopolistic Competition and Oligopoly

Read Chapter 13 - Oligopoly and Monopolistic Competition Chapter 13 PPT
- Oligopolies:
  - The Cournot Model
  - The Bertand Model
  - The Stackelberg Model
  - Comparing the Outcomes
- Monopolistic Competition
  - The Chamberlin Model
- A Spatial Interpretation of Monopolistic Competition
- Consumer Preference and Advertising

Week 10

October 29, 2018 Chapter 11 - Monopoly

Review Exam 2 - Quiz

Read Chapter 11 - Monopoly Chapter 11 PPT
- Five Sources of Monopoly
- Define Monopoly
- 1. Control of Inputs, 2. Economies of Scale, 3. Patents, 4. Network Economies, 5. Gov't Licenses
- Profit Maximization for a Monopolist
- Total Revenue and Marginal Revenue curves
- Marginal Revenue and elasticity
Graphing a Monopoly
The Profit Maximizing Markup

October 31, 2018 NO CLASS - MVEA Conference

Week 9

October 22, 2018 Review and catch-up day

Review as well as discussing other topics or finishing Chapters 8 - 10
Review: Perfect Competition in the Long-run
- Perfect Competition in the Long-run ICI - Demand decreases
- Adjustments in the LR
- The Market and the Firm
- The Invisible Hand
- The Long-run Competitive Industry Supply Curve
- The Elasticity of Supply
- Applying the Competitive Model

October 24, 2018 EXAM II: Chapters 8 - 10 and topics

Week 8

October 15, 2018 Chapter 10 - Perfect Competition

Read Chapter 10 - Perfect Competition Chapter 10 PPT
- Goal of Profit Maximization
- 4 Conditions for Perfect Competition
- Short-run Condition for Profit Maximization
- The Shutdown Condition
- Short-run Competitive Industry Supply
- Short-run Competitive Equilibrium
  - The efficiency of short-run competitive equilibrium
  - Producer Surplus

October 17, 2018 Chapter 10 - Perfect Competition continued

Perfect Competition in the Long-run
- Perfect Competition in the Long-run ICI - Demand Increases
- Adjustments in the LR
- The Market and the Firm
- The Invisible Hand
- The Long-run Competitive Industry Supply Curve
- The Elasticity of Supply
- Applying the Competitive Model

October 21, 2018 Minimum Wage Paper due on BbLearn before 11:59 pm.

Week 7

October 8, 2018 Chapter 9 - Costs

Read Chapter 8 - Production Chapter 8 PPT
- What's a Production Function
  - Fixed and Variable Inputs
  - Production in the Short-run
  - Marginal and Average product curves
  - Revisit the MP and AP of labor curves
  - Production in the Long-run
    - Isoquants
    - Marginal Rate of Technical Substitution
    - Returns to Scale
    - Increasing Returns to Scale
Read Chapter 9 - Costs Chapter 9 PPT
- Short-run (at least one input if fixed) - usually we use Labor as our variable factor
- TC = TFC + TVC
  - Fixed costs and Variable cost - graphing
  - So ATC = AFC + AVC
  - Marginal costs - change in cost due to a change in quantity
  - Graphing the cost curves

October 10, 2018 Chapter 9 - Costs continued

Graphing cost curves
Allocating between two production activities
- Relationship amoung MP, AP, MC, and AVC - it's all about wages
- Cost minimization
- The choice between the optimal input choice and long-run costs
- The Long Run Cost Structure

Week 6

October 1, 2018 Chapter 8 - Production

Read Chapter 8 - Production Chapter 8 PPT
- Review the exam first
- A little Calculus - Consumer Demand Theory

October 3, 2018 Chapter 8 - Production continued

Read Chapter 8 - Production Chapter 8 PPT
- What's a Production Function
  - Fixed and Variable Inputs
  - Production in the Short-run
  - Marginal and Average product curves
  - Revisit the MP and AP of labor curves
  - Production in the Long-run
    - Isoquants
    - Marginal Rate of Technical Substitution
    - Returns to Scale
    - Increasing Returns to Scale

September 24, 2018 Topics in Chapter 5 and Review

Review

September 26, 2018 EXAM I: Chapters 1 - 4 and topics

Week 4

September 17, 2018 Chapter 4 - Demand: Individual and Market continued

Read Chapter 4 - Demand: Individual and Market Chapter 4 PPT
- We will begin Chapter 4 again, briefly covering the PCC and ICC
- Income and Substitution Effects of a Price Change
  - A Normal good: SE and IE change in the same direction
  - An Inferior good: SE<0 and IE>0 but SE is greater than IE
  - A Giffen Good: the IE dominates the SE so the demand curve is upward sloped

September 19, 2018 Finish Chapter 4 - Demand: Elasticities

Elasticities: responsiveness
- Consumer responsiveness to a price change
- Price Elasticity of Demand
- Dependence of Market Demand upon Income
- Price Elasticity of Demand - the details
- Income Elasticity
- Cross Price Elasticity
- Price Elasticity of Supply
Dependence of Market Demand upon Income

Week 3

September 10, 2018 Chapter 3: Consumer Behavior

Read Chapter 3 - Budget Constraints: Chapter 3 PPT
- What is the opportunity cost of one good in terms of the other (slope of the budget constraint)
- How does a price change cause a rotation in the Budget Constaint?
- If income increases, what does that cause?
- 4 Properties of Perference Orderings (Axioms)
- Indifference Curves and the Marginal Rate of Substitution
- What is a corner solution?
- Perfect substitutes and perfect complements

September 12, 2018 Chapter 4: Demand: Individual and Market

Read Chapter 3 - Budget Constraints: Chapter 3 PPT
- 4 Properties of Perference Orderings (Axioms)
- Indifference Curves and the Marginal Rate of Substitution
- What is a corner solution?
- Perfect substitutes and perfect complements
Read Chapter 4 - Demand: Individual and Market Chapter 4 PPT
- Income and Substitution Effects of a Price Change

Week 2

September 3, 2018 Labor Day Holiday!!

Enjoy

September 5, 2018 Chapter 2: Supply and Demand continued

Finish S & D

Read Chapter 2 - Chapter 2 PPT
Some Algebra
Application: Taxation
- Appendix - How do taxes affect consumers and producers?
- The incidence of the tax: Who bears the burden of the tax?
- So it does NOT matter who pays the government (S or D can shift, it matters not!)
EIA numbers in a .pdf file - updated a week ago

Week 1

August 27, 2018 An Introduction to the Course, Chapter 1

Read Chapter 1 - Chapter 1 PPT
What is Microeconomics About?
- The Cost-Benefit Analysis
- The Marginal Analysis
- Positive vs. Normative Analysis

August 29, 2018 Chapter 2: Supply and Demand

Read Chapter 2 - Chapter 2 PPT
The Law of Supply and Demand
- Equilibrium, Surplus, and Shortage
- Determinants of Demand and Supply
- Some Algebra

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email: andrew at andrewparkes.com
Last Update: December 3, 2018
By Andrew L. H. Parkes, Ph. D.