ECON 34000

Intermediate Microeconomic Theory
Ben Van Kammen - Online - Summer 2019

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About the Course
This is an upper division Economics course required for all Economics majors. It analyzes the choices of individual agents in the arenas of production and consumption of goods; microeconomic choices are the basis for an economy’s resource allocation, i.e., its solution to the economizing problem: how choices reconcile unlimited wants with limited resources. Mastery of its content amply prepares students for studying applied economics, e.g., labor, international trade, and industrial organization.
Course Goals/Learning Objectives
In this class students will:
 
1. Analyze the means by which individuals make rational choices.
2. Describe equilibrium outcomes of individuals’ choices.
3. Evaluate the market outcome in terms of economic efficiency.
4. Identify and resolve problems with how individuals and markets allocate an economy’s scarce resources.
5. Practice analytical and quantitative reasoning skills.
Sample Assignment
The fixed costs of going into the market for pet grooming are $45.  Variable cost is (3q2), where q denotes firm output.  Demand for pet grooming is given by:  P = 45 – Q, where Q is market quantity demanded.
 
a.  What is the minimum price for a pet grooming firm to break even?
 
b.  How many pets would the representative firm groom if the break even price prevails (i.e., in long run perfect competition)?
 
c.  How many “groomings” does the market demand at the break even price?
 
d.  How many “groomings” would a monopolist produce in this market?  Assume he would have the same cost function as a competitive firm. What price would he charge?
 
e.  If there was a monopolist in this market, he may attempt to create a barrier to entry.  Give an example of a barrier to entry, how he  might erect it, and solve for the maximum this monopolist will pay to maintain his monopoly in this manner.

ECON 34000

Course Catalog
ECON 34000 Intermediate Microeconomic Theory

Description
Credit Hours: 3.00. This course provides students with the techniques needed to model and analyze the behavior of individual economic agents. It introduces a variety of techniques that will allow students to solve business problems and make informed personal economic decisions. The course covers topics from consumer behavior and demand, decisions under uncertainty, production and cost, factor demand, market structure, pricing strategies, and strategic behavior. This is an upper-division economics course required for all economics majors and it serves as a foundation for higher level elective courses in economics. Typically offered Fall Spring Summer.
3.000 Credit hours
Levels:  Graduate, Professional, Undergraduate
Schedule Types:  Distance Learning, Lecture
Offered By:  School of Management
Department:  School of Business Admin
Course Attributes
S General Education, Upper Division
May be offered at any of the following campuses:  West Lafayette Continuing Ed West Lafayette
Learning Objectives
1. Analyze the means by which individuals and firms make rational choices when demanding and supplying goods and services. 2. Describe the equilibrium outcomes of individuals and firms interacting in markets. 3. Evaluate market outcomes in terms of economic efficiency. 4. Practice analytical and quantitative reasoning skills. 5. Identify and describe the management and pricing strategies of competitive, monopolistic, monopsonistic, and oligopolistic firms.
Prerequisites
(Undergraduate level ECON 25100 Minimum Grade of C- or Undergraduate level ECON E1030 Minimum Grade of C- or Undergraduate level ECON E2010 Minimum Grade of C- or Undergraduate level AGEC 20300 Minimum Grade of C- or Undergraduate level AGEC 20400 Minimum Grade of C-) and (Undergraduate level MA 16010 Minimum Grade of C- or Undergraduate level MA 16100 Minimum Grade of C- or Undergraduate level MA 16500 Minimum Grade of C- or Undergraduate level MA 22300 Minimum Grade of C-)
Other Information
Restrictions:  Must be enrolled in one of the following Majors: Accounting Actuarial Science Advanced Accountancy Actuarial Science Honors Economics Honors Economics Finance General Management IM/Analytical Consulting IM/Computer Science IM/Data Analytics IM/Economics IM/Economics Honors IM/Engineering IM/Financial Engineering IM/Mgmt Info Systems IM/Manufac & Svc Operations IM/Operations Management IM/Quantitative Methods IM/Science IM/Sci, Tech, Engr & Math Management Marketing IM/Oper & Supply Chain Mgmt Supply Chain Info & Analytics Strategy & Organiz Mgmt