Intermediate Microeconomics Assignments Page, Fall 2018

**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

**Review any material you wish**

**Week 15**

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

**December 5, 2018 Review - All Chapters covered **

**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

**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.

**Week 13**- Review Day
**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 11****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?
**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

**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****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

**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

**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

**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

- What's a Production Function
**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

**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

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

**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

**Week 5**

- What's a Production Function
**Review****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

**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
**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

**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

**Enjoy****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

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

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

**Week 14**

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

**November 28, 2018 Chapter 16: Externalities **

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

**November 21, 2018 Have a Happy Thanksgiving!**

**Week 12**

**November 12, 2018 Veterans Day Holiday **

**November 14, 2018 Chapter 13: Monopolistic Competition and Oligopoly **

**November 5, 2018 Chapter 11 - Monopoly continued **

**November 7, 2018 Chapter 13: Monopolistic Competition and Oligopoly **

**Week 10**

**October 29, 2018 Chapter 11 - Monopoly **

**Review Exam 2 - Quiz **

**October 31, 2018 NO CLASS - MVEA Conference **

**Week 9**

**October 22, 2018 Review and catch-up day **

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

**Week 8**

**October 15, 2018 Chapter 10 - Perfect Competition **

**October 17, 2018 Chapter 10 - Perfect Competition continued **

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

**Week 7**

**October 8, 2018 Chapter 9 - Costs **

**October 10, 2018 Chapter 9 - Costs continued **

**Week 6**

**October 1, 2018 Chapter 8 - Production **

**October 3, 2018 Chapter 8 - Production continued **

**September 24, 2018 Topics in Chapter 5 and Review**

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

**Week 4**

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

**September 19, 2018 Finish Chapter 4 - Demand: Elasticities **

**Week 3**

**September 10, 2018 Chapter 3: Consumer Behavior**

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

**Week 2**

**September 3, 2018 Labor Day Holiday!!**

**September 5, 2018 Chapter 2: Supply and Demand continued**

**Week 1**

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

**August 29, 2018 Chapter 2: Supply and Demand**

email: andrew at andrewparkes.com

*Last Update: December 3, 2018
By Andrew L. H. Parkes, Ph. D. *