Intermediate Microeconomics Assignments Page, Fall 2019

**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 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 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

**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

**Week 7**

**October 7, 2019 Chapter 9 - Costs **

**October 9, 2019 NO CLASS: In K.C. presenting a paper at the MVEA Conference **

**Week 8**

**October 14, 2019 Chapter 10 - Perfect Competition **

**October 16, 2019 Chapter 10 - Perfect Competition continued **

**Week 9**

**October 21, 2019 Review and Catch-up Day**

**October 23, 2019 EXAM II: Chapters 8 - 10 and topics **

**Read Chapter 8 - Production Chapter 8 PPT****Review the exam first**- 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**

**Read Chapter 8 - Production Chapter 8 PPT**- Review: 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

**Do Problems #3, 4, 5, and 6 for Monday**

**Week 5**

- Review: What's a Production Function
- Bring all your materials to review and ask questions
**First Test!****Read Chapter 4 - Demand: Individual and Market Chapter 4 PPT**- Income and Substitution Effects of a Price Change
- Price Consumption Curve: Varying the price of one good in Indifference Curve "space"
- Individual Consumer's Demand Curve (in P-Q "space")
- Income Consumption Curve: The Engel Curve
- Income and Substitution Effects of a Price Change
- Income and Substitution Effects of a Price Sensitive Good
- Market Demand: Aggregating the Individual Demand Curves (adding them horizonally)

**Read Chapter 4 - Demand: Elasticities Chapter 4 PPT**- Price Elasticity of Demand
- Midpoint Formula
- Geometric Interpretation
- Point-Slope Method
- Elasticity and Total Expenditure
- 4 Determinants of Elasticity
- Income Elasticities and Cross Price Elasticities

**Week 3****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 6**

**September 30, 2019 Chapter 8 - Production**

**October 2, 2019 Chapter 8: Production - Continued **

**September 23, 2019 Review Day**

**September 25, 2019 Exam 1, Chapters 1 - 4 **

**Week 4**

**September 16, 2019 Chapter 4 - Demand: Individual and Market**

**September 18, 2019 Chapter 4: Demand: Individual and Market - Continued **

**September 9, 2019 Chapter 3: Consumer Behavior**

**September 11, 2019 Chapter 4: Demand: Individual and Market **

**Week 2**

**September 2, 2019 Labor Day Holiday!!**

**September 4, 2019 Chapter 2: Supply and Demand continued**

**Week 1**

**August 26, 2019** **An Introduction to the Course, Chapter 1**

**August 28, 2019 Chapter 2: Supply and Demand**

email: andrew at andrewparkes.com

*Last Update: October 6, 2019
By Andrew L. H. Parkes, Ph. D. *