ECO 3310, Spring 2006

Intermediate Microeconomic Theory

T & R 9:30-10:45 a.m.

Instructor: Dr. Barry J. Seldon Office Hours: M 10:00-11:15 a.m.

Office: Green 3.806 or by appointment
Office Phone: (972) 883-2043 (Call my office to set appointment)
e-mail: seldon@utdallas.edu

Course Description: This is an intermediate-level course in microeconomic theory. Topics

include the theory of the household (utility maximization and demand), the theory of the firm
(cost minimization/profit maximization and supply), market structure (competition, monopoly,
oligopoly), and (time permitting) markets for factors of production.

Course Objective: The objective of this course is to broaden and deepen the student’s
understanding of microeconomics so that this understanding can be brought to bear upon further
economics courses and the student’s decision-making abilities in his/her life.

Prerequisite Knowledge: It is assumed that the student has taken Principles of Microeconomics
(ECO 2302) and understands economics at the level of that class. As usual in economics, graphs
and math are used in the textbook and in the lectures. If you have not yet taken Techniques for
Economic Research (ECO 3304), add it now. You will do better in this class and all your other
economics classes as a result.

Textbooks: Pindyck and Rubinfeld, Microeconomics (6th ed.)

Suslow and Hamilton, Study Guide to Accompany Microeconomics (6th ed.)

The Student’s Responsibility With Regard to Readings and Lectures: The student is responsible for
all lectures and assigned readings. The lecture will diverge from the reading where appropriate to
reinforce understanding of the material or to introduce ideas not contained in the textbook. Reading
and lectures are complements and should be consumed jointly. The student would be ill advised to
miss lectures or to neglect readings. If a student must miss a lecture, then he or she should arrange to
obtain copies of lecture notes from other students in the class. As is true with all economics texts,
the reading will require a few passes before the student will be comfortable with the material.

Grades: The course grade will be based on three exams and homework, weighted as follows:
Homework: 10% Exam 2: 30%
Exam 1: 25% Final: 35%

Exam grades will be curved by normalizing the highest score in the class on any exam to 100%.
Then letter grades are assigned according to the following:

96-100% A+ 80-84 B 64-68 C- 0-52 F

92-96 A 76-80 B- 60-64 D+
88-92 A- 72-76 C+ 56-60 D
84-88 B+ 68-72 C 52-56 D-
Policy Regarding Examinations: The student is expected to take the exams in class at the same
time as his or her classmates. If the student does not take an exam with the rest of the class then
he or she will be given a different exam from the rest of the class. The questions are likely to be
more difficult, especially when the student has had more time to study than did his or her
classmates. The grade for such a make-up exam will necessarily be based by the normalization
procedure outlined above, so the grade on a make-up exam will probably be lower than the
student would have made if he or she took the exam at the assigned time.

Final Exam: The FINAL EXAM is scheduled for Thursday, April 27, at 8:00 a.m. All students
are required to take the final at that time. No exceptions will be granted. The final will last from
8:00-9:15. Students who arrive late will not have as much time for the final as his/her classmates.

Homework: Homework problems will be assigned regularly, and you are invited to form groups
to work on the homework. This is done to encourage you to talk over micro theory with others in
the class. The homework will be collected at the beginning of the class meeting (not before or
after class) when the homework is due. Late homework will not be accepted. Homework will be
graded as "acceptable", "unacceptable", or "not turned in on time". The homework will be
"acceptable" if you turn in a good effort in your own handwriting (for example, don't photocopy
your classmate's answer and don't assign a classmate to write up everyone's answer to one
particular question). Because you can work on homework together, everyone should be able to
earn an "acceptable" if everyone contributes to the effort.

Homework will be graded as follows: Acceptable homework is assigned a score of 20,

unacceptable homework is assigned a score of 10, and late or missed homework is assigned a
score of 0. At the end of the semester, your scores will be summed and divided by the total
number of possible points (20 times the number of homework assignments). Then the grading
scheme described above will be applied.

Policy Regarding Grades of Incomplete: No grade of incomplete will be given except in the direst of
circumstances and with authoritative evidence regarding the need for such a grade.

Academic Dishonesty: Academic dishonesty will not be tolerated. Any student who cheats will be
subject to the harshest punishment possible.

General Attendance Policy: While attendance on test days is mandatory, attendance on non-test
lecture days is not required. Nevertheless, I want to know who's coming to class. To that end, I
will pass around an attendance sheet to be signed by attendees during each class meeting.
Nonattendance on lecture days will not hurt you so long as you learn and understand perfectly the
material covered in your absence (lectures as well as textbook material) and take the exams at the
same time as the rest of the class and pass them. On the other hand, a good attendance record can
help you if you are "on the borderline" when final class grades are calculated. This is because
attendance is taken as a sign of solid effort. Also, class participation may help the student and
other students to better understand the material.
Schedule of Topics: Listed below is a schedule for topics to be covered in class. Dates for the mid-
term exams (Exam I and Exam II) are also noted. The schedule of topics is tentative; we may slow
down when necessary or speed up when possible. For this reason, you need to attend class to know
exactly where we are. The dates for the mid-term exams are subject to change; they will be given
after we have completed the material covered in the chapters listed prior to the tentative dates of the
exams and lectures associated with those chapters.

Week Chapter

Jan 9-13 Introduction Ch. 1 & 2

& 16-20 Supply and Demand

23-27 From Consumer Choice to Market Demand Ch. 3 (omit secs. 3.4 & 3.6)

Jan 30-Feb 3 From Consumer Choice to Market Demand Ch. 4 (omit sec. 4.6)
& 6-10

13-17 EXAM I
& 20-24 Production and the Output of the Firm Ch. 6

Feb 27-Mar 3 Costs of Production Ch. 7 (omit sec. 7.6 & 7.7)

Mar 6-10 SPRING BREAK

13-17 Perfect Competition Ch. 8 & Ch. 9

& 20-24 EXAM II

Mar 27-31 Monopoly Ch. 10 (omit secs. 10.5-10.7)

Apr 3-7 Oligopoly Ch. 12

& 10-14

17-22 Factor Markets Ch. 14 (omit sec. 14.4) & Ch.

10 (secs. 10.5 & 10.6 only)