COURSE OUTLINE

Microeconomic Theory 3332

Professor S. Craig                                                                                                                            Fall, 2004

Office: 202A, M           Hours: T,Th 10:00-11:30 am                                                  Phone: 713-743-3812

or by appointmente-mail: scraig@uh.edu

Web: www.uh.edu/~scraig2/intermed

Required Text:              E. Mansfield and G. Yohe

                                       Microeconomics, Eleventh Edition

             The purpose of this course is to advance your technical understanding of economic theory concerning individual behavior, the behavior of firms, about how firms and consumers interact in the marketplace, and the role of markets in the economy. The only prerequisite for this course is “quantitative literacy.” This means either intro (Econ 2304), or that you can easily understand graphs, and simple algebra. The material in this course is, in turn, a prerequisite to many advanced topic courses (4000 level) in economics. You will be expected to demonstrate your expertise in the material through a combination of clear and precise writing, and analytical problems. Your excellent writing is why this course is a social science writing intensive class in the core curriculum. Late work will be marked off. A midterm make-up is only available if arrangements are made in advance. Class attendance is mandatory.

Course Requirements: 1 midterm, 1 final, 3 problem sets

                                         35%;    50%;             15%

I.          Introductory Overview: Supply and Demand, Chap 1

II.         Utility and Consumer Behavior

A. Preferences and Demand, Chaps 3-4

             B. Risk and Uncertainty, Chap 5

III.        Firm Costs and Production, Chaps 6-7

IV.       Perfect Competition and the Market, Chaps 8-9

V.         Imperfect Competition

             A. Monopoly, Chap 10

             B. Monopolistic Competition Chap 11

             C. Strategic Behavior and Oligopoloy, Chaps 12-13

VI.       Input Markets: Labor and Capital, Chaps 14-15

VII.      General Equilibrium and Gains from Trade, Chap 16

VIII.     Problems with the Market

             A. Asymmetric Information, Chap 17

             B. Externalities and Public Goods, Chap 18

FINAL EXAM: Thursday, Dec 9, 2-5pm.

             **** N.B. There will be no make-ups for the final exam.