ECO 3310 Summer 2006

Intermediate Microeconomic Theory

M-R 4:00-5:50 p.m.

Instructor: Shilpi Bihari Office Hours: by appointment

Office: Green 2.822 (Email me to set appointment)
Office Phone: (972) 883-4913
e-mail: sxb014000@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.

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.

Textbooks: Pindyck and Rubinfeld, 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 a paper, weighted as follows:
Homework: 10%
Exam 1: 25%
Exam 2: 30%
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+ 72-76 C+ 0-52 F

92-96 A 68-72 C
88-92 A- 64-68 C-
84-88 B+ 60-64 D+
80-84 B 56-60 D
76-80 B- 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.

Final Exam: The FINAL EXAM is scheduled for Monday July 31. All students are required to
take the final at that time. No exceptions will be granted.

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. Homework might consist of either presentations to be made in the class or it will
consist of problems in the book.

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: 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. This schedule 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.

Week Chapter

1 Introduction Ch. 1 & 2 (omit sec. 2.6)

Supply and Demand

2-3 From Consumer Choice to Market Demand Ch. 3 (omit secs. 3.4 & 3.6)

Individual and Market Demand Ch. 4 (omit secs. 4.5 & 4.6)

10th July Exam I

4 Production and the Output of the Firm Ch. 6

Costs of Production Ch. 7 (omit sec. 7.6 & 7.7)

5 Perfect Competition Ch. 8 & Ch. 9

20th July Exam II

6 Monopoly Ch. 10 (omit secs. 10.5-10.7)

Oligopoly Ch. 12

31st July Final Exam