ECON 80A 2
Microeconomic Theory
Fall 2016
Brandeis University
Instructor
Krastina Dzhambova
Lecture Time
Office Hours
M W 2:00 – 3:20 PM
W 6:30 – 8:30 PM
Recitation
Recitation Time
Teaching Assistant
Roza’s office hours
M 6:30-8:20 PM
Roza Muluken Azene
PhD Candidate (Economics, Boston College)
email:
[email protected]
phone: 857-234-4179
office: IBS 1G
LOC: IBS L55
or by arrangement (please shoot me an email)
Golding Judaica Cntr 110
[email protected]
Fridays 3:30pm-5pm at the IBS study area
Course Overview
This class introduces microeconomic theory of consumer and producer behavior. It
describes competitive markets as well as markets characterized by market power. In the
second part of the class we focus on possibilities for market failure (imperfections) and its
consequences for the welfare of agents. We will also discuss important application of the
covered microeconomic theories to taxation, public policy and regulations.
Topics to be covered are:

Consumer Theory

Consumer preferences, budget constraints and consumer choice

Theory of the Firm

How firms combine labor, capital and materials to produce goods and services; how
the firm cost depends on the rate of production and what is the cost minimizing
combination of inputs

Profit maximization: how much to produce? How to derive the firm supply curve and
the aggregate industry supply curve in the context of a perfectly competitive market

Market Structure and Competitive Strategy

Market power: how it arises; how it affects the decisions and welfare of agents and
how it can be curbed by the government

How to use a game theoretic approach to describe markets with a limited number of
firms.

Markets with Asymmetric Information

Externalities and Public Information
Prerequisites
ECON 10a. Students must earn C- or higher in Math 10a, or otherwise satisfy the calculus
requirement to enroll in this course.
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Course Textbook
Microeconomics, by Robert Pindyck and Daniel Rubinfeld, 8th edition, Publisher:
Pearson
Assigned readings come form this textbook as per the detailed course outline below.
The textbook is available from the university bookstore.
Microeconomics, 8/E MyEconLab, Fall 2016
We will use MyEconLab for homework assignments. Access for MyEconLab can be purchased
either as a package with the textbook or separately.
The ISBN for the book packaged with the lab is 9780132951500.
The ISBN for the access code by itself is 9780132914659.
***The 7th edition of the book is also fine to use. However, if you decide to use the 7th edition,
please make sure to purchase an access code to the 8th edition of MyEconLab.
Homework Assignments
I will assign (almost) weekly homework assignments. They are part of your grade.
You are allowed to work on the assignments together, but everyone should submit an
individual problem set in order to receive points. There will be a total of 9 assignments for
the whole semester.
We will use Microeconomics, 8/E MyEconLab for the homework assignment. I will make
the homework assignments available on MyEconLab (normally) on Wednesdays and you
will have a week to complete them.
Exams
There will be 2 in class midterm exams and a final exam during the exam period.
The mid term exams are not cumulative.
The final is cumulative.
Exam Policy
Calculators
The use of a calculator is allowed during exams.
Absence from an
Absence from an exam is admissible only for a serious illness or a
exam
personal / family emergency (please be prepared to show
documentation / evidence). A student who is unable to take the final
exam for a legitimate reason must obtain advance authorization from
the Office of Undergraduate Academic Affairs.
There will be no make up exams during the semester. If either
midterm exam is missed for a legitimate reason, I will transfer the
missed exam weight towards the final exam.
Special
Accommodations
If you are a student with a documented disability on record at
Brandeis University and wish to have a reasonable accommodation
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made for you in this class, please contact me immediately.
Academic
Honesty
Attendance
Homework
2 Midterms
Final Exam
You are expected to be familiar with and to follow the University’s
policies on academic integrity. For details please refer to the Rights
and Responsibilities webpage.
(http://www.brandeis.edu/studentlife/srcs/rr/)
How will your grade be formed?
Attendance is mandatory;
You are allowed two absences without a reason and an additional two
for a valid reason such as a medical or family emergency.
Missing more sessions will affect your grade adversely.
15 % of your grade
Each 25 % of your grade
35 % of your grade
Important Dates
Aug. 25
First day of class
Aug 29
First Lecture
Sept 5
No Class
Sept 8
Brandeis Day: Monday Schedule
Oct 3
No Class
Oct 10
First in class midterm
Oct 12
No Class
Oct 17
No Class
Oct 25
Brandeis Day: Monday Schedule
Nov 9
Second in class midterm
Nov 23
No Class
Dec 7
Last Day of Class and Last Lecture
Dec 8-9
Study Days
Dec 12-19
Final Exam Period
Some Suggestions

Attend the lectures and recitation sessions (lecture attendance is mandatory!)

I strongly encourage you to attend the recitation sessions and use your TA as a
resource.

Ask questions in class / office hours / recitation: there is no such thing as a silly
question

Participate in class and do not worry about saying something wrong: this is what
classroom discussions are for- to flush out ideas!

If you can, quickly read through the upcoming chapter of the book.

It is a good idea to read the Economist (and/or) the Wall Street Journal regularly.
Staying abreast economic news and forming an opinion through the lens of what you have
studied in your economics classes will be beneficial not only for this class but overall for
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your studies. Please keep in mind that the Brandeis library gives you free access to these
publications at http://guides.library.brandeis.edu/business
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Week
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
Week 10
Lecture
Special
Date
Dates
29-Aug
31-Aug
5-Sep No Class
7-Sep
Brandeis
Day:
Monday
8-Sep Schedule
12-Sep
14-Sep
19-Sep
21-Sep
26-Sep
28-Sep
3-Oct No Class
5-Oct
10-Oct
12-Oct No class
17-Oct No Class
Weekly Topic(s)
Readings
Chapter 1
Preliminaries; The Basics of Demand and Supply
Chapter 2
Consumer Behavior: consumer preferences and indifference curves,
MRS, budget constraint and consumer choice
Chapter 3
Individual and Market Demand
Chapter 4
Individual and Market Demand
Chapter 4
Production Theory
Chapter 6
Production Theory
First in class midterm
Chapter 6
Assignment
Assignment
1 available
Assignment
2 available
Assignment
3 available
Assignment
4 available
Assignment
5 available
Assignment
6 available
19-Oct
24-Oct No Class
Brandeis
Day:
Monday
25-Oct Schedule
26-Oct
31-Oct
Review of Midterm
The Cost of Production; Profit Maximization
Chapter 7 and 8
2-Nov
Monopoly
Chapter 10
Assignment
7 available
Assignment
6 and 7 due;
8 avail.
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Week 11
Week 12
Week 13
Week 14
Week 15
7-Nov
9-Nov
14-Nov
Second in class midterm
16-Nov
Pricing with Market Power and Monopolistic Competition
Chapter 11 and 12
21-Nov
23-Nov No Class
28-Nov
30-Nov
Markets with a Limited Number of Firms and Game Theory
Chapter 13
Markets with Asymmetric Information
Chapter 17
5-Dec
7-Dec
Externalities and Public Goods
Review
Chapter 18
Assignment
9 available
Assignment
10 available
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