Economics 271: Intermediate Microeconomics Fall 2021

Professor: Dr. KimMarie McGoldrick E-mail: [email protected]

Student drop-in hours: MW 1:30-2:30pm, or by appointment Office: RSB Q378

Course Description: Economics 271 provides deeper theoretical and mathematical exposition of many of the topics
covered in Economics 101. Generally, the course is a mathematically rigorous presentation of the theoretical
foundations for the efficiency of market outcomes. This conclusion requires an in-depth understanding of the models
of individual and firm behavior as they pertain to the determination of market prices and quantities. We develop this
understanding in four parts. We begin with a basic review of supply and demand. This is followed by an examination
of consumer behavior and market demand, constructing a model of consumer choice and using that model to derive
individual and market demand. We then shift our attention to the other side of the market and analyze the behavior
of firms and market supply. We study how each firm decides the input combination to produce its output and the
quantity of output to bring to market. From this, we derive supply curves. Finally, we bring both consumer and firm
sides to determine market price and quantity in various market structures. Topic coverage in many cases will rely on
basic algebra and calculus skills, in addition to standard graphical presentations. Calculus is a prerequisite to this
course and we will use the first two weeks of class re-invigorating your calculus and algebraic skills as we review the
basics of supply, demand and the market. Micro theory is a pre-requisite for all but one of the department's 300-level
courses and is required for the major and minor.

Course Goals: The course is designed to provide a rigorous introduction to the tools that underly nearly all economic
analysis, including most of the upper level applied courses you may take. Many students find this course to be one of
the most difficult and time-consuming courses of the major. This is a problem-solving course, and I have designed the
course to allow you to practice your problem-solving skills in a low-stakes environment, the problem-solving sessions.
The questions on the exams will be in a style similar to those found on the problem-solving session assignments. In
addition to mastering course content, course goals include developing self-directed learning and collaborative skills.
Learning skills will be enhanced through your effective use of daily outlines, connecting them to class notes and using
them as a study guide. Collaborative skills will be enhanced through group work during the problem-solving sessions.

Recommended Text: Microeconomics: Theory and Applications with Calculus (3rd Edition) by Jeffery M. Perloff. This
text is recommended and used copies are available through various online sources. Two copies of this text have also
been put on (2 hour) reserve in the library. PDF copies of all chapters associated with the material covered in this
class have been posted to Blackboard. The class scheduling information provided at the end of this syllabus lists
material we will cover and corresponding text pages for your convenience. If you struggle to learn material without a
supporting text then it is highly recommended that you secure a personal copy.

Daily outlines: In lieu of a required textbook, I will be providing supporting materials including daily outlines available
to pick up as you walk into class. An outline can serve to guide to enhance your notetaking during class, identifying
sections of material and key points. Outlines are also great tools for studying. If you have the outline in front of you,
could you fill in all the details and supporting mathematical manipulations and intuition? If yes then it is likely you
will perform well on the exam. I am happy to discuss with you how the outlines might be used as a study tool.

Blackboard: An additional resource available to students is the class Blackboard site, which can be accessed at
http://www.richmond.edu. Through this site you have 24-hour access to a great deal of information on the class.
Items available through the site include but are not limited to the course syllabus, PDFs of the recommended
textbook chapters, supporting handouts, and problem-solving assignments and answer keys.

Drop-in hours: Above I have identified hours that I have blocked off to be in my office so that you might have time to
ask questions or just say hello. If these times do not fit your schedule and you would like to drop by please send me
an email and we will negotiate a time to meet. I encourage you to stop by early in the semester and as often as
needed. Please note that I anticipate being available at other times (especially on Thursdays before Friday exams)
and if my office door is open I will make time to talk with you.
Grading Policy: The course grade will be based on 7 problem-solving session assignments and 6 exams. There is a
total of 798 points possible throughout the semester, distributed as follows: 7 problem-solving session assignments
(14 points each; 98 points), 5 regular class period exams (100 each; 500 points), and a final exam (200 points). Your
final score in the class is calculated as the percentage of the total possible points that you earn and, in general, final
letter grades are assigned following a standard grading scale (e.g. 90-100 A, 80-89 B, etc. and I do award +/- grades).

Exams: Each exam will each consist of short essay/problem questions designed to test your intuitive understanding
of the material and longer problems which emphasize the application of advanced mathematical techniques. The
regular class period exams are not explicitly cumulative, but you will need to use concepts from the earlier parts of
the course in order to understand the later topics. The tests may also include sub-questions that relate to earlier
parts of the course if they are relevant. The final exam will be cumulative across all chapters.
Cumulative final exam: 9:00 class: Mon Dec 6, 9am-12pm 10:30 class: Fri Dec 10, 9am-12pm
12:00 class: Thurs Dec 9, 9am-12pm

How to Study, BONUS POINTS: You may discover valuable study skills and techniques by watching the video series
available at www.samford.edu/how-to-study. These videos include Understanding How People Learn, Principles for
Optimal Learning, and What to do (and NOT do) if you Perform Poorly on an Exam. You will earn up to 15 bonus
points in total for watching 5 videos and completing a reflective exercise after each. (Note: since it is expected that
most students will not perform poorly on an exam no bonus points can be earned for watching the video that
addresses this topic, although you are encouraged to watch it nonetheless.) Details can be found on Blackboard
under the How to Study tab. There is no deadline for completing these exercises, but the earlier you do so the more
the information provided can support your success in this course.

Honor Code: As is true with all classes at the University of Richmond, students are expected to follow the honor code
and to conduct themselves with honesty and integrity. Using materials from prior semesters is a violation of the
honor code. I reserve the right to assign a grade of zero for any course work for which I have evidence of cheating. In
addition, I reserve the right to engage the Honor Council to have them determine if further sanctions are appropriate.

Attendance: Students are expected to attend all scheduled classes, including problem-solving sessions. Students are
expected to be on time for class and stay for the entire period. Students may not leave early unless permission is
granted before class starts. No tape recording is allowed for any purpose, because part of good learning includes
taking one's own class notes. Any student with greater than two unexcused absences will have a full point deducted
for each unexcused absence above the limit from their final course average. Excused absences include athletic
events, medical emergencies, documented illnesses, etc.

Electronic Devices: All electronic devices should be turned off and put away in your backpack during class and exams
(laptops, cell phones, etc.) unless your DAN permits its use. On exams you may use an electronic calculator that will
be provided for you. Personal programmable calculators are not permitted.

Disability Support Services:

If you believe you have a disability requiring an accommodation, please follow the procedures listed on the
University of Richmond Disability Services website to begin the accommodations process as soon as possible. If you
already have a University of Richmond Disability Accommodation Notice (DAN), please make an appointment with
me as soon as possible so that I am aware of your accommodations. No student will receive accommodations of any
kind without a DAN. I will utilize the Academic Testing Center for students with extended time accommodations.
Please note that the DAN requires students to give a minimum of seven (7) days’ prior notice to faculty, and tests
must be scheduled at the testing center at least three business days in advance. It is the student’s responsibility to
schedule examinations to be held on the day of the scheduled in-class exam.

Problem-solving session assignments: Developing good problem-solving skills is critical to successful learning in this
course. Because the primary goal of working through problems is to prepare you for the exams it is important that
you make individual attempts at problems to identify strengths and weaknesses in your comprehension, but then
also have an opportunity to develop skills where you might be deficient. The 3 components to the problem-solving
sessions described below are designed to enhance your skills in a relatively low-stakes environment so that you can
rectify comprehension gaps before you take the higher-stakes examinations. Please note that you must complete the
problems and the pre-problem-solving session confidence rating described below to attend the problem-solving
session. Failure to complete either before coming to class means that you will not be allowed to participate in the
group problem-solving session. No exceptions will be granted. Finally, problem sets tend to be long and challenging,
so in general, starting to work on them the night before it is due will not be the most ideal strategy. Problems will be
posted to Blackboard before class on the day we begin a chapter. Complete solution sets will be posted to
Blackboard by 5pm after the problem sets are due, and it is your responsibility to read these solutions and make
certain you understand them.
Individually completed problems (8 points): One copy of your completed individual work must be turned in at the
start of the problem-solving class session and serves as one of your 2 “tickets” to participate; this will not be returned
to you so I recommend you make a separate copy to use during the session and for your personal records. You can
earn up to 7 points on this component of your problem-solving session grade. Effort is rewarded: you do not need to
get the questions correct to earn all points. However, you must make much more than a superficial attempt at each
question. It is important that you do not give up too early on trying to answer any question component as doing so is
likely to lead to point reductions. Each blank or partially completed problem component will result in a ½ point
reduction in this grade. For example, if question 1 has 5 parts and only 3 are complete then 1 point will be reduced
from the potential 8 points you can earn. It is a violation of the honor code to consult with any other student or use
any materials that are not provided as a part of this class as you work on this individual component.
Pre-problem-solving session confidence rating (1/2 point): One-half point will be allocated for completing the
confidence evaluation page of the assignment. You are required to complete the individual evaluation as your second
“ticket” to participate in the problem-solving session. This exercise is important because it helps you identify your
level of material comprehension in advance of studying for an exam. Your level of confidence should align with the
degree to which your answer is correct. The extent to which they do not match up (confident and incorrect OR not
confident but correct) is a signal to you that you should seek help on the material.
Group completed problems (5 points): Students will then be required to work collaboratively in groups of no less
than 3, but no more than 5 during the problem-solving sessions to generate a final version of their homework.
(Group composition is allowed to change during the semester.) During the session you will get into groups to
compare/contrast your answers and resolve discrepancies. You are encouraged to actively participate, asking
questions and seeking advice on how to tackle problems. This class session provides you with the opportunity to
enhance problem-solving skills. Your group should generate this final version by using one student’s individual
homework and marking it up with corrections. You are required to make all marks in a red pen (that will be
provided) so that I may determine your groups contribution. One completed assignment will be turned in for each
group and all group members will be given the same group grade. Grades will be determined on effort, demonstrated
by enhancing one group members individually completed assignment. You are encouraged to make a copy (perhaps
taking pictures) before turning this component in so that you can compare your work with the posted answer key. I
will do my best to have all graded problems sets available for pick up outside my office by noon on the following day.
Post-problem-solving session confidence rating and questionnaire (1/2 point): One-half point will be allocated for
completing the post problem-solving confidence evaluation page of the assignment. You are required to complete
this evaluation at the end of the problem-solving session and it is due before you leave class. This exercise is
important because it can help you re-evaluate your level of material comprehension in advance of studying for an
exam. If you were confident in your answer after completing the problems on your own yet your answers do not
align with members of your group, you may wish think more carefully about what you do and do not understand and
seek help on the material. Did your group work help enhance your understanding of solutions to the problems? If
yes, consider creating a study group in preparation for exams.

Missed Work: Late problem-solving session assignment components will not be accepted; no exceptions. If you miss
an exam you may provide written, credible evidence from a professional explaining why you did not take the exam. If
you miss an exam with credible evidence explaining your absence, you will be allowed to schedule a make-up within
2 days of your absence. Absent written and telephone explanations, you will receive a zero for the exam.
To be successful in this course you should expect to devote 13-15 hours each week outside of class by studying the
material and preparing assignments.

Date What we will be covering in class

Mon 8/23 Overview of course
Wed 8/25 Supply, Demand, Chapter 2: p 9-20
Fri 8/27 Equilibrium, Shocks, Chapter 2: p 20-28
Mon 8/30 Elasticity, Chapter 2: p. 28-38
Wed 9/1 Taxes, Disequilibrium, Chapter 2: p. 39-51
Fri 9/3 Problem-solving session (CH2)
Mon 9/6 Consumer’s Constrained Choice, Chapter 3: p. 58-69
Wed 9/8 MRS, Budget Constraint, Chapter 3: p. 70-78
Fri 9/10 Constrained Optimization, Chapter 3: p. 79-92
Mon 9/13 Constrained Optimization cont.
Wed 9/15 Problem-solving session (CH3)
Fri 9/17 Exam 1, Chapter 2 & 3 material
Mon 9/20 Deriving Demand, Change in Income, Chapter 4: p. 100-114
Wed 9/22 Demand and Increases in a Goods Price, Chapter 4: p. 114-124
Fri 9/24 Demand and Decreases in a Goods Price, Chapter 4: p. 114-124 cont
Mon 9/27 Deriving Labor Supply Curves, Chapter 5: p. 157-167
Wed 9/29 Problem-solving session (CH4 & CH5)
Fri 10/1 Exam 2, Chapter 4 & 5 material
Mon 10/4 SR Production Functions, Chapter 6: p.173-184
Wed 10/6 LR Production Functions; Returns to Scale, Chapter 6: p. 185-197
Fri 10/8 Measuring Costs; SR Costs, Chapter 7: p. 206-219
Mon 10/11 FALL BREAK
Wed 10/13 LR Costs, Chapter 7: p. 219-232
Fri 10/15 SR and LR Cost Relationship., Chapter 7: p. 233-238
Mon 10/18 Problem-solving session (CH6 & CH7)
Wed 10/20 Perfect Comp Char & SR Profit Max, Chapter 8: p. 246-264 (not on exam 3)
Fri 10/22 Exam 3, Chapter 6 & 7 material
Mon 10/25 Perfect Competition & LR Market Char., Chapter 8: p. 265-282
Wed 10/27 PC Market & CS, PS, DWL, Chapter 9: p. 288-301
Fri 10/29 PC Market and Wedge Policies, Chapter 9: p. 301-310
Mon 11/1 PC Market and Trade., Chapter 9: p 310-319
Wed 11/3 Problem-solving session (CH8 & CH9)
Fri 11/5 Exam 4, Chapter 8 & 9 material
Mon 11/8 Monopoly, Chapter 11: p. 363-376
Wed 11/10 Monopoly Causes and Govt Actions, Chapter 11: p. 382-392
Fri 11/12 Monopsony, Chapter 11: p. 396-400
Mon 11/15 Price Discrimination, Chapter 12: p.406-417
Wed 11/17 Problem-solving session (CH11 & CH12)
Fri 11/19 Exam 5, Chapter 11 & 12 material
Mon 11/22 Class cancelled: Dr M attending an economics conference
11/23-11/28 Thanksgiving break, no class
Mon 11/29 Cournot & Stackelberg Oligopoly Models, Chapter 14: p. 481-510
Wed 12/1 Bertrand Oligopoly Model, Monopolistic Competition, Chapter 14: p. 511-522
Fri 12/3 Problem-solving session (CH14)
Final Exam, cumulative of all material covered this semester