Course Outline -- AGSM 206 Microeconomic Analysis

AGSM 206 Winter Term, 1996 R. E. Marks

Lectures: Tues/Fri 10am Ext. 271
Tutes: Mon 3:30pm bobm@agsm

Note that this is similar to the subject Mngt 200, Markets and Prices, taught by Klaus Zauner this term. Both subjects will cover the same material, but this subject will assume first year differential calculus (no integral calculus) on which to build economics understanding. It is not mathematical economics.

Subject Outline:

Lecture Topic

1. Overview (good, demand, supply, income)
2. (elasticity, market)
3. Choice (preferences, utility, indifference curves)
4. The consumer (demand curves, constrained optimisation)
5. (income and substitution effects)
6. (complements and substitutes)
7. The firm (production set, scale, input substitution)
8. (cost minimisation, supply curves, comparative statics)
9. (profit maximisation)
10. Competition (perfect competition)
12. (pure long-run competition)
13. Other market structures (monopoly, monopolistic competition)
14. (competition among the few)
15. Oligopolistic pricing and game theory
16. Markets for inputs (rent, derived demand)
17. Pricing strategies
18. Normative economics (efficiency and equity)
19. (market failure, public goods)
20. Recapitulation


Reading List:

Recommended Book. Most of the reading will come from these books. They have been ordered at the Coop Bookshop. You are urged to buy one of:

Jack HIRSHLEIFER & Amihai GLAZER, Price Theory and Applications, 5th ed., Prentice-Hall, 1992.

Hal VARIAN, Intermediate Microeconomics, Norton, 3rd edition, 1993.

Supplementary Books. The first four are of the same level as Hirshleifer & Glazer. Pindyck & Rubinfeld is being used in Markets & Prices. Note that Salvatore includes many worked examples. The next three are generally at a higher level and are included for students who might wish to supplement the recommended text. The final one is non-mathematical in exposition.

Robert PINDYCK & Daniel RUBINFELD, Microeconomics, Maxwell Macmillan, 2nd. edition, 1992.

Alasdair SMITH, A Mathematical Introduction to Economics, Oxford: B. Blackwell, 1982.

Richard BILAS, Microeconomic Theory, 2nd ed, NY: McGraw-Hill, 1971.

Dominick SALVATORE, Theory and Problems of Microeconomic Theory, (Schaum's Outline Series), NY: McGraw-Hill, 1983.

Michael INTRILIGATOR, Mathematical Optimization and Economic Theory, Prentice-Hall, 1971.

Brian R. Binger & Elizabeth Hoffman, Microeconomics with Calculus, Scott, Foresman & Co., 1988.

Frank COWELL, Microeconomic Principles, Oxford: Philip Allan, 1986.

Donald McCLOSKEY, The Applied Theory of Price, NY: Macmillan, 2nd ed., 1985.


The following readings correspond to the numbered lectures (or should do). You do not need to read all of them, rather generally only one of those marked with an asterisk (#), and those marked with a dagger (**). Package readings are indicated Package.


Final exam (3-hour) 50%
Mid-term exam (80-minute, in-class) 25%
Five take-home assignments 25%

Total 100%


Last Updated 3 June 1996
Robert Marks,