EC420 Microeconomic Theory
SOUTHEAST MISSOURI STATE UNIVERSITY
Department of Economics and Finance
COURSE SYLLABUS, EC420, Microeconomic Theory
Revised in October 1989
I. Catalog Description and Credit Hours of Course
Leading theories of value and distribution with an analysis of price and output determination for firms and industries under various market conditions. (3)
II. Prerequisite(s)
MA134 College Algebra
EC215 Principles of Microeconomics
EC225 Principles of Macroeconomics
III. Purposes or Objectives of the Course
To develop an understanding of the role of the price system in serving as the controlling mechanism which coordinates the actions of individuals and firms in producing and distributing the economic goods and services among the various members of society in a free-market oriented economic system.
IV. Expectations of Students
A. Regular class attendance
B. Familiarity with assigned reading material
C. Participation in class discussion
V. Course Outline
A. Introduction
1. Nature and functions of the economic system
2. Nature and scope of economic theory
3. Units of the economic system and maximization goal
4. Market structures
B. The Theory of Commodity Price and Output Determination
1. Consumer demand
2. Demand for the product of an individual seller
3. Theory of production: relation between input changes and output changes
4. Nature and behavior of cost
C. Price and Output Determination Under Various Market Structures
1. Pure competition
2. Monopolistic competition
3. Monopoly
4. Oligopoly
D. The Theory of Resource Price Determination
1. Introduction to the theory of resource prices and income distribution
2. Theory of wage determination
3. Capital goods and investment decision
4. The theory of interest
5. Theory of rent
6. Theory of profits
E. Concluding Perspectives
1. General Equilibrium Theory
2. Welfare economics
VI. Textbook(s) and/or Other Required Materials or Equipment
Microeconomics and Behavior, Robert H. Frank, McGraw Hill, 1997.
VII. Basis of Student Evaluation
Performance on tests, quizzes, assignments, reports, or other activities required for the course including an exam given during the scheduled final examination.
