Syllabus For Microeconomics, Kaist Bep 406

BEP4 06

Fall, 2009

Course Profile

Prof. Myung-Hoon Lee

Microe conomic s

[email protected](소문자엘엠에이치)

Microe conomic s

[email protected](소문자엘엠에이치)

016-811-1514 Prof. Myung-Hoon Lee 016-811-1514

Economics is a study of economic activities of people, i.e., households, businesses, and the government. The objective of studying economics is to secure the "right" decision-making by choosing the right quantities of such variables as production/consumption of commodities and offer/use of resources. The definition of "right" varies on whose viewpoint we look at it. From the viewpoint of the whole nation, the quantities that bring about the maximum level of social welfare are right. When this viewpoint is taken, economics is called macroeconomics. From the viewpoint of each individual household or business, the quantities that bring about the maximum level of utility or profit are right. When this viewpoint is taken, economics is called microeconomics. Both microeconomics and macroeconomics look at the same stuff, i.e., economic activities of people. The former looks at them through the microscopes, and the latter through the telescopes. In microeconomics, what makes the economist's job intriguing is the fact that the strategy of individual economic subjects(household or business) to maximize his utility or her profit is not independent of, but is dependent on, other individual subjects' behaviors. We had better understand, therefore, the market where many economic subjects' decision-makings meet and interact with each other.

In sum, then, in this course of microeconomics we focus on the process in which individual economic subjects maximize their material greeds in the boundary of various fashions of markets. The process may be itemized as follows: (1) How a household maximizes his utility when commodity prices are given. (2) How the commodity market demand behaves. Course (3) How a business maximizes her profit when commodity prices are given. Objectiv (4) How the commodity market supply behaves. (5) How the price of commodity is determined in the commodity market. es (6) How a household maximizes his utility when resource prices are given. (7) How the resource market supply behaves. (8) How a business maximizes her profit when resource prices are given. (9) How the resource market demand behaves. (10) How the price of resource is determined in the resource market. (11) Market Success? What can the Government do when the market fails?

Theory and Application of INTERMEDIATE MICROECONOMICS

Textbook written by W. Nicholson and C. Snyder (10th edition)

Referenc MICROECONOMICS written by D. Besanko and R. Braeutigam (3rd edition) e My Book (AutoEconoGraphy) Each student is encouraged to electronically "publish" a book of her/his own by the semester's end. The manuscript, written in English, is required to closely follow the organization of the course lectures. That is, you may consider it as an annotated and/or paraphrased lecture note. The student is to submit (1) the manuscript's computer file to the professor and (2) a Term printed copy, non-returnable, to the teaching assistant or the department Project office. The deadline of submission is the end of the week right after the final exam. A hard-cover printed copy is encouraged but not required. The manuscript has to start with a brief introduction of the author, a preface, and a list of contents. Acknowledgements and/or dedications are more than welcome to be stated. One may like to include the author's photos, snaps or formal. Midterm Exam Final Exam Grading My Book (AutoEconoGraphy) Attendance C

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Week

Period

Contents

Textbook

1

09/01 ~ 09/03

Review of Microeconomics

2

09/08 ~ 09/10

Economic Models

Chapter 1

3

09/15 ~ 09/17

Utility and Choice

Chapter 2

4

09/22 ~ 09/24

Utility Maximization

Chapter 3

5

09/29 ~ 10/01

Behavior of Market Demand

Chapter 4

6

10/06 ~ 10/08

Production

Chapter 7

7

10/13 ~ 10/15

Costs

Chapter 8

8

10/20 ~ 10/22

9

10/27 ~ 10/29

Profit Maximization

Chapter 9

10

11/03 ~ 11/05

Behavior of Market Supply

Chapter 9

11

11/10 ~ 11/12

Determination of Commodity Price (When many businesses exist)

Chapter 10

12

11/17 ~ 11/19

13

11/24 ~ 11/26

Determination of Resource Price (Resource=Labor)

Chapter 15

14

12/01 ~ 12/03

Determination of Resource Price (Resource=Capital)

Chapter 16

Mid-Term Test

Determination of Commodity Price Chapter 13 (When one or a few businesses exist) Chapter 14

Referen ce

15

12/08 ~ 12/10

Market Success or Market Failure (Externalities and Public Goods)

16

12/15 ~ 12/17

Final Test

Chapter 18