Description:

Upon successful completion of this course, the student should be able to use economic terminology and principles to explain and discuss basic microeconomic concepts, including extended analysis of product supply and demand and theory of the firm and product and resource market structures. Students enrolling in this course should have successfully completed one year of high school algebra or the equivalent. (Micro) 3 hrs./wk.

Supplies: Refer to the instructor's course syllabus for details about any supplies that may be required.

Prerequisites: NONE

Textbook(s): For information see - http://bookstore.jccc.net

Course Fees: NONE

Course Objectives:

Upon successful completion of this course the student should be able to:

1. Compose and interpret graphs and charts displaying economic information.
2. Describe the role of demand and supply in microeconomics.
3. Discuss the theory of consumer behavior and its effect on the way a consumer thinks and acts.
4. Explain the production and cost functions as they relate to consumers and businesses.
5. Define the four market structures in the product market. These structures will include pure competition, pure monopoly, monopolistic competition and oligopoly.
6. Analyze graphically and numerically each of the four market structures to determine its profit maximizing output and price.
7. Explain the market structure in the factor market and determine the price and quantity for each factor.
8. Discuss international trade and its effect upon the economies of the world.

Content Outline & Competencies:

I. Foundations of Microeconomics - Supply and Demand
   A. Demand principles
      1. Define the law of demand.
      2. Given a demand schedule, derive a demand curve.
      3. Differentiate between demand and quantity demanded.
      4. Identify the determinants of demand.
      5. Differentiate between the entire demand curve and a point on the
curve.
      6. Demonstrate demand principles through examples.
   B. Supply principles
      1. Define the law of supply.
      2. Given a supply schedule, derive a supply curve.
      3. Differentiate between supply and quantity supplied.
      4. Identify the determinants of supply.
      5. Differentiate between the entire supply curve and a point on the
curve.
      6. Demonstrate supply principles through examples. 
   C. Equilibrium
      1. Define equilibrium.
      2. Given demand and supply tables, derive equilibrium.
      3. Create a graph illustrating equilibrium.
      4. Determine the surplus or shortage based upon the demand and
supply graphs.
      5. Predict the market effects of either a surplus or a shortage.
   D. Elasticity
      1. Define elasticity and list the two types.
      2. Derive the elasticity coefficient stated as a formula.
      3. Find the value of an elasticity coefficient.
      4. Describe how price changes total revenue.
      5. Given price and total revenue, determine elasticity of demand and
supply.
      6. Explain the effect of time upon elasticity, including the market
period, the short run and the long run.
      7. Describe cross and income elasticity of demand and cite examples
of each.
      8. Define the key terms associated with elasticity including price
ceilings and price floors.
      9. Apply the principles of elasticity to government intervention to
control prices.

II. Consumer Behavior
   A. The law of demand
      1. Define income and substitution effects.
      2. Define the law of diminishing marginal utility.
         a. Define the term utility.
         b. Differentiate between total and marginal utility.
         c. Express utility graphically.
   B. The theory of consumer behavior
      1. Describe utility maximization and its applications.
      2. Solve numeric problems relating to utility maximization.
      3. List several examples of utility maximization.

III. Production and Cost
   A. Production function and marginal productivity theory
      1. Explain the relationship between inputs and outputs.
      2. Describe the concept of marginal productivity.
      3. Differentiate between marginal and total product.
      4. Define the law of diminishing marginal productivity.
      5. Solve numeric problems relating to marginal productivity.
   B. Cost function
      1. Differentiate between short-run costs and long-run costs.
      2. Define different types of short-run costs.
      3. Examine the relationship between the various short-run costs.
      4. Solve numeric problems relating to short-run costs.
      5. Develop long-run costs from short-run costs.
      6. Generate long-run curves from short-run curves.

IV. Market Structures in the Product Market
   A. Profit maximization of a firm under perfect competition
      1. State the characteristics of a perfectly competitive firm.
      2. Define revenue, costs and profit.
      3. Determine the profit maximizing output and price using total
revenue and total cost.
      4. Determine the profit maximizing output and price using marginal
revenue and marginal cost.      
      5. Develop the curves from the relevant revenue and cost.
      6. Solve numeric problems relating to profit maximization for a
perfectly competitive firm.
      7. State the positive and negative traits of a perfectly competitive
product market.
   B. Profit maximization of a firm under the monopoly market model
      1. State the characteristics of a monopoly.
      2. Determine the profit maximizing output and price using total
revenue and cost.
      3. Determine the profit maximizing  output and price using the
marginal revenue and cost.
      4. Develop the curves from the relevant revenue and cost.
      5. Solve numeric problems relating to profit maximization for a
monopoly.
      6. State the positive and negative traits of a monopoly.
   C. Profit maximization of a firm under the monopolistic competition
market model
      1. State the characteristics of a monopolistically competitive
firm.
      2. Relate how this model was derived by combining the perfectly
competitive model and the monopoly model.
      3. Determine the profit maximizing output and price using marginal
revenue and cost.
      4. Develop the curves from the relevant revenue and costs.
      5. Solve numeric problems relating to profit maximization for a
monopolistically competitive firm.
      6. State the positive and negative traits of a monopolistically
competitive firm.
      7. Define the wastes of monopolistic competition.
      8. Examine the impact of advertising upon this model.
   D. Profit maximization of a firm under the oligopoly market model.
      1. State the characteristics of an oligopolistic firm.
      2. Determine the profit maximizing output and price using marginal
revenue and cost.
      3. Develop the curves from the relevant revenue and costs.
      4. Apply game theory to the behavior of a person under the oligopoly
market model.
      5. Examine the four oligopoly models:  the kinked demand curve,
collusive pricing, price leadership and cost plus pricing.
      6. Solve numeric problems relating to profit maximization for an
oligopolistic firm.
      7. State the positive and negative traits of an oligopolistic firm.

V. Market Structures in the Factor Market
   A. State the various factor markets.
   B. Develop the marginal productivity theory of resource demand.
   C. Relate the marginal productivity theory to the resource labor.
      1. Derive the demand for the supply of labor in perfect
competition.
      2. Determine the wage rate and the employment level under perfect
competition.
      3. Derive the marginal resource cost and the supply curve of labor
under imperfect competition (monopsony).
      4. Determine the wage rate and the employment level under monopsony
and bilateral monopoly.
   D. Solve numeric problems relating to the optimum combination of
resources.
      1. Apply the least-cost rule.
      2. Apply the profit-maximizing rule.

VI. International Trade
   A. Describe the economic basis for trade.
   B. Develop the concepts of specialization and comparative advantage.
   C. Discuss the cases for and against protectionism.
   D. Outline various international trade policies.

Methods of Evaluation of Competencies:

Evaluation of student mastery of course competencies will be accomplished using the following methods:

     Four tests           50 - 80% of grade
     Final examination    10 - 25% of grade
     Other assignments    10 - 25% of grade

Caveats: NONE

Disabilities:

If you are a student with a disability, and if you will be requesting accommodations, it is your responsibility to contact Access Services. Access Services will recommend any appropriate accommodations to your professor and his/her director. The professor and director will identify for you which accommodations will be arranged.

JCCC provides a range of services to allow persons with disabilities to participate in educational programs and activities. If you desire support services, contact the office of Access Services for Students With Disabilities (913) 469-8500, ext. 3521 or TDD (913) 469-3885. The Access Services office is located in the Success Center on the second floor of the Student Center.