The G. Raymond Chang School of Continuing Education Ryerson University SAMPLE COURSE OUTLINE CECN 104 Introductory Microeconomics Availability: Fall: Sep 9 – Dec 16 Winter: Jan 13 – Apr 25 Spring: May 5 – Jun 23 Spring/Summer: May 5 – Aug 18 Summer: June 25 – Aug 13 Exclusion: (C ) ECN 110 Course Information: This course is concerned with basic concepts of demand and

supply, the theory of the firm, and distribution of income. It includes a study of business behaviour and decision-making under various market conditions: pure competition, oligopoly, monopolistic competition, and monopoly.

Accreditation: Equivalent to COCR 950 offered by Distance Education/Open College (see calendar) (PR) Professionally Related. NOT Eligible for Liberal Studies Credit.

Course Instructor(s) Academic Coordinator: Michael Jolly 416-979-5000 ext. 6666 Required Reading: (Available in Ryerson Bookstore) McConnell, C.R., Brue, S.L., and Barbeiro, T.P. Microeconomics, Ninth

Canadian Edition, Toronto: McGraw Hill Ryerson Limited, 2002

Optional Reading: (Available in Ryerson Bookstore) Anderson, T., Walstad, W.B., and Bingham, R.C. Study Guide to

Accompany Microeconomics, Ninth Canadian Edition

Course Outline: I. Introduction 1. Economic methodology 2. Graphs and their meaning 3. The foundation of economics 4. Production possibilities curve; international trade aspects 5. The circular flow model 6. The market system 7. Specialization and efficiency – domestically and internationally 8. The five fundamental questions. REFERENCE: Chapters 1 (including Appendix), 2 and 4.

II Demand and Supply 1. The meaning of demand and supply 2. Determinants of demand and supply 3. Market equilibrium and the effect of demand and supply

changes

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4. Change in demand (supply) versus change in quantity demanded (supplied)

REFERENCE: Chapter 3

III Elasticity & Further Topics in the Theory of Consumer Demand 1. Price elasticity of demand 2. Price elasticity of supply 3. Cross elasticity of demand 4. Income elasticity of demand 5. Applications of supply and demand analysis

- price ceilings and shortages - price floors and surpluses; minimum wage,

agricultural price supports - the foreign exchange market - tax incidence

6. Farm policy 7. Consumer choice REFERENCE: Chapters 5 (pp. 111-113), 6, 7 (pp 156-159, 173-178), 15 (p391-392), and 20 (pp 516-522)

IV The Costs of Production 1. Economic costs

- explicit and implicit costs - normal profit

2. Economic profit versus accounting profit 3. The law of diminishing returns 4. Short-run production costs 5. Long-run production costs 6. Economies and diseconomies of scale REFERENCE: Chapter 8

V Pure Competition

1. Characteristics of the four basic market models 2. Concept and occurrence 3. Demand and revenue 4. Profit maximization – short-run; long-run 5. Evaluation of competitive pricing 6. Spillover costs and benefits REFERENCE: Chapters 9, 4 (pp 87-89), and 18 (pp 461-466)

VI Pure Monopoly 1. Characteristics 2. Barriers to entry 3. Monopoly price and marginal revenue 4. Profit maximization – short-run; long-run 5. Economic effects of monopoly 6. Regulated monopoly REFERENCE: Chapter 10

VII Monopolistic Competition 1. Characteristics

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2. Demand and profit maximization 3. “Wastes” of monopolistic competition 4. Non-price competition REFERENCE: Chapter 11 (pp 274-282)

VIII Oligopoly 1. Characteristics 2. Underlying causes 3. Oligopoly behaviour: a game theory overview 4. Three oligopoly models: kinked demand curve, collusive, and

price leadership 5. Oligopoly and advertising 6. Oligopoly and economic efficiency REFERENCE: Chapter 11 (pp. 282-299)

IX Government Policy Toward Monopoly

1. Industrial concentration 2. Anti-combines legislation 3. Social regulation 4. Industrial policy REFERENCE: Chapter 13

X The Pricing of Economic Resources 1. Significance and complexities of resource pricing

2. Marginal productivity theory of resource demand 3. Determinants of resource demand 4. The general level of wages 5. Wages in particular labour markets 6. The minimum wage controversy REFERENCE: Chapters 14 and 15 (pp. 375-385)

Topics IX and/or X may be omitted at the discretion of the instructor.

Assignments Grades for the course will normally be based on two tests and a Final and Examinations: Exam with the following weighting: Test # 1 25% Test #2 25%

Final Exam: 50%

The two tests will each last one hour and the final exam will last two hours. Each of them will be held in the regular class room in regular class time. Students failing to attempt a test or the exam will be given a zero mark for the piece of work in question unless they produce a written medical excuse, provided by an MD, during the week in which they return to class. In that case, if a test was missed, the weighting of the final exam will be increased to 75%. Students are advised to answer tests in ballpoint pen. Tests answered in pencil will be accepted and graded but in that case no requests for a reassessment of the test will be entertained. At the instructor’s discretion more than two tests may be assigned.