Spring, 2004 7:00 9:40 p.m.

. Tuesday Business Building, Rm 2107 ECONOMICS 604: Advanced Microeconomic Theory Instructor: Douglas Davis Office: Business Building, Room 5140 Telephone: 828-7140 (Office) (804) 741-7622 EMAIL dddavis@vcu.edu (1) 12:00 - 1:00 Monday and Wednesday (2) By Appointment

Office Hours:

Required Text: Nicholson, Microeconomics Theory: Basic Principles and Extensions, Eighth Edition, 2002. Course Objectives: Economics distinguishes itself from the other social sciences in that analysis follows largely from the single paradigm of neoclassical price theory. An understanding of the foundations, and implications of this paradigm stand as essential, perhaps defining components of any professional economists skill-set. In this course we explore price theory, with a particular focus on the development of testable implications from careful theoretical analysis. Course Prerequisites: Intermediate microeconomics and differential calculus; Econ 614 or equivalent highly recommended. Course Requirements: 1. Exams. There will two exams, a mid-term examination, and a final. The final examination will be: Tuesday May 11. Exams will consist mostly of problems, with perhaps a few essay questions. 2. Individual Homework. Throughout the course of the semester, I will collect and grade a series of individual homework assignments. Most weeks I will hand out an assignment at the beginning of the lecture. The assignment will be due the following week.

Grading Policy 1. Points. Grade points for exams and homework, are allocated as follows: Mid-term exam Homework Final Examination 100 points 100 points 150 points 250 points 2. Grading Scale. ______________________________________________________________________________ A 90% or more of total B 80-89 C 70-79 D 60-69 F 59% or less of total ______________________________________________________________________________ Other Course Policies: 1. Inclement Weather. In the event school is canceled due to inclement weather on a scheduled exam date, THE EXAM WILL BE GIVEN ON THE FIRST CLASS MEETING FOLLOWING THE RESUMPTION OF CLASSES. 2. Special Learning Needs. VCU is committed to a policy of equal opportunity and affirmative action in education and employment, and complies with the requirements of the Rehabilitation Act of 1972, and the American Disabilities Act of 1990. If you require special accommodation, please see me in the first two weeks of class. 3. Attendance. I do not keep a strict attendance record. However, you are expected to both regularly and promptly attend class, and to participate in the lectures. You are responsible for all of the material covered in class. 4 Missed exams and assignments. a: Exams. If you must miss an exam, please see me prior to the exam date. If you have a legitimate excuse, alternative arrangements will be made. Otherwise, you will receive a grade of zero for the exam. Note: Please make every effort to take the final examination at the scheduled time. Alternative arrangements for the final examination are very difficult to make, and I am not permitted to give incompletes to students only for the purpose of scheduling a convenient alternative test time. b. Homework. Homework is collected at the beginning of class on the day it is assigned. Late homework will not be accepted.

5. Honor System: You are reminded that the academic campus at VCU operates under an Honor system. A full description of the Honor system is printed in full in the VCU Resource Guide. You are responsible for - Understanding the types of conduct which are deemed unacceptable and, therefore, are prohibited by this type of policy. - Refraining from committing any act of cheating, plagiarizing, facilitating academic dishonesty, abusing academic materials, stealing or lying. - Reporting every instance in which you have a suspicion or knowledge that academic conduct which violates this policy or its spirit has taken place either to me, or to an Honor System Coordinator on the Academic Campus. Course Outline (Tentative*
Date 1/20 1/27 2/3 2/10 2/17 2/24 3/2 3/9 3/16 3/23 3/26 3/30 4/6 4/13 4/20 4/26 5/4 5/11
*

Topic Preliminaries: Economic Models and the Mathematics of Optimization Preferences and Utility The Consumers Problem: Utility Maximization and Choice Properties of Consumer Demand Product Attributes and Consumer Choice Demand and Elasticity Choice Under Uncertainty: Expected Utility and Risk Aversion

Reading Ch. 1 and Ch. 2 Ch.3 Ch.4 Ch. 5 Ch. 6 Ch. 7 Ch. 8

First Examination
Spring Break No Class Production Functions Last Day to Drop with a W Costs Profit Maximization and Supply Partial Equilibrium Applied Competitive Analysis The Efficiency of Perfect Competition Imperfect Competition Monopoly Ch. 11 Ch. 12 Ch. 13 Ch. 14 Ch. 15 Ch. 17 Ch. 18

Final Examination

Reading may change depending on our rate of progress. Some topics may be deleted, and others added. The examination dates, however, are fixed.