OFFICIAL COURSE DESCRIPTION:
ECO 3101 - Intermediate Price Theory - 3 credit hours
Behavior of individual economic units, primarily consumers and firms. Development of tools for analysis and explanation of various economic phenomena.
Prerequisite(s): ECO 2023 - Principles of Microeconomics

Additional Course Description:
Microeconomic theory is the primary foundation for all other neoclassical economic theory including most of macroeconomics. Microeconomic theory provides insights into the behavior of both individual and collective actors (firms) in markets. This course is probably the most important core course in an economics curriculum and will require extensive outside work on your part.

The strength of this course is that it will provide you with an insight into how economists analyze practical problems which present themselves to policy makers in the real world. We will develop a "set of tools for analysis" which you will be expected to apply in a practical manner. The materials in this course are used extensively in economics, financial economics and all businesses at the higher levels of decision making.

There are questions at the end of each chapter which will help you to practice transferring your knowledge. We meet for 2.5 hours a week in class. I would strongly suggest that you block out 8 - 10 hours a week to study for this course. I will do all that I can to help you but the major responsibilities for this course lie on your shoulders. Office hours will be held regularly at posted times and by appointment. Please use these times to your advantage.

What we will attempt to do in this course follows:

There are basically three progressive steps in learning that I am interested in: acquisition, retention, and transfer or application. In this course, the cumulative exercise - the examination - will require you to apply the concepts which you have learned. This is impossible without acquisition and retention. In the economists' jargon, acquisition and retention are "necessary conditions" for success in this course, but they are not the "sufficient condition." The "sufficient condition" is the ability to apply what you have acquired and retained to a broad range of problems and situations - we call this transfer or application.

TEXTBOOKS

REQUIRED TEXTBOOKS: (If you have any confusion about what "Required" means please click on it to be redirected.)

1) Microeconomics: Theory and Applications, 10th Edition by Edgar K. Browning and Mark A. Zupan. You will be expected to have a copy of the textbook in all class meetings - I refer to it extensively.

2) APLIA subscription for Microeconomics: Theory and Applications, 10th Edition by Browning & Zupan. How to Access your Aplia Course.

3) Sign up for Drop Box at http://db.tt/K3RbrHD and I will use this shared folder ECO 3101 Fall 2011 if I want for you to get something from class lectures for the course.

Note: The textbook is available online with the APLIA subscription and you can print it out to meet the "bring the book to class requirement" though that typically indicates one or some combination of the following: (1) a horrific misjudgment of your opportunity costs, (2) the inability to do simple cost calculations for paper and ink, (3) theft, from the business owner(s) if you use the printer at work, (4) subsidy, if Mom or Dad let you use their printer or refer to (3) if they print it at work.

SUGGESTED TEXTS:

Students often grossly underestimate the time commitment for difficult courses like this. If you have any trepidation about your study habits or you have had more than a year since you took the principles of economics I strongly suggest that you purchase and use the Study Guide that accompanies this book. It has good sets of review questions with the answers and a section-by-section summary of the textbook.

4) Study Guide, Microeconomics: Theory & Applications by Veronica Horton (ISBN 978-0-470-12891-6)

You may also want to use the Student Companion Web Site - it has Power Point slides, chapter quizzes and business simulations.

Fall 2011 - IMPORTANT DATES:
Academic Calendar for the Fall 2011 Semester
Classes begin Monday, August 22, 2011
Labor Day (no classes) Monday, September 5
Examination 1 - Tuesday, September 27, 2011
Fall Break (no classes) or Hurricane Make-up Days Monday, October 10 - Tuesday, October 11
Examination 2 - Tuesday, November 1, 2011
Veteran's Day (no classes) Monday, November 11, 2011
Thanksgiving Observed (no classes) Wednesday, November 23 - Saturday, November 26
Last day to Drop/Withdraw without Academic Penalty is Friday, November 4
Last Day of Classes is Monday, December 5
Finals Begin Saturday, December 10
Finals End/ Last Day of Semester Friday, December 16

Final Examination Schedule
CRN 80153 will be held 7:30 a.m. - 10:15 a.m. Thursday, December 15, 2011 in LH 2201. Your continued enrollment in this course indicates that you have this time on your schedule. If you cannot make the final examination go ahead and drop the course now.

CRN 80154 will be held 4:30 p.m. - 7:15 p.m. Thursday, December 15, 2011 in LH 2210. Your continued enrollment in this course indicates that you have this time on your schedule. If you cannot make the final examination go ahead and drop the course now.

 

Learning Outcomes for
ECO 3101

Learning Outcomes	Assessment Strategies
Outcome 1: Develop analytical capabilities through the use of modeling exchange behaviors. Use models to explain and predict individual behavior in a wide range of market and non-market settings. Major topics include: economic cost measures, demand and supply models, theory of consumer choice, elasticity, welfare, market demand, and using these models to explain or predict.	Examinations covering various aspects of economic costs, demand and supply analysis, elasticities, consumer choice analysis, and utility (Examination 1).
	Use of APLIA as a course management tool requiring ongoing and consistent application of course concepts in this section.
Outcome 2: Develop and explain the relationships between production theory and cost functions. Understand price taking (pure competition)and price making (pure monopoly), oligopoly and monopolistic competition) models of market structure to explain and predict the behavior of firms in market settings. Explain the role that prices play in transmitting knowledge within a market economy. Describe spontaneous order and the effects of centralization within a economy.	Examinations covering production and cost, pure competition theory and applications, and basic monopoly theory. (Examination 2).
	Use of APLIA as a course management tool requiring ongoing and consistent application of course concepts in this section.
Outcome 3: Understand price making (oligopoly and monopolistic competition) models of market structure to explain and predict the behavior of firms in market settings. Understand the rudiments of game theory, asymmetric information, adverse selection and moral hazard. Outcome 4: Develop an appreciation for the ubiquitous nature of markets as an integral conduit for human action.	Examinations on product pricing with market power, the rudiments of game theory, asymmetric information, adverse selection and moral hazard. (Examination 3). Class discussions of article(s) with analysis of the author's points leading to examinations (Examination 3).

Grading Scale:
The University allows assignment of grades on a +/- system. I support that form of grading and keep all final grades in that format. Because a "C" is considered the top grade for a student to progress I have extended the range of a "C" to include what is traditionally the "C-" range.

	A 100.0% to 93.0%	A- 92.9% to 90.0%
B+ 89.9% to 87.0%	B 86.9% to 83.0%	B- 82.9% to 80.0%
C+ 79.9% to 77.0%	C 76.9% to 70.0%	C- No such grade in my rubric. You need a "C" to move forward in the College of Business.
D+ 69.9% to 67.0%	D 66.9% - 63.0%	D- 62.9% to 60.0%
	F below 59.9%

Graded Assignments:

Graded Assignments	Percent of Final Grade	Coverage	Date Due
Class Participation Grade: APLIA Homework and Pop Quizzes	20%	Homework is assigned on the APLIA web site and it will provide the major component of your Class Participation Grade. We we will have in-class pop quizzes which will be included in this grade. They will be weighed as one APLIA assignment. Pop quizzes are triggered primarily by two things: a violation of the course electronics policy and being obviously unprepared for class meetings.	As assigned on the APLIA web site
Examination #1 will cover class notes, textbook readings and any other assigned readings. This examination counts for 25% of your grade.	25%	Textbook: Browning and Zupan Chapters 1, 2, 3, 4 & 5 Each textbook chapter has a Chapter Outline and a set of Learning Objectives that will be used to guide your studying and to build examinations. Use them, I do! See APLIA for reading/listening dates: Author: Leonard E. Read Title: "I, Pencil" Foundation for Economic Education, December 1958 ECONTALK with Russ Roberts and Mike Munger on "Price Gouging" Podcast - Listen with Chapter 2 coverage (Week 2)   Handouts -ALSO see Aplia Some of are developed for a Principles of Economics course but provide a good review here for some of the content in Chapters 1&2 in this course. Deductive vs. Inductive Reasoning Accounting Costs vs. Economic Costs Rational Choice Models Prices: Nominal and Real and CPI Calculations Supply and Demand - Introduction Demand Analysis Framework Supply Analysis Framework Elasticity's Rent Controls Income and Substitution Effects Tax and Subsidy Effects	Examination 1 - Tuesday, September 27, 2011   Essay Exam Guidelines
Examination #2 will cover class notes, textbook readings and any other assigned readings. This examination counts for 25% of your grade.	25%	Textbook: Browning and Zupan Chapters 7,8,9,& 10 Each textbook chapter has a Chapter Outline and a set of Learning Objectives that will be used to guide your studying and to build examinations. Use them! See APLIA for reading/listening dates: (1) Author: Hayek, F. A., 1899-1992. Title: "The Use of Knowledge in Society" Hayek, F. A., "The Use of Knowledge in Society". American Economic Review . XXXV, No. 4; pp. 519-30. September, 1945. Library of Economics and Liberty. 1 August 2007. <http://www.econlib.org/library/Essays/hykKnw1.html>. * Here is a Study Guide for this reading. Handouts: See APLIA	Examination 2 - Tuesday, November 1, 2011 Essay Exam Guidelines
Examination #3 is COMPREHENSIVE and will cover class notes, textbook readings and any other assigned readings. Half of the materials will come from the materials in Exams 1 & 2. This examination counts for 30% of your grade.	30%	Textbook: Browning and Zupan Chapters 11, 12, 13 (skipping 13.2 & 13.3 except for the last section of 13.3 covering the Dominant Firm Model) and Chapter 14 Each textbook chapter has a Chapter Outline and a set of Learning Objectives that will be used to guide your studying and to build examinations. Use them! See APLIA for reading/listening dates: Author: Ayn Rand Title: Capitalism: The Unknown Ideal, Chapter 1 - What is Capitalism? Source: Signet Books * Here is a Study Guide for this reading.	Final Examination Essay Exam Guidelines CRN 80153 will be held 7:30 a.m. - 10:15 a.m. Thursday, December 15, 2011 in LH 2201. CRN 80154 will be held 4:30 p.m. - 7:15 p.m. Thursday, December 15, 2011 in LH 2210.

Grading Policies
APLIA Homework Grade (20%):
APLIA is a web-based interactive homework software. To access the web site, you need to register for an account with Aplia at http://econ.aplia.com. Use this link above under Required Textbooks for instructions. Please register on the web site immediately using the course key above (under Required Textbooks). You have some grace period for payment and it is noted on the instruction sheet. The Aplia is set to Average. This counts all of your attempts at a question but allows you to get feedback and better your grade. The purpose of the Aplia exercises is to learn the materials for the examinations.

Each APLIA homework constitutes a grade and all APLIA assignments are weighted equally. For each six (6) recorded grades I drop one (1) lowest grade. Suppose we had 20 grades in Aplia - I will drop your three lowest grades (20/6 = 3.33).

We also use computerized simulations called experiments in the course a couple of times. Each experiment will have three aspects (1) Preparation, (2) Experiment (3) Follow-up on the topic covered in the experiment (e.g., Price Floors and Price Ceilings.) The Experiment itself will take place out of class - you can sign on anywhere you can use a computer and participate. The Experiment itself is not required because it is out of structured class time. All students are REQUIRED to do (1) Preparation and (3) Follow-up. Hopefully you are asking: "What is the incentive for me to participate then?"

I hope taking responsibility for your learning or intellectual curiosity will suffice but in case they don't you earn a 100% on the Experiment for simply participating AND I will drop one more additional low grade from Aplia at the end of the semester. Back to out initial example: Suppose we have 20 Aplia assignments where we would normally drop your 3 lowest grades. Now - if you do one experiment I will drop 4 scores, rather than 3, and give you 100% for the participation on that experiment - if you do two experiments I will drop 5 scores, rather than 3, and give you 100% for the participation on each experiment you do, and so on. In short, no one is penalized for not being able to do the experiment - it can only help your grade.

Do not take APLIA lightly - it represents 20% or two, full letter grades of your final course grade.

Examinations (80%):
Each examination covers a specific set of readings that are listed in the course outline and in the table above. Options for examination questions include: multiple choice, short answer, true/false/defend and essays. Bring a BLANK Scantron form to each examination - do not write your name on it - I collect them from you and redistribute them at the beginning of the examination. Scantron forms (use Pearson NCS Test Sheets 100/100, Form No. 95679) are available in the Campus Bookstore. Where essays are required I will provide space on the examination for your answer. As far as electronics, your BAII-Plus calculator is allowed but no other electronic equipment will be allowed including cell phones.

Examination Grade Challenge Policy:
When an exam is handed back we will go over it in class and you will hand it back in during class. Once the examination is handed back to you there is a one-week cooling-off period. Then you can make an appointment with me to come by during office hours and challenge my grading but be prepared. At two weeks after the examination is returned to you, grades on all examinations and assignments are finalized.

Missed Examinations or Assignments:
If you miss an examination I must have an email or phone call before or during the assessment event - simply not showing up earns a grade of "0" on any assignment. My email is bhobbs@fgcu.edu and my phone number is 590-7162: voice messaging is available at all times. Where I have been notified as explained above, the points for the missed examination will be calculated as the average of your other two examination scores. If you miss two or more examinations you will receive a grade of "0" on them and there is no way to pass the course. A missed Final Examination will: (1) lead to an assigned grade of "incomplete" so long as I am contacted prior to the examination as noted above and, (2) require you to take a makeup examination and complete the examination prior to the university's deadline for making up an incomplete. It is your responsibility to contact me and coordinate the process of the makeup final examination and the grade change. All incomplete's not completed by the university's deadline become an "F".

Assignments other than examinations (e.g., papers and presentations) lose 10% or one letter grade per day. If a group presentation is required your failure to participate in it earns you an automatic "0" for the presentation portion of that assignment.

Late quizzes or APLIA homework's earn a score of "0".

ACADEMIC DISHONESTY/CHEATING:
Academic Honesty is your responsibility and ethical duty. Cheating is a rampant problem on college and university campuses today. As a social scientist, I think it says something quite interesting about our current culture -- or perhaps Glaucon, Adeimantus and Thrasymachus were right (see The Republic of Plato, Part II "Justice in the State and in the Individual", Chapter V, "The Problem Stated".)

Appropriate steps for dealing with scholastic dishonesty are spelled out in the Student Guidebook and these steps will be followed if this activity is revealed in your case. These guidelines pertain to all work done in this class including take home assignments and graded homework. (You have explicit permission to engage in group homework under the conditions outlined above.)

My attitude concerning academic dishonesty is simple: cheating is not worth the potential consequences of getting caught nor the self-degradation which it involves whether you are caught or not.

 

OTHER COURSE ISSUES:

Studying I expect students to spend 2-3 hours of work outside of class for every hour you are in class. This means attending class plus spending 6-9 hours on course work including readings, assignment and studying. For a 15-hour load this means 30-45 hours a week on your courses. A 2007 study by the National Survey of Student Engagement found that full time students self reported (thus, probably an exaggerated report) spending about 13 - 14 hours per week (for a 15-hour load). As I tell my college-enrolled kids, "This may sound like a lot but this is the easiest 30 hour a week job you'll ever have! So stop whining and get the most out of the vast array of resources a university provides you. We owe it to the taxpayers - who subsidize this endeavor to the tune of about 75%. We owe it to ourselves - to be all that we can be." According to this study, I am swimming upstream. But, swim, I must. Economics is intellectually challenging. On the upside, Stinebrickner & Stinebrickner in 2007 find that studying an extra hour per week has the same effect on student achievement as a 5-point increase in your ACT scores. Sources : National Survey of Student Engagement. Experiences That Matter: Enhancing Student Learning and Success. Bloomington, IN: Center for Postsecondary Research, 2007. Stinebrickner, T. & Stinebrickner, R. "The Causal Effect of Studying on Academic Performance." Working Paper W13341. Cambridge, MA: National Bureau of Economic Research, Aug. 2007. (Thanks to Professor Linda Ray for these tidbits of truth.)

Attendance Policy:

"The discipline of colleges and universities is in general contrived, not for the benefit of the students, but for the interest, or more properly speaking, for the ease of the masters. Its object is, in all cases, to maintain the authority of the master, and whether he neglects or performs his duty, to oblige the students in all cases to behave to him as if he performed with the greatest diligence and ability. It seems to presume perfect wisdom and virtue in the one order, and the greatest weakness and folly in the other. Where the masters, however, really perform their duty, there are no examples, I believe, that the greater part of the students ever neglect theirs. No discipline is ever requisite to force attendance upon lectures which are really worth attending…”

An Inquiry into the Nature and Causes of the Wealth of Nations, Book V, Chapter 1, Part f, Paragraph 15
Adam Smith

My attendance policy is laissez-faire. The translation from French is roughly "to allow to act". In other words, you are allowed to do whatever you want to do with regard to attendance: after all, only you can decide what your opportunity costs are. Whatever your proclivities for attendance may be, you are responsible for the materials of the course.

Learning is a shared responsibility and as a result I won't be using valuable student office hours to redeliver the lecture because you chose not to come to class. Class lectures are, but, one way to learn - there are others. If you miss class I would suggest that you get the notes, handouts, cases, etc. from a fellow student. There are many things covered in class that are assessed in this course so you should definitely obtain a copy of class notes should you decide to not attend the class.

In closing, though my attendance policy is laissez-faire, I should note that for nearly all students there is a high and positive correlation between class attendance and grades. I encourage you to fully participate in your education. I will take role daily for administrative purposes and, if need be, to explain to you why you are not doing so well in this course.

Assigned Readings:
There are a handful of assigned readings in this course. You are expected to read the and . In order to have an effective class discussion you must: (1) Read the article prior to the class meeting, (2) Come prepared to both ask and answer questions on the reading, and (3) Bring your copy of the article and your notes on it to the class meeting.

Group Work:
Research in the area of learning has substantiated the positive effects of group study. When carried out with serious effort the returns to group study can be great for all members of the group. I would strongly encourage you to form study groups and set a weekly meeting time to discuss this course. I would ask that you assist each other; treating the study group as a cooperative experience rather than a competitive one. I have no problem with groups working together on the homework assignments.

Unless explicit permission is given (such as homework assignments above), all work handed in must be done alone.  You are welcome to discuss and work together but when you "put pencil to paper" it must be your own work.  To do otherwise will be regarded as an act of academic dishonesty.

Scantrons
You must bring Scantron forms to examinations. Use Pearson NCS Test Sheets 100/100, Form No. 95679. They are available at the Book Store.

Electronics in the Classroom:
One must focus to do university-level work in this field of study. The required calculator - a Texas Instruments BA II PLUS - is the only electronic device allowed to be used during class. USING ANY OTHER ELECTRONIC DEVICE INCLUDING PHONES, I-PODS, TABLETS, LAPTOPS, ETC. IS PROHIBITED DURING CLASS MEETINGS. Failure to comply with this rule has the following consequence: any infraction will lead to you being identified as the person responsible for the quiz that the entire class will take as a result of your action. These quizzes will be included in your Aplia grade (Hat Tip to Professor Kerekes)

University Statements:
Academic Behavior Standards and Academic Dishonesty
All students are expected to demonstrate honesty in their academic pursuits. The university policies regarding issues of honesty can be found in the FGCU Student Guidebook under the Student Code of Conduct and Policies and Procedures sections. All students are expected to study this document which outlines their responsibilities and consequences for violations of the policy. The FGCU Student Guidebook is available online at http://studentservices.fgcu.edu/judicialaffairs/new.html

Disability Accommodations Services
Florida Gulf Coast University, in accordance with the Americans with Disabilities Act and the university’s guiding principles, will provide classroom and academic accommodations to students with documented disabilities. If you need to request an accommodation in this class due to a disability, or you suspect that your academic performance is affected by a disability, please contact the Office of Adaptive Services. The Office of Adaptive Services is located in Howard Hall 137. The phone number is 239-590-7956 or TTY 239-590-7930

Student Observance of Religious Holidays
All students at Florida Gulf Coast University have a right to expect that the University will reasonably accommodate their religious observances, practices, and beliefs. Students, upon prior notification to their instructors, shall be excused from class or other scheduled academic activity to observe a religious holy day of their faith. Students shall be permitted a reasonable amount of time to make up the material or activities covered in their absence. Students shall not be penalized due to absence from class or other scheduled academic activity because of religious observances. Where practicable, major examinations, major assignments, and University ceremonies will not be scheduled on a major religious holy day. A student who is to be excused from class for a religious observance is not required to provide a second party certification of the reason for the absence.

Student Responsibilities
There are no extra credit assignments. Graduation, scholarships, work, financial aid, personal plans, etc. have nothing to do with grades in this course. Grades are based on performance-See the Catalog. Course grades are available via Gulfline (see the Catalog).

The exams are closed book. A student must complete the exams at the scheduled times on the scheduled dates or provide written documentation of an Authorized Absence or Excused Absence (Catalog p.39). An Authorized Absence is due to participation in a sponsored activity that has been approved in advance by the program director and the appropriate student affairs officer. An Excused Absence is due to other causes, such as illness, family emergency, death in the family, or religious holiday. A student seeking an Excused Absence must obtain documentation such as a physician's statement, accident report, or obituary. If a student misses Exam1 or Exam 2 due to an approved or authorized absence, the weight is rolled into the final examination. If a student misses both Exam 1 and Exam2 for any reason, the student will receive either an Incomplete (documented medical or family tragedy) or an F grade. Students are required to show a photo ID (FGCU ID or Driver's License or Passport) to complete the Exams. The exams are property of the instructor and are not returned to students. The exams can be reviewed with the instructor during office hours. Students may be assigned or reassigned seats for exams.

The eight questions you should never ask your professor:

1. Will I miss anything by not being in class tomorrow?
2. May I hand in this assignment late?
3. Is this good enough for full credit?
4. Since I got (earned) such a poor score can I resubmit it?
5. Is there anything I can do for extra credit?
6. Will this be on the examination?
7. Are you busy?
8. Actually, this is an oft-heard statement: "I knew the material; I just don't test well."
   
   Those students who ask such questions do not realize the statement they are making about their understanding of professional and career work standards. My answers follow so we can cut through this quickly.

1. Will I miss anything by not being in class tomorrow? Of course, you will miss something by not being in class unless I am wasting my time and yours already.
2. May I hand in this assignment late? Deadline. Think about the word dead; and then the word line.
3. Is this good enough for full credit? You are a university student and should be developing that assessment yourself. This is how it works: you hand it in and I grade it.
4. Since I got (earned) such a poor score can I resubmit it? I applaud students who go back and learn from their mistakes on examinations but your initial grade stands.
5. Is there anything I can do for extra credit? You aren't doing so well on the regular credit - I'd hate to load you up with anything extra.
6. Will this be on the examination? Perhaps. Anything we cover or that is assigned in this course is fair game.
7. Are you busy? Yes, I have a galloping career that involves teaching, service and research. However, I have an obligation to respond to your inquiries and concerns and have set office hours aside for that purpose. If I am in the middle of something I may ask you to find a time that we can both meet and focus on what your needs are.
8. "I knew the material; I just don't test well." Yes, I know, I graded it. Realize that you must also be able to communicate your knowledge. There are three steps on the road to understanding a corpus body of knowledge: acquisition, retention, and application. You may also be overestimating how well you know the materials because you have stopped too early in this process. See this link! And this one!

Disclaimer: The schedules and procedures in this course are subject to change in the event of extenuating circumstances.

Web page Last Updated on December 20, 2011

© FGCU 1997. The framework and images are those of an official FGCU web page.

© Bradley K. Hobbs, Ph.D. 2001. All written portions of this work are those of Bradley K. Hobbs and his alone.
Intellectual property rights are claimed over my intellectual product (Read "Capitalism" by Ayn Rand.)