Course Overview

Introduction to Microeconomics

This course provides a foundational understanding of microeconomics, focusing on the behavior of individual consumers and firms, market coordination, and the evaluation of market outcomes. Key topics include consumer theory, welfare analysis, firm theory, trade, market structures, and market failures.

• Optimizing Behavior: Analysis of how consumers and firms make decisions to maximize utility and profit.

• Market Coordination: Examination of how individual decisions are coordinated through markets.

• Market Outcomes: Evaluation of efficiency, government intervention, and market failures.

Course Objectives

• Understand the operation and limitations of the market system.

• Determine welfare implications of government policies.

• Analyze pricing behavior under various market structures.

• Evaluate the consequences of market failure.

Required Textbook and Resources

• Textbook: Hubbard, O’Brien, Serletis, and Childs, Microeconomics, Fourth Canadian Edition, Pearson 2023.

• Online Resources: Access to MyEconLab and Brightspace/D2L for assignments, lectures, and readings.

Evaluation and Grading

Assessment Structure

• Homework (Online): 35%

• Midterm (Online): 15%

• Final Exam (In-Person): 50%

Homework assignments are chapter-based, with the best ten scores counted towards the final grade. Exams are cumulative and cover all course material.

UFV Grade Scale

Course Schedule and Topics

Weekly Breakdown

• Week 1: Economics: Foundations and Models

  • Three Key Economic Ideas

  • Economic Problems all Societies must Solve

  • Economic Models

  • Microeconomics vs. Macroeconomics

  • The Language of Economics

  • Appendix: Using Graphs and Formulas

• Week 2: Trade-offs, Comparative Advantage, and the Market System

  • Production Possibilities Frontiers and Opportunity Costs

  • Comparative Advantage and Trade

  • The Market System

• Week 3: Where Prices Come From: The Interaction of Demand and Supply

  • The Demand Side of the Market

  • The Supply Side of the Market

  • Market Equilibrium

  • Effects of Demand and Supply Shifts

• Week 4: Economic Efficiency, Government Price Setting, and Taxes

  • Consumer Surplus and Producer Surplus

  • Efficiency of Competitive Markets

  • Government Intervention: Price Floors and Ceilings

  • Economic Impact of Taxes

• Week 5: Externalities, Environmental Policy, and Public Goods

  • Externalities and Economic Efficiency

  • Private Solutions: The Coase Theorem

  • Government Policies for Externalities

  • Categories of Goods

• Week 6: Elasticity: The Responsiveness of Demand and Supply

  • Price Elasticity of Demand and Measurement

  • Determinants of Price Elasticity

  • Elasticity and Total Revenue

  • Other Demand Elasticities

  • Elasticity in Agricultural Markets

  • Price Elasticity of Supply

• Week 7: Midterm Exam (Chapters 1–6)

• Week 8: Comparative Advantage and International Trade

  • Canada and the International Economy

  • Comparative Advantage in Trade

  • Gains from Trade

  • Trade Restrictions and Globalization

• Week 9: Technology, Production, and Costs

  • Economic Definition of Technology

  • Short Run vs. Long Run

  • Marginal and Average Product of Labour

  • Short-Run Production and Cost

  • Cost Curves

  • Long-Run Costs

• Week 10: Firms in Perfectly Competitive Markets

  • Characteristics of Perfect Competition

  • Profit Maximization

  • Cost Curve Analysis

  • Production Decisions

  • Entry and Exit in the Long Run

  • Efficiency

• Week 11: Monopolistic Competition

  • Demand and Marginal Revenue

  • Profit Maximization

  • Short-Run and Long-Run Profits

  • Comparison with Perfect Competition

  • Product Differentiation and Marketing

  • Success Factors

• Week 12: Oligopoly: Firms in Less Competitive Markets

  • Barriers to Entry

  • Game Theory Analysis

  • Sequential Games and Strategy

  • Competitive Forces Model

• Week 13: Monopoly and Antitrust Policy

  • Monopoly Identification

  • Sources of Monopoly

  • Monopoly Pricing and Output

  • Efficiency Impacts

  • Government Policy

• Final Exam: Covers Chapters 1–7, 9–13

Academic Regulations and Policies

• Academic Misconduct: Includes plagiarism, cheating, impersonation, and other violations. Refer to UFV Policy 70.

• Non-Academic Misconduct: Students must conduct themselves responsibly. Refer to UFV Policy 204.

• Withdrawal: Policies for withdrawal and late withdrawal are outlined in UFV Policy 81.

• Grade Appeals: Appeals must be made within 14 days of grade release (UFV Policy 217).

• Copyright: Course materials are protected under the Copyright Act of Canada. Unauthorized sharing is prohibited.

• Student Support: Referral to the Student Support Centre is available for academic assistance.

Summary Table: Course Chapters and Topics

Key Microeconomics Concepts (Preview)

• Opportunity Cost: The value of the next best alternative foregone when making a decision.

• Comparative Advantage: The ability to produce a good at a lower opportunity cost than others.

• Market Equilibrium: The point where quantity demanded equals quantity supplied.

• Elasticity: Measures responsiveness of demand or supply to changes in price or other factors.

• Externalities: Costs or benefits affecting third parties not involved in a transaction.

• Market Structures: Includes perfect competition, monopolistic competition, oligopoly, and monopoly.

Additional info: The syllabus aligns closely with standard microeconomics curriculum, covering all foundational topics required for college-level study.