Micro I - Syllabus

Microeconomics I
2021/2022, Term III

Course faculty:
Professor Yulia Kuntsevych, PhD
E-mail: [email protected]
Course assistants: Marian Melnyk, [email protected]
Office hours: TBA, office 4.15 Faculty Office | Bachelor's Programs
Amount of ECTS credits: 4
Class hours: 60 hours: approximately 30 lecture hours (2-3 times per week, depending
on the week) + 26 practice hours (1-2 times per week) + midterm and final exams, 2 hours
each
Background and course rationale: The aim of this course is to study the main topics of
Microeconomics, master the tools of microeconomic analysis. Microeconomics I have on
its goal to introduce the classical theory of consumer choice, choice under uncertainty,
the theory of producer behavior and the partial equilibrium model in a perfectly
competitive market.
Prerequisites:
Basic knowledge of linear algebra, mathematical analysis and theory of probability are
required for understanding and successful passing of the course.
Learning outcomes:
● students will know the basic concepts used in classical and neoclassical theories
of consumer choice
● students will be able to formulate and solve the maximization problem of consumer
utility for various preferences and budget constraints
● students will know differences between substitution and income effects on the
volume of demand
● students will be able to use expected utility theory to predict the behavior of agents
under uncertainty
● students will be able to formulate and solve the short and long-term profit
maximization and cost minimization problems
● students will be able to derive short-term market supply and demand functions
from individual supply and demand functions
● students will be able to find the parameters of short- and long-term equilibrium in
a completely competitive market
● students will be able to predict and illustrate the consequences of government
regulation for the short- and long-term equilibrium in a competitive market
How we will work at this course (what kind of tasks and activities students are
expected do):
This 8-week course will consist of approximately 30 (offline or online) lectures and
practice work (problem solving sessions) twice a week. Students are highly
recommended to attend all lectures and problem-solving sessions timely.
Each lecture will begin with a short quiz designed to test knowledge of the lecture material.
Midterm exam will be scheduled tentatively on the 4th week, and the Final exam will
tentatively take place during 8th week of the term
You will also be given at least 5 homework assignments. The TA will be responsible for
grading your homework problem sets and answering questions concerning grades and
solutions.
Grading Policy: 30% homework, 30% midterm exam, and 40% final exam. Submissions
after the deadline receive at most 50 % of the full grade; submissions more than 4 days
later than the deadline receive zero grade (but you can nevertheless submit if you missed
the second deadline to obtain the feedback on your assignment. There will be no make-
up for quizzes.
What final exam will look like: Midterm exam will be held during the first half of the
course and cover the material explained during the first half of the course; final exam will
cover the material explained during the whole term.
The final exam is tentatively scheduled for the week February 28–March 4 2022; the
make-up for the exam is tentatively scheduled for the week March 7–March 11 2022.
Learning materials for the course (texts, video, audio etc):
● Hal R Varian. Intermediate Microeconomics: A Modern Approach
● Robert Pindyck, MIT, Daniel Rubinfeld, University of California, Berkeley.
Microeconomics, 9th Edition
● Online KSE course ECO8011_2020 Економіка Без Міфів
https://teaching.kse.org.ua/course/view.php?id=1296
Course venue: KSE Dragon Capital Building, 3 Mykola Shpak Street, Kyiv
Academic integrity warning
Academic integrity is highly valued by the KSE community and its vast majority of
students. We do not tolerate plagiarism and cheating. Very competitive essence of the
program calls for absolutely equal treatment of all students. Even a single case of violation
of academic integrity is a serious misdemeanor which may lead to unjust redistribution of
grades and, consequently, overall rankings, possible grants, fee reductions and other
merit-based awards. The minimum penalty for a student caught cheating or plagiarizing
during a quiz, a midterm or a final exam will be a zero for this assignment with the
consecutive decrease of the final course grade by at least one letter-grade. Repetitive
violation of academic integrity may lead to the dismissal of the student from KSE, upon
approval of the faculty committee. Please take this issue seriously and responsibly.
Course Plan
1. What is microeconomics
Introduction. Goals and objectives of the course, the meaning of studying economics in
general and microeconomics in particular. Basic premises of classical microeconomic
theory. Market concept, competitive market.
2. Demand and supply
Supply and demand curves. The concept of elasticity, elasticity of supply and demand in
the short and long term. Examples of the consequences of government intervention:
minimum wages, price controls.
3. Consumer behavior
Consumer preferences, budget constraints, the impact of changes in income and prices.
Indifference curves, marginal rate of substitution
4. Individual and market demand and supply
Income effect and substitution effect. Market demand and consumer surplus
5. Uncertainty and consumer behavior
Choice under uncertainty. Definition of risk. Risk mitigation measures, insurance
6. Economy of the company
Production technology, production function. Short and long term. Production with one
variable factor, average and marginal products. The law of diminishing productivity.
Production with two factors. Substitution of factors of production. Supply curve.
Producer surplus.
7. Production costs
Measurement of production costs. Costs in the short and long term.
8. Maximization of production and competitive supply
Marginal revenue, marginal cost, and profit. Maximization. Short and long term supply.
9. Analysis of the competitive market
Assessment of gains and losses from government regulation. Effectiveness of a
competitive market. Example: welfare implications of trade barriers.

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Microeconomics I

2021/2022, Term III

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