MCCCD Program Description

Microeconomic Principles

Course: ECN212

First Term: 2020 Fall

Lecture 3.0 Credit(s) 3.0 Period(s) 3.0 Load
Subject Type: Academic
Load Formula: S - Standard Load

Description: Microeconomic analysis including the theory of consumer choice, price determination, resource allocation and income distribution. Includes non-competitive market structures such as monopoly and oligopoly; and the effects of government regulation.

MCCCD Official Course Competencies
1. Define the major concepts in economics and characterize key economic principles. (I) 2. Describe the determinants of supply and demand and their effect on equilibrium price. (II) 3. Define price elasticity and apply the tool to real world business and policy decisions. (III) 4. Apply utility theory to predict a consumer`s optimal behavior/choices based on preferences, income, prices, and other constraints. (IV) 5. Explain the relation between a firm`s production and its costs. (V) 6. Identify market structures based on their salient features, and compare and contrast their expected outcomes, including policy implications. (VI) 7. Apply producer theory to predict a firm`s optimal behavior/choices based on a firm`s costs and revenue constraints in both the short-run and long-run. (VII) 8. Apply market theory to the unique features of resource markets. (VIII) 9. Define market failure and examine policy recommendations to correct for them. (IX)

MCCCD Official Course Outline
I. Major Concepts in Economics A. Definition of economics B. Real world economics applications C. Economic decision making D. Four categories of economic resources E. Production possibilities curve II. Supply, Demand, and Markets A. The Law of Demand 1. Demand vs quantity demanded 2. Factors that cause demand curves to shift B. The Law of Supply 1. Supply vs quantity supplied 2. Factors that cause supply curves to shift C. Market equilibrium price and equilibrium quantity 1. Market efficiency 2. Consumer and producer surplus D. Price controls on a market 1. Deadweight loss III. Price Elasticity A. Elasticity measurements B. Elasticity and consumer behavior C. Elasticity and firm revenue D. Real-world policy applications IV. Utility Theory and Consumer Behavior A. Goal and constraints of the consumer B. Diminishing marginal utility C. Consumer behavior/choice V. Production and Costs A. Marginal product, average product, and diminishing marginal returns B. Production and costs in the short-run and the long-run C. Producer`s marginal, average, and total costs of production D. Economic costs vs accounting costs VI. Market Structures A. Types of market structures VII. Producer Behavior in the Short- and Long-run A. Determination of output, price, profits, and entry/exit for 1. Perfect Competition 2. Monopoly 3. Monopolistic Competition 4. Oligopoly VIII. Resource Markets A. Marginal productivity analysis B. Labor markets C. Other productive resources (e.g., land, capital) IX. Market Failure A. Types of market failures B. Private costs vs social costs C. Private benefits vs social benefits D. Government address of market failure

MCCCD Governing Board Approval Date: December 10, 2019

All information published is subject to change without notice. Every effort has been made to ensure the accuracy of information presented, but based on the dynamic nature of the curricular process, course and program information is subject to change in order to reflect the most current information available.