Lahore University of Management Sciences

MECO 111 Principles of Microeconomics

Fall Semester 2016

Instructor Ghazal Zulfiqar

Room No. 327, 3rd Floor SDSB Building
Office Hours Tuesdays and Thursdays, 10am to Noon
Email ghazal.zulfiqar@lums.edu.pk
Telephone 8456
Secretary Muhammad Rehman (Ext. 5310)
TA Office Hours Zainab Raza and Mahnoor Sheikh
Course URL (if
any)

COURSE BASICS
Credit Hours 3
Lecture(s) Nbr of Lec(s) Per 2 Duratio 75 minutes
Week n
Recitation/Lab (per Nbr of Lec(s) Per Duratio
week) Week n
Tutorial (per week) Nbr of Lec(s) Per Duratio
Week n

COURSE
DISTRIBUTION
Core Yes
Elective
Open for Student
Category
Close for Student
Category

COURSE DESCRIPTION
This course teaches basic microeconomic concepts and their implications for individuals and firms. Particular
attention will be paid to understanding the decision making process of households, business firms and government,
and consequent allocation of resource and price determination under different market structures. Market equilibrium
conditions will be discussed in the short run and the long run under various market models. This course is meant to
foster critical evaluation of standard economic concepts such as scarcity and choice, demand and supply, cost and
productions, government intervention & market failure, price mechanism, the efficient allocation of scarce resources
and concludes with game theory.

COURSE PREREQUISITE (S)

None

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LEARNING OUTCOMES

Upon completion of the course students would:

1. Have developed an understanding of basic microeconomic concepts and their application to real
world situations.
2. Be able to identify core microeconomic issues related to business firms and their behavior under
different market conditions.
3. To comprehend the benefits of market efficiency in resource allocation.

UNDERGRADUATE PROGRAM LEARNING GOALS & OBJECTIVES

General Learning Goals & Objectives
Goal 1 Effective Written and Oral Communication
Objective: Students will demonstrate effective writing and oral communication skills
Goal 2 Ethical Understanding and Reasoning
Objective: Students will demonstrate that they are able to identify and address ethical issues in an
organizational context.
Goal 3 Analytical Thinking and Problem Solving Skills
Objective: Students will demonstrate that they are able to identify key problems and generate viable
solutions.
Goal 4 Application of Information Technology
Objective: Students will demonstrate that they are able to use current technologies in business and
management context.
Goal 5 Teamwork in Diverse and Multicultural Environments
Objective: Students will demonstrate that they are able to work effectively in diverse environments.
Goal 6 Understanding Organizational Ecosystems
Objective: Students will demonstrate that they have an understanding of Economic, Political,
Regulatory, Legal, Technological, and Social environment of organizations.

Major Specific Learning Goals & Objectives

Goal 7 (a) Program Specific Knowledge and Understanding
Objective: Students will demonstrate knowledge of key business disciplines and how they interact
including application to real world situations.
Goal 7 (b) Understanding the science behind the decision-making process (for MGS
Majors)
Objective: Students will demonstrate ability to analyze a business problem, design and apply
appropriate decision-support tools, interpret results and make meaningful recommendations to support
the decision-maker

Indicate below how the course learning objectives specifically relate to any program
learning goals and objectives.

Program Learning Goals and
Objectives
Goal 1 Effective Written and Oral
Communication
Goal 2 Ethical Understanding and
Reasoning
Goal 3 Analytical Thinking and
Problem Solving Skills
Course Learning Objectives
Learning outcomes 1, 2 and 3
Learning outcomes 1, 2 and 3
Course Assessment Item
Class participation, quizzes,
assignments and exams.
Class participation, quizzes,
assignments and exams.

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Goal 4 Application of Information

Technology
Goal 5 Teamwork in Diverse and
Multicultural Environments
Goal 6 Understanding Yes, students should be able to Class participation, quizzes,
Organizational Ecosystems demonstrate knowledge of the assignments and exams.
economic environment of
organizations
Goal 7 (a) Program Specific Learning outcomes 1, 2 and 3 Class participation, quizzes,
Knowledge and Understanding assignments and exams.
Goal 7 (b) Understanding the
science behind the decision-making
process

GRADING BREAKUP AND POLICY

Attendance: 5%
CP: 5%
Quiz(s): 20%
Assignments 10%
Midterm Examination: 30%
Final Examination: 30%

Attendance
Being late by 5 minutes or more to class automatically earns an absence.
Regular attendance and class participation is critical to this course. There will be no penalty for the first 3
absences, after which there will be a 1% reduction in your grade for up to five absences. After 5 absences
there will be a 2% reduction in your grade for each additional absence. After 8 absences your possibility for
continuing the course will need to be seriously evaluated by the instructor .

Assignments & Quizzes

6 quizzes (n-2 policy)
2-3 written assignments to be completed independently.

Examinations:
Both exams will be a combination of multiple choice, T/F and short descriptive questions.

CELL PHONES, LATPTOPS AND OTHER ELECTRONICS SHOULD BE TURNED OFF DURING
CLASS. ABSOLUTELY NO TEXTING OR INTERNET BROWSING WILL BE TOLERATED
DURING CLASS

EXAMINATION DETAIL

Yes/No: Yes
Midterm Combine Separate:
Exam Duration:
Preferred Date:
Exam Specifications:

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Yes/No: Yes
Combine Separate:
Final Exam Duration:
Exam Specifications:

COURSE OVERVIEW
Recommended Objectives/
Lecture Topics
Readings Application
Introduction to Chapter 1 Introduction to basic microeconomic concepts,
Microeconomics including markets and real versus nominal
1-2 prices, circular flow diagram and the production
possibilities frontier.

Demand and Supply Chapter 2 Introduction to the concepts of demand and

supply, factors affecting them and market
3-4 equilibrium.

Elasticity of Demand and Chapter 2 Explanation of elasticity of demand and supply,

5-6 Supply a discussion of the factors affecting them.

Consumer Choice Chapter 3 An examination of consumer preferences, their

7-8 budget constraints and the concept of marginal
utility.
Individual and Market Chapter 4 An introduction to income and substitution
9-10 Demand effects and to consumer surplus.

Production Costs Chapter 6 & 7 Analysis of the relationship between total,

average and marginal costs of production. A
11-12 discussion on the short and long term costs for
firms.

13-14 Profit Maximization & Perfect Chapter 8 An analysis of the conditions determining
Competition perfect competition, profit maximizing output,
short and long run supply curves, individual and
market demand curves.

15 Review Session

16 Midterm Exam

17-18 Analysis of Competitive Chapter 9 Introduction to producers surplus, the concepts

Markets of market intervention, price ceiling and floors,
and distortions of the free market.

19-21 Market Power: Monopoly Chapter 10 & 11 A discussion of price determination and output
decisions under monopoly. Introduction to price
discrimination in its various forms.

22-23 Monopolistic Competition Chapter 12 A discussion on monopolistic competition

including the output decision, product

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differentiation and innovation.

Oligopoly Chapter 12 An analysis of marginal cost and marginal

24-25 revenue under oligopoly.

Game Theory Chapter 13 A brief Introduction to game theory and

26-27 strategic behavior, including dominant strategy
and Nash Equilibrium.

28 Review

Textbook(s)/Supplementary Readings
Textbook:
Microeconomics by Robert S. Pindyk, Daniel L. Rubinfeld and Prem L. Mehta (8 th Edition)