Microeconomics for MBA Students

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” It is not from the benevolence of the butcher, or the baker that we expect our dinner, but from their regard to their own interest. “

Course Description

The aim of the course is to introduce students to the most essential topics in microeconomics. One of the main objectives of this course is to challenge students’ view on the economy and economic agent’s behavior. Students should acquire a thorough understanding of economic theory relevant to the topics covered. They also are introduced to the managerial issues. Topics include consumer and firm behavior, demand and supply, market structure, market failure, risk and information.

Lectures

Saturday & Monday 8:00 – 9:30; Room 7

Office Hours

Room 118; Saturday 15:00 – 16:00 or by appointment (email: ffatemi@sharif.edu)

Evaluation

The evaluation of the course is based on quizzes (15%), mid-term exam (40%),

final exam (45%).

Quizzes: The schedule will be agreed on the first class.

Mid-term exam: Wed 05/09/1393

Final Exam: Sat 27/10/1393 @ 9am.

Textbook

For this course we use two textbooks. One covers the theory and the other mostly covers the managerial issues. The main textbooks for the course are:
Begg, David, Stanley Fischer & Rudiger Dornbusch (BFD). Economics; McGrow-Hill Education.
McKenzie, Richard B. & Dwight R. Lee (ML). Microeconomics for MBAs, The Economic Way of Thinking for Managers; Cambridge University Press.

Other References

We also use the following textbooks for some topics and the problem sets (some other papers and books might be added to the list later in the term):
Mankiw, N. Gregory. Principles of Economics; Harcourt College Publishers.
Varian, Hal. Intermediate Microeconomics, A Modern Approach; W. W. Norton and Company.

Course Outline

Following is a list of the topics we intend to cover in this course alongside the textbook chapters for each topic. There is a possibility that not all the material in some chapters of textbooks will be covered, which will be announced in lectures accordingly. On the other hand, some other text or notes might be used for some of the topics which we intend to cover in greater details.

- Introduction; What is Microeconomics? Preliminary Definitions (BFG: Ch. 1 and 2 & ML: Ch. 1)
– Competitive Markets; Demand and Supply (BFG: Ch. 3 & ML: Ch. 2)
– Elasticities of Demand and Supply (BFG: Ch. 4 )
– Consumer Choice and Demand (BFG: Ch. 5 & ML: Ch. 3 and 7)
– Production: Firm Decision and Supply (BFG: Ch. 6 and 7 & ML: Ch. 6, 8, 9, and 10)
– Competition and Market Structure (Price Discrimination) (BFG: Ch. 8 and 9 & ML: Ch. 11 and 12)
– Game Theory
– Risk and Information (moral hazard and adverse selection) (BFG: Ch. 13 and 14)
– Market Failure and Government Role (BFG: Ch. 15 – 18 & ML: Ch. 5 and 14)
– Labor and Capital Market (BFG: Ch. 10 – 12 & ML: Ch. 4 and 13)

Lecture Notes

Problem Sets

Exam Samples

Past Exams Results