Prof.

Myung-Hoon Lee
Microe conomic
BEP4 06 lmh@korea.ac.kr(소문자엘엠에이치)
s 016-811-1514
Prof. Myung-Hoon Lee
Microe conomic
Fall, 2009 lmh@korea.ac.kr(소문자엘엠에이치)
s 016-811-1514

Economics is a study of economic activities of people, i.e., households,

businesses, and the government. The objective of studying economics is to
secure the "right" decision-making by choosing the right quantities of such
variables as production/consumption of commodities and offer/use of
resources. The definition of "right" varies on whose viewpoint we look at it.
From the viewpoint of the whole nation, the quantities that bring about the
maximum level of social welfare are right. When this viewpoint is taken,
economics is called macroeconomics. From the viewpoint of each individual
household or business, the quantities that bring about the maximum level
Course
of utility or profit are right. When this viewpoint is taken, economics is
Profile called microeconomics. Both microeconomics and macroeconomics look at
the same stuff, i.e., economic activities of people. The former looks at them
through the microscopes, and the latter through the telescopes.
In microeconomics, what makes the economist's job intriguing is the fact
that the strategy of individual economic subjects(household or business) to
maximize his utility or her profit is not independent of, but is dependent on,
other individual subjects' behaviors. We had better understand, therefore,
the market where many economic subjects' decision-makings meet and
interact with each other.

In sum, then, in this course of microeconomics we focus on the process in

which individual economic subjects maximize their material greeds in the
boundary of various fashions of markets. The process may be itemized as
follows:
(1) How a household maximizes his utility when commodity prices are given.
(2) How the commodity market demand behaves.
Course (3) How a business maximizes her profit when commodity prices are given.
Objectiv (4) How the commodity market supply behaves.
es (5) How the price of commodity is determined in the commodity market.
(6) How a household maximizes his utility when resource prices are given.
(7) How the resource market supply behaves.
(8) How a business maximizes her profit when resource prices are given.
(9) How the resource market demand behaves.
(10) How the price of resource is determined in the resource market.
(11) Market Success? What can the Government do when the market fails?

Theory and Application of INTERMEDIATE MICROECONOMICS

Textbook written by W. Nicholson and C. Snyder (10th edition)
Referenc MICROECONOMICS
e written by D. Besanko and R. Braeutigam (3rd edition)

My Book (AutoEconoGraphy)
Each student is encouraged to electronically "publish" a book of her/his own
by the semester's end. The manuscript, written in English, is required to
closely follow the organization of the course lectures. That is, you may
consider it as an annotated and/or paraphrased lecture note. The student is
to submit (1) the manuscript's computer file to the professor and (2) a
Term
printed copy, non-returnable, to the teaching assistant or the department
Project office. The deadline of submission is the end of the week right after the final
exam. A hard-cover printed copy is encouraged but not required. The
manuscript has to start with a brief introduction of the author, a preface, and
a list of contents. Acknowledgements and/or dedications are more than
welcome to be stated. One may like to include the author's photos, snaps or
formal.

Midterm Exam 30%

Final Exam 40%
Grading My Book (AutoEconoGraphy) 20%
Attendance 10%

C L A S S S C H E D U L E
Referen
Week Period Contents Textbook
ce
1 09/01 ~ 09/03 Review of Microeconomics
2 09/08 ~ 09/10 Economic Models Chapter 1
3 09/15 ~ 09/17 Utility and Choice Chapter 2
4 09/22 ~ 09/24 Utility Maximization Chapter 3
5 09/29 ~ 10/01 Behavior of Market Demand Chapter 4
6 10/06 ~ 10/08 Production Chapter 7
7 10/13 ~ 10/15 Costs Chapter 8
8 10/20 ~ 10/22 Mid-Term Test
9 10/27 ~ 10/29 Profit Maximization Chapter 9
10 11/03 ~ 11/05 Behavior of Market Supply Chapter 9
Determination of Commodity Price
11 11/10 ~ 11/12 Chapter 10
(When many businesses exist)
Determination of Commodity Price Chapter 13
12 11/17 ~ 11/19
(When one or a few businesses exist) Chapter 14
Determination of Resource Price
13 11/24 ~ 11/26 Chapter 15
(Resource=Labor)
Determination of Resource Price
14 12/01 ~ 12/03 Chapter 16
(Resource=Capital)
 Market Success or Market Failure
15 12/08 ~ 12/10 Chapter 18
(Externalities and Public Goods)
16 12/15 ~ 12/17 Final Test