Lahore University of Management Sciences

MECO 111 Principles of Microeconomics

Fall Semester 2015
Instructor Syed Zahid Ali
Room No. 247 Main Building
Office Hours TBA
Email szahid@lums.edu.pk
Telephone 8074
Secretary/TA Khalid 8223
TA Office Hours TBA
Course URL (if any) TBA

COURSE BASICS
Credit Hours 3 Cus
Lecture(s) 2 Per Week 90 minutes
Recitation/Lab (per week) Nbr of Lec(s) Per Week Duration
Tutorial (per week) 2 Per Week 60 minutes

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

COURSE DESCRIPTION
This course focuses upon basic microeconomic concepts and their implications for individuals and business 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 ,efficient allocation of scarce resources and game theory.

COURSE PREREQUISITE(S)

None

COURSE LEARNING OUTCOMES (CLO)

Upon successful completion of the course, students should be able to:

1. Develop an understanding of basic microeconomic concepts and their application to real world situations.
2. Identify core microeconomic issues related to business firms and their behavior under different market
conditions.
3. Comprehend the benefits of market efficiency in resource allocation.

Moreover, students should also learn to:

4. Work independently and in teams (for group project)

5. Evaluate critically and apply economic models to solve real world problems.
 Lahore University of Management Sciences
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

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
Goal 4 Application of Information
Technology
Goal 5 Teamwork in Diverse and
Multicultural Environments
Goal 6 Understanding Organizational
Ecosystems
Goal 7 (a) Program Specific Knowledge
and Understanding
Goal 7 (b) Understanding the science
behind the decision-making process
COURSE LEARNING OBJECTIVES (CLO) COURSE ASSESSMENT ITEM
Minor goal: Operationalized through class CP,Project write up & presentation
participation and group project (CLO#4)
Minor goal: Application of microeconomic Quizzes and exams
principles in real world scenario (CLO # 1,2
& 5)
Minor goal: Opertioalized through Project writeup and presentation
prepration of group project reports and
presentations (CLO#4)
Minor Goal: Students have to work in Group project
random groups for project (CLO#4)
Major Goal: Comprehensive coverage of CP, quizzes and exams
topics in microeconomics (CLO# 1- 5)
NA
 Lahore University of Management Sciences
GRADING BREAKUP AND POLICY

Attendance and CP: 10%

Quiz(s): (3 of 4) 20% (4 announced quizzes. Lowest one will be dropped)
Midterm Examination: 30%
Assignments: 10%
Final Examination: 30%

Late comers will be marked absent.

Regular attendance and class participation is vital for better understanding of course. There will be no penalty for first
three absences. However, up to five absences, there will be 1% reduction in CP. After five absences it will result in 2%
reduction in CP for each marginal absence. After 8 absences your possibility of continuing the course will be reconsidered.

EXAMINATION DETAIL

Midterm
Exam Yes

Final Exam Yes

COURSE OVERVIEW
RECOMMENDED SESSION OUTCOME(S)
LECTURE TOPICS
READINGS (STUDENTS WILL BE ABLE TO )

Introduction to Microeconomics Chapter 1,2 Demostarte basic difference between

1-2
macroeconomic & microeconomic concepts.Circular
Flow Diagram and Production Possibility Frontier.
Understand the concepts of demand and supply,
3-4-5
Basics of Demand and Supply Chapter 4 factors affecting them and market equilibrium.
Elasticity and its Chapter 5 Calculate the elasticity of demand and supply and
6-7
application understand the factors affecting them.
Demand Estimation To be delivered later Comprehend the practical aspects of demand
8-9
estimation for business firms.
Supply and Demand: Chapter 6 Demonstrate the concepts of market intervention,
10-11 Implications for Government price ceiling and floors and distortions of free market.
Polices
Consumers, Producers and the Chapter 7 Compute consumer surplus and producer surplus and
12-13 Efficiency of Markets understand the concepts of market efficiency and
market failure.
Cost of Production Chapter 13 Analyze the relationship between total, average and
marginal concepts of cost and product.
14-15
Discuss the short term and the long term cost
conditions for business firms.
 Lahore University of Management Sciences
16 Midterm
Chapter 14 Understand the characteristics of perfect
17-18 Firms in Competitive Markets competition, profit maximizing output, short run
supply curve, individual and market demand curves.
Monopoly and Price Chapter 15 Explain the characteristics of monopoly, price
Discrimination determination and output decision under monopoly.
19-20
Demonstrate the concept of price discrimination and
its different forms.
Monopolistic Competition Chapter 17 Discuss monopolistic competitions characteristics
and output decision.
21 Comprehnd the importance of product
differentiation and innovation under monopolistic
competition.
Oligopoly Chapter 16 Explain characteristics of OIigopoly and relationship
between marginal cost and marginal revenue of
22-23-24
oligopoly.
Describe different models of oligopoly.
Game Theory To be delivered later Appreciate the concepts of game theory and strategic
25-26-27 behavior and role of dominant strategy and a Nash
Equilibrium.
28 Review

TEXTBOOK(S)/SUPPLEMENTARY READINGS

TextBook
Principles of Microeconomics(6th Edition) by N.Gregory Mankiw

Supplementary Readings
Managerial Economics (5th Ed) by Dominick Salvatore
Microeconomics(7th Ed) by R.S. Pindyck, D.L. Rubinfeld & P.L.Mehta

Small case studies and handout will be provided throughout the course as required.