ADA University
School of Business

"The function of education is

to teach one to think
intensively and to think
critically... Intelligence plus
character – that is the goal of
true education."

Martin Luther King, Jr

 

Mission  
ADA   University's   School   of   Business   mission   is   to   prepare   global   and   socially   responsible  
graduates   through   excellence   in   applied   learning   and   scholarship   by   bringing   the   world   to  
Azerbaijan  and  Azerbaijan  to  the  world.  
 
Vision  
ADA   University's   School   of   Business   aspires   to   be   a   globally   recognized   premier   institution   in  
the  Caspian  Region  in  the  creation  and  transmission  of  knowledge  and  the  development  of  new  
generations   of   leaders,   driving   change   for   the   betterment   of   society.    
 
Through  our  innovative  and  entrepreneurial  spirit  we  foster  ethical  and  social  responsibility.    
 
COURSE  NAME:  Microeconomics   FACULTY     NAME:  Fatih  Yilmaz    
NUMBER:  ECON502   OFFICE:   S B337  
TIME:  Tue  and  Thu  at  10:30  –   E-­MAIL:  fyilmaz@ada.edu.az  
11:45   TEL:  (+994  12)  437  3235  ext.  362  
LOCATION:  SPIA116    
TERM:  Fall  2014    
  OFFICE  HOURS:  Wednesdays  10:00  –  12:00  
TEACHING  ASSISTANT:  ???   and  13:00  –  15:00  
 
 
  

Course  Description    
 
Microeconomics   can   be   thought   of   as   the   “grammar”   of   economics.   One   would   not  
think   of   seriously   studying   say   French   without   an   understanding   of   French  
grammar.   By   the   same   logic,   microeconomics   lies   at   the   heart   of   most   economic  
analysis.   It   is   the   foundation   for   understanding   public   policy,   international   trade,  
labor   economics,   industrial   organization,   natural   resource   and   environmental  
economics,  financial  economics  and  many  other  applied  fields.  The  terms,  tools  and  
concepts   introduced   in   microeconomics   provide   a   highly   useful   foundation   for  
understanding  economics  and  economic  policy.    
 
More   specifically,   the   course   first   develops   simple   graphical   and   mathematical  
models  of  decision-­‐making  by  individual  economic  agents:  consumers,  workers,  and  
businesses.   Students   will   be   able   to   analyze   interactions   among   these   agents   in  
product   and   factor   markets   using   concepts   of   market-­‐   demand,   supply,   and  
equilibrium.   Students   will   also   consider   the   efficiency   of   competitive   markets,  
describe  the  conditions  under  which  that  efficiency  may  arise,  and  examine  market  
failures  that  occur  when  those  conditions  are  not  present.    
 
Course  Objectives  and  Learning  Outcomes  
   
This  course  aims  to:    
1-­‐ Establish  some  of  the  central  concepts  of  economic  theory.    
2-­‐ Provides  a  simple  understanding  of  using  theory  in  policy  analysis.  
3-­‐ Lay  foundations  for  more  specialized  courses.    
 
After  completing  the  course,  students  should  be  able  to:    
1-­‐ Enrich   the   economic   theory   tool   kid   to   be   used   in   policy   analysis   of   many  
branches  of  economics  –  e.g.  tax  policy,  environmental  economics  policy,  etc.    
2-­‐ Conduct  simple  policy  analysis  –  e.g.  impact  of  tax  policy  change.  
3-­‐ Communicate  fluently  and  intelligently  about  economic  issues.    
 
Assessment  of  the  Learning  Objectives/Goals  
 
There   will   be   two   class   meetings   per   week   75   minutes   each,   in   which   I   will   give  
formal   presentation   of   theories   using   slides   and   notes.   Monolog   lectures   usually  
deliver   poor   learning   outcomes   and   I   will   therefore   encourage   students   to   raise  
their   questions,   opinions,   ideas,   discussions,   etc   on   the   topic.   In   fact,   I   would   post  
questions,   real   life   examples   to   motivate   a   debate   on   relevant   real   life   issues   related  
to  the  class.    
 
Assignments  are  important  part  of  learning  experience  especially  when  the  work  is  
done  in  groups  with  active  participation.  Group  discussions  are  very  effective  tools  
to  learn  and  think  through  new  concepts.  Assignment  questions  will  contain  theory  
questions   as   well   as   case   studies,   which   require   even   more   critical   thinking.   I   also  

  2  
  

plan   to   hold   optional   review   classes   after   assignments,   before   midterms   and   final  
exams  –  as  needed.    
 
Active   learning   also   requires   effective   communication   between   the   class   and   the  
instructor.  In  this  regard,  I  encourage  you  all  to  utilize  my  office  hours  or  make  an  
appointment   for   other   available   times,   for   your   questions.   You   can   always   email   me  
your   questions   and   I   will   also   make   my   self   available   for   your   questions   through  
social   media,   twitter.   The   twitter   account   for   this   course   is   @drfatihy   and   please,  
use  the  hashtag  #ECON502  for  this  course.    
 
It  is  very  fortunate  that  English  is  the  official  language  of  instruction  at  ADA,  which  
opens   doors   of   enormous   FREE   knowledge   resources   to   students.   I   will   introduce  
some   of   these   material   in   the   class.   I   will   only   speak   and   write   in   English   during  
classes   and   office   hours,   and   similarly   you   are   expected   to   ask   any   course   related   to  
class  ONLY  in  English.    
 
 
Communication    
 
I   will   regularly   post   course-­‐related   announcements   on   PowerCampus.   All  
course   documents   (syllabus,   assignments,   answer   keys,   extra   readings)   will   be  
uploaded   there.   You   are   responsible   to   check   the   site   regularly.   You   can   access  
PowerCampus  on  campus  or  off  campus  via  a  remote  connection.  You  can  still  email  
me  personally  or  tweet  me  from  @drfatihy  (using  the  hashtag  #ECON502)  should  
you  have  any  questions.  Link  for  PowerCampus  is:    
http://selfservice.ada.edu.az/Web/Home.aspx    
 
Prerequisite(s)    
 
There   are   no   prerequisites   for   this   course.   However,   principle   level  
knowledge  of  microeconomics  is  an  important  asset  as  the  ideas  covered  here  will  
be  familiar  to  ECON100.  The  treatment  here  will  be  more  technical,  focusing  more  
on  mathematical  interpretation  and  analysis.  High  school  level  algebra  will  be  used  
intensively  and  a  background  in  calculus  is  not  required  for  this  course.    
 
Required  Text    
 
Pindyck,  Robert  and  Daniel  Rubinfeld  (2009),  Microeconomics,  7th  edition,  Pearson  
Prentice  Hall.    
 
This   book   comes   with   a   Study   Guide   which   provides   an   alternative,   user-­‐friendly  
interpretation  of  the  topics,  with  a  number  of  practical  exercises.  Both  the  textbook  
and   the   Study   Guide   can   be   purchased   from   ADA   Bookstore   at   discounted   prices.  
Textbook  is  available  at  ADA  Bookstore.    
 

  3  
  

Additional  Resources  
Massachusetts  Institute  of  Technology  (MIT)  has  an  open  courseware  in  nearly  all  
courses  in  all  fields.  The  link  related  to  our  course  is:    
http://ocw.mit.edu/courses/economics/14-­‐01sc-­‐principles-­‐of-­‐microeconomics-­‐fal-­‐
2011/    
 
I  strongly  recommend  you  to  explore  the  lectures,  readings  and  assignments  in  this  
website.    
 
Course  Requirements  and  Grading  
 
Course  grades  will  be  based  on  the  following  components:    
• Attendance  .......................................................................10%    
• Assignments  (4X10%  each)......................................40%    
• Midterm  Exam.................................................................20%    
• Final  Exam  ........................................................................30%    
 
Grading  Scale    
 
I  will  follow  the  grading  scale  suggested  by  ADA  academic  regulations.  Your  course  
grade   is   the   sum   of   the   points   you   score   on   the   grading   components   above   each  
multiplied  by  their  respective  weights.    
 
A  =  94  –  100%   B-­‐  =  80  –  82%   D+  =  67  -­‐  69  %  
A-­‐  =  90  –  93%   C+  =  77  –  79%   D  =  60-­‐  66  %  
B+  =  87  –  89%   C  =  73  –  76%   F  =  0  -­‐  59%  
B  =  83  –  86%   C-­‐  =  70  -­‐  72%  
 
 
Attendance    
 
I   will   strictly   follow   ADA   Academic   Regulations   for   attendance   policy.   This   policy  
excuses   two   (2)   student   absences.   More   than   two   (2)   absences   will   lower   your  
attendance   grade.   For   each   additional   absence,   you   will   lose   one-­‐fourth   of   the  
attendance  grade,  which  makes  10  %  of  the  course  grade.  In  other  words,  you  will  
exhaust  all  of  the  10  percent  slated  for  attendance  after  four  (4)  absences  (on  top  of  
the   two   excused   ones).   Rare   exceptions   will   apply   only   in   extreme   and   objectively  
verifiable   circumstances   and   must   be   discussed   with   the   instructor   before   the  
occurrence.    
 
You  are  responsible  for  arriving  on  time  for  classes.  Late  arrival  results  in  disruption  
to   class   members   and   is   unfair   to   your   classmates   and   the   instructor.   That   said,   you  
have  to  arrive  class  before  attendance  sheet  returns  to  me  after  I  give  it  to  class  in  
order  not  to  be  counted  as  absent.    
 
 

  4  
  

Assignments    
 
Assignments   will   mostly   involve   in   solving   models,   evaluating   a   policy   change  
mathematically  and  will  also  require  you  to  interpret  the  result.  You  are  encouraged  
to   work   in   groups   and   you   can   submit   a   group   assignment.   A   group   can   only   be  
maximum  of  two  students  and  bigger  groups  (e.g.  3,4  or  more)  will  NOT  be  allowed.  
Both   group   members   will   get   the   same   grade   from   the   exam.   You   are   certainly  
allowed  to  work  on  your  own.  I  will  be  very  strict  in  terms  of  due  dates  and  times.  
After  5  pm  of  the  due  date  no  assignments  will  be  accepted.  So  please  plan  yourself  
ahead  of  time.    
 
Exams    
 
Midterm   and   final   exams   will   NOT   be   multiple-­‐choice   questions.   There   will   be  
true/false/uncertain,  short-­‐answers  (e.g.  conceptual)  and  long-­‐answer  (e.g.  solving  
a  model  and  interpreting  the  results)  questions.  The  Midterm  will  cover  about  half  
of  the  total  class  material.  The  final  exam  WILL  BE  comprehensive;  it  will  be  25  %  
from   midterm   material   and   75   %   from   the   final   exam   material.   All   exams   are   closed  
book  or  notes.  Only  non-­‐programmable  calculators  are  allowed.  No  make  up  exam  
will  be  given  except  extraordinary  circumstances.    
 
 
Tentative  Schedule  of  Classes,  Readings,  and  Assignments
 
Date   TOPIC   CHAPTER  
09-­‐Sep   Introduction  -­‐  Ten  Principle  of  Economics      
11-­‐Sep   Preliminaries   1  
16-­‐Sep   Supply  and  Demand     2  
18-­‐Sep   Consumer  Behaviour   3  
23-­‐Sep   Consumer  Behaviour   3  
25-­‐Sep   Individual  and  Market  Demand     4  
30-­‐Sep   Production     6  
02-­‐Oct   Production     6  
2-­October  -­  Assign#1  due  in  the  Class,  covers  ch  1,2,3  &  4  
07-­Oct   No  Class  -­  Gurban  Bayrami      
09-­‐Oct   Cost  of  Production     7  
14-­‐Oct   Profit  Maximization     8  
16-­‐Oct   Competitive  Markets  Analysis   9  
21-­‐Oct   Catch-­‐up  Review        
21-­  October-­Assign#2  due  in  the  Class,  covers  ch  6,7,8  &  9  
23-­Oct   Midterm  Exam  cover  ch  1-­9  
28-­‐Oct   General  Equilibrium  and  Economic  Efficiency   16  
30-­‐Oct   General  Equilibrium  and  Economic  Efficiency   16  
04-­Nov      
No  Class  -­  Fall  Break  
06-­Nov      

  5  
  

11-­‐Nov   Monopoly     10  
13-­‐Nov   Monopoly     10  
18-­‐Nov   Pricing  with  Market  Power   11  
20-­‐Nov   Pricing  with  Market  Power   11  
25-­‐Nov   Oligopoly     12  
25-­  November-­Assign#3  due  in  the  Class,  covers  ch  16,10  &  11    
27-­‐Nov   Monopolistic  Competition     12  
02-­‐Dec   Game  Theory   13  
04-­‐Dec   Game  Theory     13  
09-­‐Dec   Externalities  and  Public  Goods   18  
11-­‐Dec   Catch-­‐up  Review        
12-­  December-­Assign#4  due,  covers  ch  12,  13  &  18  
Final  Exam    

Late Assignments
 
All assignments are to be handed on time. You are expected to deliver a paper
copy of all assignments to the instructor at the designated due date and time.
Late assignments will not be accepted. Should you have any extraordinary
circumstances that impact the completion and delivery of your work, you are
expected to notify the instructor in advance of the due date.

Policy on Make-Ups

- Mid-terms and the final: do not miss them. There are no exceptions for those.
- Cases and project presentations are due on the dates announced and late
submission means no grade for them.
- Requests for make-ups may be granted only under exceptional
circumstances.
- Avoid requests for reasons of personal convenience;
- Any make-ups, if granted, must be taken prior to the next meeting of the
class.
- If you miss a deliverable without prior notice or arrangement, no grade (zero
grades) is automatically assigned to it.

Class discipline and Student Code of Conduct

- Please arrive on time to the class. Being late to class without a reason is no
respect to the instructor and student colleagues as it interprets the session.
- Do not eat food in class: please use lounge or other related areas.
- Cell phones, e-mails, and any possible other electronic devices must be
turned OFF while in class and during the test.

  6  
  

- Students are expected to talk about class topics and no other topics are to be
discussed.

Academic dishonesty
ADA University has no tolerance for acts of academic dishonesty. Honor Code of
ADA University defines the responsibilities of both students and faculty with
regard to academic dishonesty. By teaching this course, I have agreed to
observe the entire faculty responsibilities described in that document. By
enrolling in this class, you have agreed to observe all student responsibilities
described in that document. Academic dishonesty in this course includes copying
or collaborating during an exam, discussing or divulging the contents of an exam
with another student who will take the test, and use of homework solutions from
another students.

Disability policy
ADA University provides upon request appropriate academic accommodations
for qualified students with documented disabilities. Any student who feels s/he
may need an accommodation based on the impact of a disability should
notify the Office of Disability Services about his/her needs before the start of the
academic term. Please contact Mr. Elnur Eyvazov, Lead Coordinator of the
Office of Disability Services; Phone: 4373235/ext249; Email:
eeyvazov@ada.edu.az.
 
Instructor’s  Bio  
 
Dr.Yilmaz   received   his   PhD   in   Economics   from   University   of   Calgary   in   July   2014,  
where  he  had  taught  several  courses  in  microeconomic  and  macroeconomic  theory  
and   applied   econometrics.   His   research   is   specialized   in   public   economics,   applied  
econometrics   and   development   economics.   Beside   his   academic   accomplishments,  
he  has  been  working  as  a  consultant  for  the  Investment  Climate  Department  at  the  
World   Bank   Group,   where   his   main   duty   is   to   provide   rigorous   econometric  
research  on  various  taxation  policy  issues.  He  also  holds  an  MA  in  Economics  from  
Western   Illinois   University,   USA   (2007)   and   BA   in   Business   Administration   from  
Uludag   University,   Turkey   (2004).   He   is   married   with   one   sun.   He   enjoys   playing  
squash.   For   more   information   about   him,   please   visit   his   personal   website:  
https://sites.google.com/site/mrfatihyilmaz/about  
 
 
GOOD  LUCK  FOR  THE  SEMESTER!  
 
 
FY/mi  
2014-­‐August-­‐17  

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