ECS2220

ECONOMICS OF THE FIRM

 Your lecturer

Dr Sylvia Gottschalk (first name: Sylvia)

 PhD. Economics, specialised in quantitative
macroeconomics, mathematical modelling of the economy
for forecasting, credit risk modelling, and financial stability.
 Previous work in research institutes, e.g., National Institute
of Economic and Social Research (NIESR) which produces
a quarterly forecast of the UK and world economies.
 Publications on exchange rate risk, exchange rate volatility
and FDI, credit risk modelling.
 Your seminar tutor

Seyed Amir Khorasgani: Doctoral student at

Middlesex University.
Contact details: S.A.Khorasgani@mdx.ac.uk

Seminar timetable: as of 13th October, there is no

definitive seminar timetable. For this reason, the
first seminar of this module is optional. (week 2, 18th-
22nd October)
 Contact details

Room: W223, Williams building

Telephone: 020 8411 4348
E-mail: use OasisPlus e-mail for communications
regarding the course.
Office Hours: Friday 10.30-12.30
 Lecture time

Due to clashes in my timetable, during the Autumn

Term this lecture will start at 13:30.
In January lectures will start at 13:00.
 Brief outline of the course

 Business behaviour : production, cost, market share

maximisation, business strategies, small firm sector.
 Market power: pricing theories, regulation of market
power, game theory.
 Labour market issues: asymmetric information and
signalling.
 Course blocks

 Block 1: revision of producer theory (weeks 1-5)

 Block 2: alternative theories of the firm (weeks 7-10)
 Block 3: pricing theory (weeks 12-16)
 Block 4: labour market (weeks 18-20)
 Block 5: preparation for final exam (weeks 22-24)
 Assessment

Coursework’s weight: 40% of module grade

1. Mid-term tests: 20%
2. End-of-term tests:20%
Examination: 60% of module grade.
 Coursework details

2 mid-term tests: week 6, and week 17. 7-day

homework assignment to be uploaded onto
OasisPlus.
2 end-of-term tests: week 11 and week 21. Tests will
be 90 mins long and open book.
1. Each test will be structured like the final
examination.
2. Part 1 will contain 5 short-answer questions. All
must be answered.
3. Part 2 numerical problems and business case
studies (choose 1 out of 5 questions).
 Examination

2 hours long
2 parts: part 1 will have 5 compulsory short-answer
questions. Part 2 will have 5 questions, only 1 of
which must be chosen. Only 1 question will be
marked.
CLOSED BOOK.
Weight: 60% of module grade.
 Main textbooks

Sloman, J. and Hinde, K: Economics for business, (latest edition),

Prentice Hall.
Morgan, W., M. Katz, and H. Rosen (2009), Microeconomics, 2nd
European ed., McGrawHill.
Pindyck, R. and Rubinfeld, D. (2008) Microeconomics 7th ed., Prentice
Hall.Mandel, M.: Economics: The basics, MacGraw-Hill
Case, K. and Fair, R. : Principles of microeconomics, 9th ed. Pearson
international Edition.

NOTES:
An electronic copy of Case-Fair is available. Contact Amir for details.
You are required to buy Sloman-Hinde. Copies of relevant chapters of
Morgan et al. and Pindyck-Rubinfeld will be provided.
 Lectures and seminars

Seminars will begin in week two and run until the

final week of term.
Seminar questions are listed in the Module
Handbook.
A Seminar Handbook will be necessary for Block 3
and 4. A hard copy will be handed in week 5. An
electronic copy will be available on OasisPlus.
 Attendance

Attendance to lectures is strongly recommended.

All lecture slides will be available on OasisPlus the
day before the lecture. Revision slides will be
available on weeks 10 and 23.
Seminars are compulsory (except week 2’s
seminar), and attendance will be recorded.
 Open book vs closed book

In an open book exam you are allowed to use any

printed material you want to answer the exam.
In an closed book exam you are not allowed any
printed material.
An open book exam tests what you know. A closed
book exam tests whether you know what is in the
book.
 Missed assessments and resits

If you miss any of the coursework components, you

will be given a 0% grade.
resits must take place in August/September (29
Aug. to 11th September). If you miss the August
resits, you will fail the module.
If your grade at the end of week 24 is less than 40%,
you will have to resit in August/September.
All resits will be capped at the pass rate (40%)
 Autumn term lectures

Lecture 1 Revision: Business behaviour under perfect competition

Lecture 2 Revision: Costs
Lecture 3 Revision: Monopoly and Monopolistic Competition
Lecture 4 Revision: Oligopoly
Lecture 5 Revision: Oligopoly and strategic behaviour
Lecture 6 Reading Week and Mid-Term Test 1
Lecture 7 Test Feedback / Alternative theories of the firm
Lecture 8 Growth strategy
Lecture 9 Small firm sector
Lecture 10 Preparation for End-of-Term Test 1
 Spring Term lectures

Lecture 11 End-of-Term Test 1

Lecture 12 Test Feedback/ Pricing theory
Lecture 13 Pricing theory
Lecture 14 Monopoly
Lecture 15 Oligopoly, cartels, collusion
Lecture 16 Game theory and its applications to business strategy
Lecture 17 Reading Week and Mid-term Test 2
Lecture 18 Test Feedback / Labour market
Lecture 19 Labour markets, wages and industrial relations
Lecture 20 Asymmetric information and labour market signalling
Lecture 21 End-of-term test 2
Lecture 22 Preparation for final exam
Lecture 23 Preparation for final exam
Lecture 24 Preparation for final exam
 Block 1:

Main textbook: Case-Fair, Principles of

Microeconomics, 9th edition. Pearson
Electronic copies will be distributed by Amir
Chapters 6,8,13,14,15.
 Block 2

Main textbook: Sloman-Hinde

Chapters 13,14,15,16.
 Block 3

Main textbooks: Pindyck-Rubinfeld and Morgan et

al.
Chapters 11, 10,12,13 and 13,15,16
Alternative textbook: Sloman-Hinde
Chapter 17.
 Block 4

Main textbooks: all of them

Chapter 10 (C-F); chapter 17 (P-R); chapter 17 (M);
chapter 18 (S-H).
 Block 5

Mock test (lecture time)

Exam drill 1: part 1 (during seminars)
Exam drill 2: part 2 (during seminars)