EC340 MICROECONOMIC THEORY Course Syllabus - Dr. Steve Szeghi

Term
Fall 2026
Section
M1
Course Delivery
ln person­[FTF]
Class Program
Credits 4.00
The analysis of rational human behavior, particularly in specific markets affecting consumer and producer decision making. The role of the price mechanism in allocating scarce resources, and the role of competition, externalities, and public goods play in the determination of market efficiency.
Prerequisites

Meeting Times, Location, & Course Delivery Details

Meeting Days:
MWF
Meeting Times:
11:30 - 12:30
Location:
Bailey 309
Delivery Details

The Course is in person. The typical class will include some of the following: lectures, graphical demonstrations of basic economic ideas, theories, and applications, questions received and questions given to illicit responses from students, discussion of key ideas.

Course Description and Prerequisites: The analysis of rational human behavior, particularly in specific markets affecting consumer and producer decision making. The role of the price mechanism in allocating scarce resources, and the role of competition, externalities, and public goods play in the determination of market efficiency. Prereq's Principles of Economics; Micro EC 130

The course in Microeconomic Theory builds upon the tools of economic analysis

encountered in the Principles of Economics course. The student will be expected to

acquire a deeper understanding of the theory behind consumer and producer

decision making. The student will become familiar with the tools and techniques

of the economist, including graphical presentation of argument and rigorous

presentation of assumptions. The student will acquire a deeper appreciation of the

basic principles of economics, including rational calculation, opportunity cost,

substitutability of goods and resources, and the functioning of the price mechanism.

We will examine thoroughly, the conditions in which the price mechanism in the937

when it does not. Several cases of market failure will be examined such as

externalities, public goods, imperfect competition, and product differentiation.

In addition the course will reexamine the traditional case for efficiency from

the perspective of social justice. The student will come to a greater appreciation of

the tools, the techniques, and the discipline of thinking like an economist, as well

as the limitations thereof.

Contact Information

Instructor:
Dr. Steve Szeghi
Instructor Email:
steve_szeghi@wilmington.edu
Office Location:
Bailey 202
Phone Number
937-481-2387
Social Media
https://www.wilmington.edu/faculty/steve-szeghi
Office Hours:
Monday and Friday 2 - 4:30 (after 3:30 by appontment only)
Course Materials

Required Text: Price Theory and Applications, by Hershleifer, Glazer, & Hershleifer (any edition published 2007 or later)

Instructor's Course Objectives

Knowledge to be - types of economic systems

developed will include - when markets work well and when they do not

  • types of economic systems
  • when markets world well and when they don't

- rational calculation

- roles for government in the economy

- price mechanism

- surplus and shortage

- elasticity

- costs of production

- cost functions

- degrees of competition and models of market structure

- assumptions of models

- efficiency results of models

- the problem of public goods and externalities

- types of ownership, public and private

- is the distribution of income, wealth, and power just?

Skills: Critical thinking, exhibited in essay analysis, as applied to determination of prices,

changes in prices, resource allocation, and evaluation of the efficiency of various

types of markets. Ability to understand budget constraints and indifference curves.

Problem solving using graphical analysis, including being able to work with and

use the models of market structure. Calculation of elasticities, ability to use

cost, revenue, and production functions in determining profit maximizing behavior

An ability to recognize the weaknesses and limitation of a market economy, an ability

to weigh government policies which affect markets, employing the framework and

tools of economic science. Building values of peacemaking, social justice, respect for

the environment and appreciating how those values intersect economic principles.

Course Schedule

Definition of Weeks by Dates

Week One August 24 – 28th MWF

Week Two August 31, September 2,4 MWF

Week Three Holiday Labor Day Monday September 7, Class WF 9/9 & 9/11

Week Four September 14 – 18th MWF

Week Five September 21 – 25 MWF

Week Six September 28 – October 2 MWF

Week Seven October 5 – October 9 MWF

Week Eight October 12 – 16 MWF

Week Nine October 19 Monday Fall Break no class; Class on October 21, 23 WF

Week Ten October 26 – 30 MWF

Week Eleven November 2 – 6 MWF

Week Twelve November 9 – 13 MWF

Week Thirteen November 16 – 20 MWF

Week Fourteen Monday November 23 Class, W 25th and F 27th no class Thanksgiving Break

Week Fifteen November 30 – December 4th MWF

Week Sixteen December 7,9th Monday and Wednesday

Final Exam As scheduled by the time and place by the College

Subject to change during the semester. Adequate notice of changes will be given.

All Readings are from Herschleifer’s Price Theory and Applications

 

Week One, Class Schedule Fall 2026 Tentative

Thinking like an Economist, What is Economics, Comparative Economic Systems, The basic Economic functions, Normative vs Positive Economics

Read Chpts 1

Week Two,

Review of basic Supply and Demand

Read Chapter 2

Week Three,

Consumer Theory – mapping consumer preferences

Read chapter 3

Week Four

Consumer Theory – mapping budget constraints and their interaction with indifference curve, consumer optimization procedures

Read chapter 4

Week Five

Application of Consumer Theory, Price Elasticity of Demand, of Supply; Cross price elasticity, Income Elasticity, Decomposing Substitution and Income Effects of a Price change

Read chapter 5

Week Six,

Re read first 5 chapters, Applications and Review

 

Week Seven

Review and Applications First Test on Friday October 9

 

Week Eight

The Business Firm, X Efficiency, Short Run Cost Structure of Firms

Read Chapter 6 Long Run Cost Structure of the Firm

Continue Reading Chapter 6

Week Nine,

The firm and Industry in Perfect Competition

Read Chapter 7

 

Week Ten,

Monopoly

Read Chapter 8

Week Eleven,

Reread chapter 7 and 8, begin Perfect Competition and Monopoly compared

 

Week Twelve,

The special case of Natural Monopoly, Government Regulation, Other Complications with the standard comparison of Perfect Competition and Monopoly

Continue reading chapters 7 and 8

Week Thirteen,

Oligopoly, and Monopolistic Competition

Read Chapters 9,10,11

 

Week Fourteen,

Factor Markets Read Chapters 12, and 13

Labor Markets and Imperfect Competition, Market Failures

Read chapter 16,

Week 15, Monday TEST TWO Wednesday and Friday Thanksgiving Break

 

Week 16, Market Failure, Imperfect Competition and

What else can go wrong, Social injustice, government failure, Externalities and Public Goods

Read Chapter 17 and pay acute attention to handout

Final Exam in Bailey 309

Course Assignments

Assignments are in the Class schedule above but are repeated here.

All Readings are from Herschleifer’s Price Theory and Applications

Week One, Class Schedule Fall 2026 Tentative

Thinking like an Economist, What is Economics, Comparative Economic Systems, The basic Economic functions, Normative vs Positive Economics

Read Chpts 1

Week Two,

Review of basic Supply and Demand

Read Chapter 2

Week Three,

Consumer Theory – mapping consumer preferences

Read chapter 3

Week Four

Consumer Theory – mapping budget constraints and their interaction with indifference curve, consumer optimization procedures

Read chapter 4

Week Five

Application of Consumer Theory, Price Elasticity of Demand, of Supply; Cross price elasticity, Income Elasticity, Decomposing Substitution and Income Effects of a Price change

Read chapter 5

Week Six,

Re read first 5 chapters, Applications and Review

Week Seven

Review and Applications First Test on Friday October 9

Week Eight

The Business Firm, X Efficiency, Short Run Cost Structure of Firms

Read Chapter 6 Long Run Cost Structure of the Firm

Continue Reading Chapter 6

Week Nine,

The firm and Industry in Perfect Competition

Read Chapter 7

Week Ten,

Monopoly

Read Chapter 8

Week Eleven,

Reread chapter 7 and 8, begin Perfect Competition and Monopoly compared

Week Twelve,

The special case of Natural Monopoly, Government Regulation, Other Complications with the standard comparison of Perfect Competition and Monopoly

Continue reading chapters 7 and 8

Week Thirteen,

Oligopoly, and Monopolistic Competition

Read Chapters 9,10,11

Week Fourteen,

Factor Markets Read Chapters 12, and 13

Labor Markets and Imperfect Competition, Market Failures

Read chapter 16,

Week 15, Monday TEST TWO Wednesday and Friday Thanksgiving Break

Week 16, Market Failure, Imperfect Competition and

What else can go wrong, Social injustice, government failure, Externalities and Public Goods

Read Chapter 17 and pay acute attention to handout

Final Exam will be take home to be turned in electonically December 11 between 10:15 AM and 12:15

Course Final Exam
Friday December 11, 10:15 - 12: 15 ( This will be a take home to be turned in electonically at the time of the Final, not before and not after)
Evaluation of Work

The grading scale will be as follows:

There will be two tests plus the final exam. This will be what your course grade will be determined by. Each test plus the final will constitute 1/3 of your course grade

All tests plus the Final are subjectively graded. The Professor will use the plus minus system of grading. All levels of A indicate levels of Excellent Work. All levels of B indicate some degree of good work. All levels of C will idicate some degree of Average Work. Below a C minus is effectively a Failure, although the Professor can and will assign various degrees of Failure.

Instructor Course Policies

Instructor's Course Attendance Policy

This Professor does not take off points for absences be they excused or un-excused. In other words, there is no penalty for absences. However, this professor reserves the right to award students extra points on the basis of professional judgement. Students who have excess absences (more than 4 within a semester be they excused or un-excused) will become ineligible for these extra points at the discretion of the professor. Professional Judgement includes classroom attendance, punctuality, engagement in the course, displaying of interest, participation, giving the professor your undivided attention, et al.

If you must miss a class for any reason,you are responsible for all of the material that you missed. You will have to acquire the notes of another student who attended and then if you have specific questions about what you missed, you can then come and ask your professor. But do not ask your Professor to fill you in on what you have missed and do not ask the Professor if anything important happend during the class you missed. You are also responsible to find out any changes announced in class that you missed in regard to alterations in course schedule or dates for tests. S once again, you may ask another student who attended to borrow their notes, or otherwise acquire the missing material.You may also ask a fellow student to Facetime (or equivalent) you into a class that you can not attend. Do not call, email, or ask your Professor for what you missed. The Professor will not be providing a Zoom or Facetime or other option but you may arrange one yourself through a fellow student.

 

 

Instructor's Academic Integrity Policy

All tests and the final exam will be answered on paper with a pen. There will therefore be no opportunity to use A1, which the Professor expressly forbids.

Any manner of cheating on exams or tests will result in Failure on the exam, test, or assignment resulting in a grade of zero points and subsequently failure in the course. Cheating consists of using another students answers or thoughts during the time of the exam, the use of notes in any form not allowed by the Professor, communication in any form with other students or other individuals during the exam to discuss answers to questions on the exam.

You will take your tests and exams with pen and paper, no electronic aids such as cellphones or computers are permitted. The only exception would be if a student requires some sort of computer assistance due to a documented learning disability. There is no opportunity therefore to use artificial intelligence. Sorry you must rely on your own and only your own intelligence.

Any use of cellphones and any and all other electronic devices is prohibited during class, as is talking and non-verbal communication with classmates. The Professor needs your undivided attention during class time.

Americans with Disabilities Act: If you have a documented disability that requires accommodations, contact the Director of Accessibility and Disability Services at 937- 481-2444, Robinson Communication Center.

Institutional and Program-Level Policies

Final Exam Schedule
All exams will follow the Final Exam Schedule. Students scheduled to take three or more final examinations on one day may request to arrange their examination schedule, so no more than two exams occur on one day.
Requests for early or late exams are considered only under extreme circumstances. Prior to the exam period, the student must file a written request on the Early/Late Exam Form available in the Student One Stop Center, Academic Records, and on the WC portal. The form must be signed by the Instructor and the Academic Dean, approving the alternate exam time. This process must be completed prior to the scheduled exam period.

Undergraduate:  FA26 Final Exam Schedule    

 

Out-of-class Work Expectation

A minimum of 2 hours of out-of-class student work is expected for each hour of in-class time for traditional face-to-face courses. For online and hybrid courses, the combination of face-to-face time and out-of-class work should be equal to 3 hours per credit hour per week.

Instructional Course Delivery                                                                                                            

Definition of Courses

Academic Integrity Policy

The use of generative AI is prohibited except where expressly allowed in assignment instructions.

Academic Integrity Policy

Class Attendance Policy                              

Institutional Class Attendance Policy