McMaster University, Department of Economics, ECON 2Z03 C02

ECON 2Z03: INTERMEDIATE MICROECONOMICS I

C02, Summer 2022

Instructor: Dr. Zhen He Email: hez13@mcmaster.ca

In-person Lecture: Monday & Wednesday 9:00 am -12:00 pm, in KTH B135

Office Hours (Virtual):

➢ Instructor: Friday 2: 00 pm - 3: 00 pm

➢ T.A.: T.B.A.

CONTENTS
Course Description .................................................................................................................... 2
Prerequisites .............................................................................................................................. 3
Course Objectives...................................................................................................................... 3
Course Materials and Texts ....................................................................................................... 3
Avenue to Learn......................................................................................................................... 3
Course Structure ........................................................................................................................ 4
Course Evaluation – Overview ................................................................................................... 4
Course Evaluation – Details ....................................................................................................... 4
Online Quizzes – Avenue (15%): ........................................................................................... 4
Quiz 1 (5%), available 9am Jul 2, Sat. – 9pm Jul 3, Sun. ....................................................... 4
Quiz 2 (5%), available 9am Jul 9, Sat. – 9pm Jul 10, Sun. ..................................................... 4
Quiz 3 (5%), available 9am Jul 30, Sat. – 9pm Jul 31, Sun. ................................................... 4
Midterm (30%), 9:00am – 10:20am, July 13th, 2022 (Wednesday, in class) ............................ 4
Final Exam (55%), 9:00am – 11:00am, August 3rd, 2022 (Wednesday, in class) .................... 5
Course Policies .......................................................................................................................... 5
Grades ................................................................................................................................... 5
Grade Adjustment Techniques ............................................................................................... 5
Absences, Missed Work, Illness (MSAF) ................................................................................ 5
Calculators ............................................................................................................................. 5
University Policies ...................................................................................................................... 6

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Academic Integrity.................................................................................................................. 6
Authenticity / Plagiarism Detection ......................................................................................... 6
Courses with an On-Line Element .......................................................................................... 6
Conduct Expectations ............................................................................................................ 7
Academic Accommodation of Students with Disabilities ......................................................... 7
Academic Accommodation for Religious, Indigenous and Spiritual Observances ................... 7
Copyright and Recording........................................................................................................ 7
Extreme Circumstances ......................................................................................................... 8
Faculty of Social Sciences E-mail Communication Policy ....................................................... 8
Students Registered with SAS ............................................................................................... 8
Course Modification ............................................................................................................... 8
Course Content .......................................................................................................................... 8

ATTENTION:
Due to the uncertainty of the current pandemic situation, some details and deadlines regarding
course content and assessments in the published course outline may be changed. Please check
Avenue to Learn for the most up-to-date information for this course. The course outline on Avenue
to Learn will supersede previously published outlines until published course outlines are updated.

COURSE DESCRIPTION
Welcome to Econ2Z03! In this course we will develop tools and methods of microeconomic
analysis beyond those introduced in Introductory Microeconomics. We will examine demand and
supply, consumer theory, theory of firm and production, price and output determination under
competition and monopoly, and market power analysis. The theoretical presentation of the
material will be complemented with graphical illustrations and numerical examples.

The primary goal is to get you to think like an economist!

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 McMaster University, Department of Economics, ECON 2Z03 C02

PREREQUISITES
ECON 1B03 (or ARTSSCI 2E03); and credit or registration in one of MATH 1A03, 1LS3, or 1M03
Antirequisite(s): ECON 2G03/2X03

COURSE OBJECTIVES
By the end of this course, I am confident and hopeful that you will be able to:
• apply elements of microeconomic theory to explain how consumers and producers make
rational decisions
• describe the fundamental features of two market structures: perfect competition and
monopoly
• apply theoretical understanding to problems of consumer choice, production and costs
• use basic calculus to solve optimization problems faced by economic agents
• use applied economic techniques to analyze real-world microeconomic phenomena and
to evaluate issues of microeconomic policy

COURSE MATERIALS AND TEXTS

• Pindyck, Robert S. and Daniel L. Rubinfeld, Microeconomics, 9th edition, published by
Pearson/Prentice Hall, 2018.

• Supplements: MyLab (Optional)

AVENUE TO LEARN
Course materials (e.g. course outline, lecture slides, announcements, etc.) will be posted on the
Avenue to Learn website http://avenue.mcmaster.ca
The Avenue site is down occasionally. Save the course materials to your computer as soon as
they are posted. You are responsible for making yourself aware of any changes made to the
course by checking Avenue daily.
Students should be aware that, when they access the electronic components of this course,
private information such as first and last names, user names for the McMaster e-mail accounts,
and program affiliation may become apparent to all other students in the same course. The
available information is dependent on the technology used. Continuation in this course will be
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 McMaster University, Department of Economics, ECON 2Z03 C02

deemed consent to this disclosure. If you have any questions or concerns about such disclosure
please discuss this with the course instructor.

COURSE STRUCTURE
This course will be offered in person. Instructor and T.A. office hours will be held virtually using
Zoom. The Zoom meeting information will be posted on avenue.

COURSE EVALUATION – OVERVIEW

1. Individual Quizzes (3) – 15% (5% each)
2. Midterm - 30%
3. Final Exam - 55%

COURSE EVALUATION – DETAILS

Online Quizzes – Avenue (15%):

• Online quizzes are scheduled during specific weeks as indicated on the course outline.
For those weeks, quizzes will be available from 9:00 am on Saturday until 9:00pm on
Sunday. You may submit the quiz anytime in the timeframe.
• Each quiz consists of 15 questions and must be completed in 30 minutes.
• Detailed instructions will be available on avenue.

Quiz 1 (5%), available 9am Jul 2, Sat. – 9pm Jul 3, Sun.

Quiz 2 (5%), available 9am Jul 9, Sat. – 9pm Jul 10, Sun.
Quiz 3 (5%), available 9am Jul 30, Sat. – 9pm Jul 31, Sun.

If you miss a quiz, you must submit the MSAF within two days of the missed assessment. After
having submitted an MSAF, the weight will be transferred to your final exam.

Midterm (30%), 9:00am – 10:20am, July 13th, 2022 (Wednesday, in class)

There are two types of MSAF. You cannot use the Self-Report (Type A) for a missed midterm as
it is worth 30% toward your final grade. If you miss the midterm for legitimate reason and have
appropriate documentation (e.g., medical documentation), you can submit the Administrative
Report (Type B). The request must be submitted within two days of the missed assessment. After
having submitted an MSAF, the weight will be transferred to your final exam.

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Final Exam (55%), 9:00am – 11:00am, August 3rd, 2022 (Wednesday, in class)
The final exam is cumulative. Final exam marks will be posted on Avenue. Only the Registrar’s
Office can issue final letter grades for this course. Please visit the following website for details:
http://registrar.mcmaster.ca/exams/requirements/
Please note: travel plans are NOT a sufficient reason to have a final exam deferred.
The Deferred Exam Policy is listed on the following website at:
http://registrar.mcmaster.ca/exams/deferred/

COURSE POLICIES
Grades
Grades will be based on the McMaster University grading scale:

MARK GRADE
90-100 A+
85-90 A
80-84 A-
77-79 B+
73-76 B
70-72 B-
67-69 C+
63-66 C
60-62 C-
57-59 D+
53-56 D
50-52 D-
0-49 F

Grade Adjustment Techniques

I reserve the right to adjust marks upwards in order to standardize the median score. Marks will
never be adjusted down for this procedure.

Absences, Missed Work, Illness (MSAF)

McMaster Student Absence Form (MSAF): In the event of an absence for medical or other
reasons, students should review and follow the Academic Regulation in the Undergraduate
Calendar “Requests for Relief for Missed Academic Term Work”.
Calculators
Use of Casio FX-991 MS or MS Plus calculator only is allowed.

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UNIVERSITY POLICIES
Academic Integrity
You are expected to exhibit honesty and use ethical behavior in all aspects of the learning
process. Academic credentials you earn are rooted in principles of honesty and academic
integrity. It is your responsibility to understand what constitutes academic dishonesty.
Academic dishonesty is to knowingly act or fail to act in a way that results or could result in
unearned academic credit or advantage. This behavior can result in serious consequences, e.g.
the grade of zero on an assignment, loss of credit with a notation on the transcript (notation reads:
“Grade of F assigned for academic dishonesty”), and/or suspension or expulsion from the
university. For information on the various types of academic dishonesty please refer to the
Academic Integrity Policy, located at https://secretariat.mcmaster.ca/university-policies-
procedures- guidelines/
The following illustrates only three forms of academic dishonesty:
1. Plagiarism, e.g. the submission of work that is not one’s own or for which credit has been
obtained.
2. Improper collaboration in group work.
3. Copying or using unauthorized aids in tests and examinations.

Authenticity / Plagiarism Detection

Some courses may use a web-based service (Turnitin.com) to reveal authenticity and
ownership of student submitted work. For courses using such software, students will be expected
to submit their work electronically either directly to Turnitin.com or via an online learning platform
(e.g. A2L, etc.) using plagiarism detection (a service supported by Turnitin.com) so it can be
checked for academic dishonesty.

Students who do not wish their work to be submitted through the plagiarism detection software
must inform the Instructor before the assignment is due. No penalty will be assigned to a student
who does not submit work to the plagiarism detection software. All submitted work is subject to
normal verification that standards of academic integrity have been upheld (e.g., on-line search,
other software, etc.). For more details about McMaster’s use of Turnitin.com please go to
www.mcmaster.ca/academicintegrity.

Courses with an On-Line Element

Some courses may use on-line elements (e.g. e-mail, Avenue to Learn (A2L), LearnLink, web
pages, capa, Moodle, ThinkingCap, etc.). Students should be aware that, when they access the
electronic components of a course using these elements, private information such as first and
last names, user names for the McMaster e-mail accounts, and program affiliation may become
apparent to all other students in the same course. The available information is dependent on the
technology used. Continuation in a course that uses on-line elements will be deemed consent to
this disclosure. If you have any questions or concerns about such disclosure please discuss this
with the course instructor.

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Conduct Expectations
As a McMaster student, you have the right to experience, and the responsibility to
demonstrate, respectful and dignified interactions within all of our living, learning and working
communities. These expectations are described in the Code of Student Rights &
Responsibilities (the “Code”). All students share the responsibility of maintaining a positive
environment for the academic and personal growth of all McMaster community members,
whether in person or online.
It is essential that students be mindful of their interactions online, as the Code remains in effect
in virtual learning environments. The Code applies to any interactions that adversely affect,
disrupt, or interfere with reasonable participation in University activities. Student disruptions or
behaviours that interfere with university functions on online platforms (e.g. use of Avenue 2
Learn, WebEx or Zoom for delivery), will be taken very seriously and will be investigated.
Outcomes may include restriction or removal of the involved students’ access to these
platforms.

Academic Accommodation of Students with Disabilities

Students with disabilities who require academic accommodation must contact Student
Accessibility Services (SAS) at 905-525-9140 ext. 28652 or sas@mcmaster.ca to make
arrangements with a Program Coordinator. For further information, consult McMaster
University’s Academic Accommodation of Students with Disabilities policy.

Academic Accommodation for Religious, Indigenous and Spiritual Observances

Students requiring academic accommodation based on religious, indigenous or spiritual
observances should follow the procedures set out in the RISO policy. Students should submit
their request to their Faculty Office normally within 10 working days of the beginning of term
in which they anticipate a need for accommodation or to the Registrar's Office prior to their
examinations. Students should also contact their instructors as soon as possible to make
alternative arrangements for classes, assignments, and tests.

Copyright and Recording

Students are advised that lectures, demonstrations, performances, and any other course
material provided by an instructor include copyright protected works. The Copyright Act and
copyright law protect every original literary, dramatic, musical and artistic work, including
lectures by University instructors
The recording of lectures, tutorials, or other methods of instruction may occur during a course.
Recording may be done by either the instructor for the purpose of authorized distribution, or by
a student for the purpose of personal study. Students should be aware that their voice and/or
image may be recorded by others during the class. Please speak with the instructor if this is a
concern for you.

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Extreme Circumstances
The University reserves the right to change the dates and deadlines for any or all courses in
extreme circumstances (e.g., severe weather, labour disruptions, etc.). Changes will be
communicated through regular McMaster communication channels, such as McMaster Daily
News, A2L and/or McMaster email.

Faculty of Social Sciences E-mail Communication Policy

Effective September 1, 2010, it is the policy of the Faculty of Social Sciences that all e-mail
communication sent from students to instructors (including TAs), and from students to staff, must
originate from the student’s own McMaster University e-mail account. This policy protects
confidentiality and confirms the identity of the student. It is the student’s responsibility to ensure
that communication is sent to the university from a McMaster account. If an instructor becomes
aware that a communication has come from an alternate address, the instructor may not reply at
his or her discretion.
Put “ECON 2Z03” in the subject line and include your full name and student ID in the message.

Students Registered with SAS

Students registered with SAS please contact the instructor.

Course Modification
The instructor and university reserve the right to modify elements of the course during the term.
The university may change the dates and deadlines for any or all courses in extreme
circumstances. If either type of modification becomes necessary, reasonable notice and
communication with the students will be given with explanation and the opportunity to comment
on changes. It is the responsibility of the student to check his/her McMaster email and course
websites weekly during the term and to note any changes.

COURSE CONTENT

Category Topic Chapter

Introduction The Basics of Supply and Demand Ch. 2: 2.1 to 2.5, 2.7
Consumer Behavior Ch. 3: 3.1 to 3.5
Consumer Theory Individual and Market Demand Ch. 4: 4.1 to 4.5
Uncertainty and Consumer Behavior Ch. 5: 5.1 to 5.3
Production Ch. 6
Producer Behavior
The Cost of Production Ch. 7: 7.1 to 7.5

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Profit Maximization and Competitive

Ch. 8
Perfect Competition Supply
The Analysis of Competitive Markets Ch. 9: 9.1 to 9.4, 9.6
Market Power: Monopoly &
Ch. 10: 10.1 to 10.6
Monopsony
Market Power
Ch. 11*: 11.1 to 11.4
Pricing with Market Power*
(optional)

Class Schedule and Due Dates:

Week Topic Assessments Due Date

Supply and Demand (Ch2)

1
Consumer Behavior (Ch3)

Individual & Market Demand (Ch4)

2 Quiz 1 (Ch2,3,4) Jul 3, Sun.
Uncertainty & Consumer Behavior (Ch5)

Production (Ch6)
3 Quiz 2 (Ch5,6) Jul 10, Sun.
The Cost of Production (Ch7)

Midterm
4 Remainder, review and Midterm Jul 13, Wed.
(Ch2-7)

Profit Maximization & Competitive Supply (Ch8)

5
The Analysis of Competitive Markets (Ch9)

6 Market Power: Monopoly & Monopsony (Ch10) Quiz 3 (Ch8,9) Jul 31, Sun.

Final Exam
7 Review and Final Exam Aug 3, Wed.
(cumulative)

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