LSP240 - Micro Economics - Theory & Practice

Outline info
Last revision date 2018-09-24 01:00:16.846
Last review date 2018-11-12 00:15:02.761

Subject Title
Micro Economics - Theory & Practice

Subject Description
This subject explains how prices are determined and resources allocated under different market forms and in diverse economic environments. It focuses on actual economic problems and develops the theoretical structure to analyze these problems. Careful consideration is given to "soft" factors which influence decision-making, including culture, economic legislation, and trade regulation.

Credit Status
One lower-level Liberal Studies elective credit.

Learning Outcomes
Upon successful completion of this subject the student will be able to:

  • Understand the basic economic concepts of scarcity and efficiency
  • Develop the production possibilities model to explain the efficiency in different economic systems and economic institutions
  • Analyze the market model in reference to demand, supply and determination of equilibrium prices
  • Evaluate and apply the concepts of demand, supply, and cross and income elasticities to maximize revenue
  • Appraise the concepts of consumer and producer surplus
  • Explain and assess government’s role in attaining the objective of social efficiency of markets
  • Establish the relationship between a firm’s output and costs in the short run and long run to derive a firm’s short run cost curves and long run average cost curve
  • Critically examine strategic approaches for maximizing profits using marginal analysis in four market structures
  • Contrast the short run and long run outcomes of profit maximizing and their impact on efficiencies in perfectly and imperfectly competitive markets
  • Develop strategic policies for price and output management in imperfectly competitive market structures, such as price discrimination, oligopolistic games, and policy options to regulate natural monopoly


Essential Employability Skills
Communicate clearly, concisely and correctly in the written, spoken and visual form that fulfils the purpose and meets the needs of the audience.

Respond to written, spoken, or visual messages in a manner that ensures effective communication.

Apply a systematic approach to solve problems.

Use a variety of thinking skills to anticipate and solve problems.

Locate, select, organize, and document information using appropriate technology and information systems.

Analyze, evaluate, and apply relevant information from a variety of sources.

Show respect for diverse opinions, values, belief systems, and contributions of others.

Interact with others in groups or teams in ways that contribute to effective working relationships and the achievement of goals.

Manage the use of time and other resources to complete projects.

Take responsibility for one's own actions, decisions, and consequences.

Academic Integrity
Seneca upholds a learning community that values academic integrity, honesty, fairness, trust, respect, responsibility and courage. These values enhance Seneca's commitment to deliver high-quality education and teaching excellence, while supporting a positive learning environment. Ensure that you are aware of Seneca's Academic Integrity Policy which can be found at: Review section 2 of the policy for details regarding approaches to supporting integrity. Section 2.3 and Appendix B of the policy describe various sanctions that can be applied, if there is suspected academic misconduct (e.g., contract cheating, cheating, falsification, impersonation or plagiarism).

Please visit the Academic Integrity website to understand and learn more about how to prepare and submit work so that it supports academic integrity, and to avoid academic misconduct.

All students and employees have the right to study and work in an environment that is free from discrimination and/or harassment. Language or activities that defeat this objective violate the College Policy on Discrimination/Harassment and shall not be tolerated. Information and assistance are available from the Student Conduct Office at

Accommodation for Students with Disabilities
The College will provide reasonable accommodation to students with disabilities in order to promote academic success. If you require accommodation, contact the Counselling and Accessibility Services Office at ext. 22900 to initiate the process for documenting, assessing and implementing your individual accommodation needs.

Successful completion of ENG106 or its equivalent.

Topic Outline

  • Introduction to Economics
  • How Markets Work
  • Household Choices
  • Firms and Markets
  • Market Failure and Government
  • Factor Markets and Inequality
  • Trading with the World

Mode of Instruction
Your instructor will use a variety of appropriate teaching modes and techniques, such as the following:  lecture, question and answer, tutorials, classroom discussion, group work, individual and/or group presentation, computer-aided instruction, independent study, case studies, consultation, etc.

Prescribed Texts

Reference Material
All students are required to use the following Research Guide for their assignments:
Seneca Libraries. Guide to Research & Citation MLA Style. 4th ed. [Toronto]: Seneca Libraries. 2011. Print.

Required Supplies

Promotion Policy

Grading Policy
A+ 90%  to  100%
A 80%  to  89%
B+ 75%  to  79%
B 70%  to  74%
C+ 65%  to  69%
C 60%  to  64%
D+ 55%  to  59%
D 50%  to  54%
F 0%    to  49% (Not a Pass)
EXC Excellent
SAT Satisfactory
UNSAT Unsatisfactory

For further information, see a copy of the Academic Policy, available online ( or at Seneca's Registrar's Offices.

Modes of Evaluation
Assignments are due on the dates specified. Should extenuating circumstances arise, please contact your instructor prior to the assignment due date so that an appropriate course of action can be established. Late assignments may be subject to a penalty of up to 10% per week and will not generally be accepted beyond two weeks from the due date.

In cases of cheating or plagiarism, the College Academic Policy will prevail. Please ensure that all assignments and reports are properly documented.

Students are referred to the following website for Seneca College Library style guides, Academic Honesty Policy and Copyright guidelines:


Dates for evaluations are specified in the weekly schedule addendum to this outline. The evaluation process may include, but is not limited to, tests, exams, assignments or presentations. Any absences or missed submissions due to medical or other reasons must be supported by medical or other appropriate documentation within one (1) week of the due date. The faculty and program area must be notified immediately in the event of a missed evaluation. Upon acceptance of the documentation, the weighting of the missed deliverable will normally be applied to the final exam.

English Competency

The ability to communicate effectively is essential for success in business. Therefore, you must demonstrate English competency in this subject in both oral and written work. Ensure your written work includes correct sentence structure, spelling and punctuation. Always spell check, edit and proofread your work.

Grading is based on the following marking scheme:


Unit test                                                          10%
Learning labs/seminar presentations             20%
Mid-term                                                          30%
Final Examination                                           40%
Evaluation is based on correct language usage, organization and mastery of the subject at a post secondary level.  Students are expected to learn professional standards of performance in the subject areas, therefore tests and assignments will be graded on that basis.  In recognition of the significance of exceptional communication skills in the workplace, marks are deducted for language errors on all tests and exams.  A student can be failed on the basis of language errors alone.

Please retain this course outline document for future educational and/or employment use.

Academic Program Manager
Klaus Grober

Approved by: Academic Program Manager - Business Studies Danielle Mercier