ADVANCED MACROECONOMICS

SYLLABUS
FOR MAGISTER AGRIBUSINESS IN JAMBI UNIVERSITY

Lecturer:

1) Prof. Dr. Ir. Dompak MT Napitupulu, M.Sc

2) Dr. Ir. Ernawati HD., M.S.

General Description :
The course is focused on economic analysis of production agriculture. The influential role of
plant and animal biological growth processes sets this field of study apart from industrial
production processes, where much greater levels of control are available to the producer and
input and output relationships are measured with more completeness and precision. We will
cover the basic theory and analytical tools required to conduct analysis of optimal management
decisions subject to the biological production technology.

Grading:

ACTIVITIES PERCENTAGES
Problem sets and class participation 30%
Midterm exam (90 minutes) 35%
Final exam (90 minutes) 35%

Recitations

There will be weekly recitation sections where you may ask questions about the problem
sets and review material from previous lecture. Be prepared to participate in class when
called on by the instructor.

Prerequisites

The prerequisites for this course are Principles of Microeconomics

Textbook
Debertin David. L. Agriculture Production Economics. Mcmillan Publishing Companies,.
New York., etc.

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Course outline:

I. An Introduction

1. The Logic of Economic Theory

2. Economic Theory versus Economic Model
3. Representing Economic Relationship
4. Consumption Versus Production Economic
5. Agriculture Production Economic

II. Production with One Variabel Input

1. Production Functuion
2. Fix and Variabel Inputs
3. The Law of Deminishing Returns
4. Marginal, Average, and Total Production
5. The Neoclasical Production Function
6. A Single input production Elasticity
7. Elasticities of Production for the neoclasical Production Function

III. Profit Maximisation with one input

1. Review of Keinesian Model of Agregate Demand
2. The Open Economy
3. Alternatif Asumption about Wage and price Rigidity
4. Output – Inflation Tradeoffs

IV. Cost, Return, and Profits on the Output sides

a. Some basic Definition
b. Simple Profit Maximitation from the Output side
c. The Duality of cost and Production
d. The Invers of Production Function
e. The Linkage between Cost and Production Function
f. The Supply Fuction for The Firm

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 V. Production With Two Inputs
a. An Isoquant and Marginal rate of Substitution
b. Isoquant and Ridge Line
c. MRS and Marginal Product
d. Partial and Total Derivatives and The MRS

VI. Maximization with Two Inputs Case

a. An Introduction to Maximization
b. The Maximum of Function
c. Matrix Algebra principle
d. Profit Maximization wit two inputs

VII. Maximization Subject to Budget Constrain

a. The Budget Constraint
b. Budget Constrain and The Isoquant map
c. Isoclines and Expantion Path
d. General Expantion of Path Condition

VIII. Constrained Maximization and Minimization

a. Constrained Revenue Maximization
b. Second Order Conditions
c. Langrarian Multiplier
d. Constrained Output Maximisation
IX. Return to Scale, Homogeuous Production Function
a. Economics and Diseconomies of Size
b. Economics and Diseconomies of Scale
c. Homogenuos production Function
X. The Cobb-Douglas production Function
a. The original of Cobb-Douglas Function
b. Early Generalization
c. Some Characteristic of Coob Douglas
d. Isoquant for Coob Douglas type of function
e. Profit Maximization With Coob Douglas Function
XI. The Elastisity of Substitution
a. Elasticity of Substitution and the Coob Douglas Fuction
b. The Cess Production Function
c. Elasticity of Substitution and the Translog Fuction

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XII. The Demand for Input to The production Process
a. A single Input Setting
b. The Elaticity of Input Demand
c. Input demand function in two input setting

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