Lecture, three hours. Preparation: one introduction to microeconomics course. Most U.S. population lives and works in urbanized areas, and world's population is becoming more urbanized with each passing decade. National, state, and local governments are engaged in managing, planning, policymaking, and governance in urban context. Ultimate efficacy of those public activities can be enhanced by understanding of economic forces acting on urban areas. Basic concepts related to location choice, agglomeration effects, economies of scale, and specialization by cities and transportation. P/NP or letter grading.