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MODERN PRINCIPLES OF
MICROECONOMICS

Third Edition

Tyler Cowen
George Mason University

Alex Tabarrok
George Mason University

Vice President, Editorial: Charles Linsmeier

Vice President, Editing, Design, and Media Production: Catherine Woods

Executive Editor: Carlise Stembridge

Marketing Manager: Tom Digiano

Consulting Editor: Paul Shensa

Senior Developmental Editor: Bruce Kaplan

Supplements and Media Editor: Lindsay Neff

Art Director: Diana Blume

Cover and Text Designer: Diana Blume

Director of Editing, Design, and Media Production: Tracey Kuehn

Managing Editor: Lisa Kinne

Project Editor: Fred Dahl, TSIevolve

Photo Editor: Robin Fadool

Production Manager: Barbara Anne Seixas

Supplements Production Manager: Stacey Alexander

Supplements Project Editor: Edgar Doolan

Composition: TSIevolve

Printing and Binding: RR Donnelley

Cover Image: © Oleh Barabash/Alamy and Jim Roof/myLoupe.com

Library of Congress Preassigned Control Number: 2014952565

ISBN-13: 978-1-4292-7841-6

ISBN-10: 1-4292-7841-2

© 2015, 2013, 2010 by Worth Publishers

All rights reserved.

Printed in the United States of America

First printing

Worth Publishers

41 Madison Avenue

New York, NY 10010

www.worthpublishers.com

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Economics is the study of how to get the most out of life.

Tyler and Alex