Title Page
Copyright Page
Dedication Page
Handy as a Swiss Army Knife
About the Authors
Preface
Gratitude
Chapter Introduction
1.1 Microeconomics (and What It Can Teach Us about Rosa and Lauren)
1.2 This Book (and How Rosa and Lauren Would See It)
Summary
Key Terms
Review Questions
Chapter Introduction
2.1 Markets and Models
2.2 Demand
2.3 Supply
2.4 Market Equilibrium
2.5 Elasticity
2.6 Conclusion
Summary
Key Terms
Review Questions
Problems
Chapter Introduction
3.1 Consumer and Producer Surplus: Who Benefits in a Market?
3.2 Price Regulations
3.3 Quantity Regulations
3.4 Taxes
3.5 Subsidies
3.6 Conclusion
Summary
Key Terms
Review Questions
Problems
Chapter Introduction
4.1 The Consumer's Preferences and the Concept of Utility
4.2 Indifference Curves
4.3 The Consumer's Income and the Budget Constraint
4.4 Combining Utility, Income, and Prices: What Will the Consumer Consume?
4.5 Conclusion
Summary
Key Terms
Review Questions
Problems
Appendix Introduction
Consumer's Optimization Problem
The Marginal Rate of Substitution and Marginal Utility
Utility Maximization
Utility Maximization Using the Lagrangian
Expenditure Minimization
Problems
Chapter Introduction
5.1 How Income Changes Affect an Individual’s Consumption Choices
5.2 How Price Changes Affect Consumption Choices
5.3 Decomposing Consumer Responses to Price Changes into Income and Substitution Effects
5.4 The Impact of Changes in Another Good’s Price: Substitutes and Complements
5.5 Combining Individual Demand Curves to Obtain the Market Demand Curve
5.6 Conclusion
Summary
Key Terms
Review Questions
Problems
Appendix The Calculus of Income and Substitution Effects
Problems
Chapter Introduction
6.1 The Basics of Production
6.2 Production in the Short Run
6.3 Production in the Long Run
6.4 The Firm’s Cost-Minimization Problem
6.5 Returns to Scale
6.6 Technological Change
6.7 The Firm’s Expansion Path and Total Cost Curve
6.8 Conclusion
Summary
Key Terms
Review Questions
Problems
Appendix The Calculus of Cost Minimization
Marginal Product of Labor and Marginal Rate of Technical Substitution
Cost Minimization Using Calculus
The Firm's Expansion Path
Problems
Chapter Introduction
7.1 Costs That Matter for Decision Making: Opportunity Costs
7.2 Costs That Do Not Matter for Decision Making: Sunk Costs
7.3 Costs and Cost Curves
7.4 Average and Marginal Costs
7.5 Short-Run and Long-Run Cost Curves
7.6 Economies in the Production Process
7.7 Conclusion
Summary
Key Terms
Review Questions
Problems
Chapter 7 Appendix: The Calculus of a Firm’s Cost Structure
Problems
Chapter Introduction
8.1 Market Structures and Perfect Competition in the Short Run
8.2 Profit Maximization in a Perfectly Competitive Market
8.3 Perfect Competition in the Short Run
8.4 Perfectly Competitive Industries in the Long Run
8.5 Producer Surplus, Economic Rents, and Economic Profits
8.6 Conclusion
Summary
Key Terms
Review Questions
Problems
Chapter Introduction
9.1 Sources of Market Power
9.2 Market Power and Marginal Revenue
9.3 Profit Maximization for a Firm with Market Power
9.4 How a Firm with Market Power Reacts to Market Changes
9.5 The Winners and Losers from Market Power
9.6 Governments and Market Power: Regulation, Antitrust, and Innovation
9.7 Conclusion
Summary
Key Terms
Review Questions
Problems
Chapter 9 Appendix:The Calculus of Profit Maximization
The Profit-Maximizing Condition
Marginal Revenue
Problems
Chapter Introduction
10.1 The Basics of Pricing Strategy
10.2 Direct Price Discrimination I: Perfect/First-Degree Price Discrimination
10.3 Direct Price Discrimination II: Segmenting/Third-Degree Price Discrimination
10.4 Indirect/Second-Degree Price Discrimination
10.5 Bundling
10.6 Advanced Pricing Strategies
10.7 Conclusion
Summary
Key Terms
Review Questions
Problems
Chapter Introduction
11.1 What Does Equilibrium Mean in an Oligopoly?
11.2 Oligopoly with Identical Goods: Collusion and Cartels
11.3 Oligopoly with Identical Goods: Bertrand Competition
11.4 Oligopoly with Identical Goods: Cournot Competition
11.5 Oligopoly with Identical Goods but with a First-Mover: Stackelberg Competition
11.6 Oligopoly with Differentiated Goods: Bertrand Competition
11.7 Monopolistic Competition
11.8 Conclusion
Summary
Key Terms
Review Questions
Problems
Chapter Introduction
12.1 What Is a Game?
12.2 Nash Equilibrium in One-Period Games
12.3 Repeated Games
12.4 Sequential Games
12.5 Strategic Moves, Credibility, and Commitment
12.6 Conclusion
Summary
Key Terms
Review Questions
Problems
Chapter Introduction
13.1 Demand in a Perfectly Competitive Factor Market
13.2 Supply in a Perfectly Competitive Factor Market
13.3 Labor Market Equilibrium
13.4 The Labor Market in the Long Run
13.5 Other Perfectly Competitive Factor Markets
13.6 Imperfectly Competitive Factor Markets: Monopsony, a Monopoly in Factor Demand
13.7 Imperfectly Competitive Factor Markets: Monopoly in Factor Supply
13.8 Bilateral Monopoly
13.9 Conclusion
Summary
Key Terms
Review Questions
Problems
Chapter Introduction
14.1 Present Discounted Value Analysis
14.2 Evaluating Investment Choices
14.3 The Correct Interest Rate to Use, and Capital Markets
14.4 Evaluating Risky Investments
14.5 Uncertainty, Risk, and Insurance
14.6 Conclusion
Summary
Key Terms
Review Questions
Problems
Chapter Introduction
15.1 General Equilibrium Effects in Action
15.2 General Equilibrium: Equity and Efficiency
15.3 Efficiency in Markets: Exchange Efficiency
15.4 Efficiency in Markets: Input Efficiency
15.5 Efficiency in Markets: Output Efficiency
15.6 Markets, Efficiency, and the Welfare Theorems
15.7 Conclusion
Summary
Key Terms
Review Questions
Problems
Chapter Introduction
16.1 The Lemons Problem and Adverse Selection
16.2 Moral Hazard
16.3 Asymmetric Information in Principal–Agent Relationships
16.4 Signaling to Solve Asymmetric Information Problems
16.5 Conclusion
Summary
Key Terms
Review Questions
Problems
Chapter Introduction
17.1 Externalities
17.2 Correcting Externalities
17.3 The Coase Theorem: Free Markets Addressing Externalities on Their Own
17.4 Public Goods
17.5 Conclusion
Summary
Key Terms
Review Questions
Problems
Chapter Introduction
18.1 When Human Beings Fail to Act the Way Economic Models Predict
18.2 Does Behavioral Economics Mean Everything We’ve Learned Is Useless?
18.3 Testing Economic Theories with Data: Experimental Economics
18.4 Conclusions and the Future of Microeconomics
Summary
Key Terms
Review Questions
Problems
Chapter Introduction
Section 2: Calculus Review