Intermediate Microeconomics with Applications

Preface1 Introduction to Microeconomics A Simple Microeconomic Model Microeconomics and the Theory of Price Normative and Positive Microeconomics Assumptions and Microeconomics A Brief Review of Supply and Demand Applications Suggested Applications Exercises Suggested Readings2 Utility and Preference Utility and Rationality Utility Maximization Under Constraints The Income-Price Budget Constraint and Utility Maximization Applications Exercises Suggested Readings3 Utility and Indifference Analysis Multicommodity Utility Function The Budget Constraint or the Isocost Function The Consumer "Optimum" Consumer Equilibrium with Changes in Income and Prices Utility and Consumer Demand—The Price-Consumption Locus Applications Exercises Suggested Readings4 The Theory of Demand Demand Functions Demand Variables Elasticity of Demand Determinants of Price Elasticity Consumer Expenditures and Price Elasticity Cross-Price Elasticity of Demand Income Elasticity of Demand Some Other Elasticities Comments Applications Exercises Suggested Readings5 Revenue Analysis Total, Marginal, and Incremental Revenue Revenue and Demand Revenue with Constant Price Revenues when Price Varies with Quantity Purchased Revenues and Multipart Tariffs Revenues and Discounts Revenues from Multiple Markets Revenues from Competing Products "Net" Revenues: Commissions, Transportation Costs, and Taxes Revenues and "Joint" Products Revenues and the Price Elasticity of Demand Revenues, Markup, and Elasticity Revenues and Nonprice Competition Applications Exercises Suggested Readings6 Theory of Production Production Functions, Output, and Inputs The Production Environment Production with One Variable Input Applications Exercises Suggested Readings7 Further Considerations in Production Theory Production with Two Variable Inputs Economies and Diseconomies of Scale The Firm's Optimal Choice of Inputs Choice of Inputs with Price Variations The Firm's Expansion Path Changes in Technology Applications Exercises Suggested Readings8 Linear Programming Solution with Graphs A Numerical Example Involving Profits The Algebraic Solution Integer Programming Limitations to Linear Programming Applications Suggested Applications Exercises Suggested Readings9 Theory of Costs Costs of Production in the Short Run Cost Minimization with Multiple Plants Cost Minimization with Several Variable Inputs Cost Variation with Rate and Quality of Output An Empirical Cost Function Costs in the Long Run Other Types of Cost Functions Applications Exercises Suggested Readings10 Profits Profits and Profit Maximization Some Other Indicators of Profitability The Firm's Break-Even Points Revenue Maximization and the Internal Profit Constraint Profits and the Managerial Function Do Firms Maximize Profits? Applications Exercises Suggested Readings11 Perfect Competition Determinants of Market Structure Perfect Competition The Firm in the Short Run The Firm in the Long Run Long-Run Cost (Supply) in the Industry Pure Competition Applications Exercises Suggested Readings12 Firms Under Imperfect Competition Monopolistic Competition Monopoly Measurement of Monopoly Power Oligopoly Two Models of Oligopoly Barriers to Entry in Oligopoly Oligopoly and Concentration Indexes Applications Exercises Suggested Readings13 Pricing Topics Price Discrimination Profit Maximization with Multiple Products Profit Maximization and Cost Considerations Oligopoly Behavior Models Some Special Models Applications Exercises Suggested Readings14 Decisions Under Uncertainity Theory of Games Decision Tree Analysis Applications Exercises Suggested Readings15 The Market for Resources The Factors of Production Market Structure and Input Price Demand for Variable Inputs with Exogenous Changes A Model of Derived Demand Applications Exercises Suggested Readings16 More About Resources Imperfect Competition in the Resource Market Supply of Inputs The Labor Market The Capital Market Distribution of Income and Factor Prices Applications Exercises Suggested Readings17 General Equilibrium and Welfare Economics Economic Efficiency Efficiency in Consumption Welfare Economics Welfare Criteria Benefit-Cost Analysis The Public Sector Applications Exercises Suggested Readings18 Economic Regulation Regulation of Price Regulation of the Rate of Return The Ramsey Pricing and Inverse Elasticity Rule The Cost of Regulation Exercises Suggested ReadingsChapter 1 AppendixChapter 2 AppendixChapter 3 AppendixChapter 4 AppendixChapter 5 AppendixChapter 6 AppendixChapter 7 AppendixChapter 8 AppendixChapter 9 AppendixChapter 10 AppendixChapter 11 AppendixChapter 12 AppendixChapter 13 AppendixChapter 14 AppendixChapter 15 AppendixChapter 16 AppendixChapter 17 AppendixGlossaryIndex