Intermediate Microeconomics with Applications

Intermediate Microeconomics with Applications

1st Edition - January 1, 1980

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  • Author: Aroop K. Mahanty
  • eBook ISBN: 9781483268798

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Intermediate Microeconomics with Applications describes the methods and practicality of microeconomics, specifically the actual empirical models. This book is divided into 17 chapters and begins with discussions of the principles and concept of utility, preference, indifference and revenue analysis, demand, and production. The succeeding chapters deal with the production theory, the applications of linear programming, theory of costs, and profits. Other chapters explore the fundamentals of perfect and imperfect competition, the issues of pricing, and decision making under uncertainty. The final chapters discuss some factors of production and marketing, the link between the so-called “general equilibrium” and welfare economics, and some economic regulation. This book will be of value to economists and business managers.

Table of Contents

  • Preface

    1 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


    Suggested Applications


    Suggested Readings

    2 Utility and Preference

    Utility and Rationality

    Utility Maximization Under Constraints

    The Income-Price Budget Constraint and Utility Maximization



    Suggested Readings

    3 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



    Suggested Readings

    4 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




    Suggested Readings

    5 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



    Suggested Readings

    6 Theory of Production

    Production Functions, Output, and Inputs

    The Production Environment

    Production with One Variable Input



    Suggested Readings

    7 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



    Suggested Readings

    8 Linear Programming

    Solution with Graphs

    A Numerical Example Involving Profits

    The Algebraic Solution

    Integer Programming

    Limitations to Linear Programming


    Suggested Applications


    Suggested Readings

    9 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



    Suggested Readings

    10 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?



    Suggested Readings

    11 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



    Suggested Readings

    12 Firms Under Imperfect Competition

    Monopolistic Competition


    Measurement of Monopoly Power


    Two Models of Oligopoly

    Barriers to Entry in Oligopoly

    Oligopoly and Concentration Indexes



    Suggested Readings

    13 Pricing Topics

    Price Discrimination

    Profit Maximization with Multiple Products

    Profit Maximization and Cost Considerations

    Oligopoly Behavior Models

    Some Special Models



    Suggested Readings

    14 Decisions Under Uncertainity

    Theory of Games

    Decision Tree Analysis



    Suggested Readings

    15 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



    Suggested Readings

    16 More About Resources

    Imperfect Competition in the Resource Market

    Supply of Inputs

    The Labor Market

    The Capital Market

    Distribution of Income and Factor Prices



    Suggested Readings

    17 General Equilibrium and Welfare Economics

    Economic Efficiency

    Efficiency in Consumption

    Welfare Economics

    Welfare Criteria

    Benefit-Cost Analysis

    The Public Sector



    Suggested Readings

    18 Economic Regulation

    Regulation of Price

    Regulation of the Rate of Return

    The Ramsey Pricing and Inverse Elasticity Rule

    The Cost of Regulation


    Suggested Readings

    Chapter 1 Appendix

    Chapter 2 Appendix

    Chapter 3 Appendix

    Chapter 4 Appendix

    Chapter 5 Appendix

    Chapter 6 Appendix

    Chapter 7 Appendix

    Chapter 8 Appendix

    Chapter 9 Appendix

    Chapter 10 Appendix

    Chapter 11 Appendix

    Chapter 12 Appendix

    Chapter 13 Appendix

    Chapter 14 Appendix

    Chapter 15 Appendix

    Chapter 16 Appendix

    Chapter 17 Appendix



Product details

  • No. of pages: 528
  • Language: English
  • Copyright: © Academic Press 1980
  • Published: January 1, 1980
  • Imprint: Academic Press
  • eBook ISBN: 9781483268798

About the Author

Aroop K. Mahanty

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