MicroeconomicsThe integration of real-world applications throughout this text gives students a practical perspective on microeconomic theory. Students are motivated and challenged by the use of core theory and the author's modern theories to analyze actual markets, and the author's clear, step-by-step approach to problem-solving helps them to better understand how microeconomic theory is used to solve economic problems and analyze policy issues. *NEW! 21 new Applications in the Second Edition spotlight such newsworthy recent issues as Internet taxes and baseball ticket- pricing strategies, and there are also 29 updated Applications. *NEW! The author has included several new, longer examples right in the text narrative, including analysis of Sony's pricing strategies for its robot dog Aibo. *NEW! There are a number of new end-of-chapter problems, many of them based on recent events. *The author presents the clearest coverage of basic theory in the first half of the book and provides a fully up-to-date, authoritative treatment of modern theories in many chapters in the second half. *The text has a wealth of real-world-based Applications, which use real people, real companies, and real data whereve |
Common terms and phrases
amount average cost curve average variable cost best-response budget constraint bundle burritos cars Chapter competitive equilibrium competitive firm competitive market constant consumer surplus cost of producing Cournot deadweight loss demand curve determine e₁ earn economists efficient elasticity of demand entry equals Equation equilibrium price example expansion path extra factor falls Figure firm produces fixed cost higher horizontal income effect increase indifference curve isocost line isoquant less level of output long-run average cost long-run cost lower marginal cost curve marginal product marginal rate marginal revenue market price market supply curve maximizes its profit million minimum monopoly monopsony Nash equilibrium number of firms output level p₁ panel pork price discrimination producer surplus product of labor production function profit-maximizing Q₁ quantity demanded relatively residual demand returns to scale rises risk sell shift short-run shows slope substitution units of output utility wage welfare workers zero