Alpha Security: The Complete Back Box Set

Microeconomics is a classroom-tested resource for learning the key concepts, essential tools, and applications of microeconomics. This leading textbook enables students to recognize and analyze significant data, patterns, and trends in real markets through its integrated, student-friendly approach to the subject -- providing practice problems, hands-on exercises, illustrative examples, and engaging applications that ground theory firmly in the real world. Each chapter, opening with a set of clearly defined learning goals based on the Bloom Taxonomy, features numerous Learning-by-Doing (LBD) problems, mathematical and graphical data, and varied problem sets focused on current events. Now in its sixth edition, the text offers extensive new and revised content throughout. All applications reflect current data and important new developments in the field of economics, including behavioral economics, randomized controlled trials (RCTs) in policy evaluation and design, and computational-based microeconomics. Updated chapter openers, designed to increase student interest, cover topics including the economic impacts of climate change, U.S. household income and spending, surge pricing by Uber and Lyft, the effect of immigration on wages, and advances in robotics, automation, artificial intelligence, and more. Cover Title Page Copyright About the Author Preface Acknowledgments Brief Contents Contents Part 1 Introduction to Microeconomics Chapter 1 Analyzing Economic Problems Microeconomics and Climate Change 1.1 Why Study Microeconomics? 1.2 Three Key Analytical Tools Constrained Optimization Equilibrium Analysis Comparative Statics 1.3 Positive and Normative Analysis Learning-By-Doing Exercises 1.1 Constrained Optimization: The Farmer’s Fence 1.2 Constrained Optimization: Consumer Choice 1.3 Comparative Statics with Market Equilibrium in the U.S. Market for Corn 1.4 Comparative Statics with Constrained Optimization Chapter 2 Demand and Supply Analysis What Gives with the Price of Corn? 2.1 Demand, Supply, and Market Equilibrium Demand Curves Supply Curves Market Equilibrium Shifts in Supply and Demand 2.2 Price Elasticity of Demand Elasticities Along Specific Demand Curves Price Elasticity of Demand and Total Revenue Determinants of the Price Elasticity of Demand Market-Level Versus Brand-Level Price Elasticities of Demand 2.3 Other Elasticities Income Elasticity of Demand Cross-Price Elasticity of Demand Price Elasticity of Supply 2.4 Elasticity in the Long Run Versus the Short Run Greater Elasticity in the Long Run than in the Short Run Greater Elasticity In the Short Run than in the Long Run 2.5 Back-of-the-Envelope Calculations Fitting Linear Demand Curves Using Quantity, Price, and Elasticity Information Identifying Supply and Demand Curves on the Back of an Envelope Identifying the Price Elasticity of Demand from Shifts in Supply Appendix Price Elasticity of Demand along a Constant Elasticity Demand Curve Learning-By-Doing Exercises 2.1 Sketching a Demand Curve 2.2 Sketching a Supply Curve 2.3 Calculating Equilibrium Price and Quantity 2.4 Comparative Statics on the Market Equilibrium 2.5 Price Elasticity of Demand 2.6 Elasticities along Special Demand Curves Part 2 Consumer Theory Chapter 3 Consumer ­Preferences And The Concept Of Utility Why Do You Like What You Like? 3.1 Representa­tions of Preferences Assumptions About Consumer Preferences Ordinal and Cardinal Ranking 3.2 Utility Functions Preferences with a Single Good: The Concept of Marginal Utility Preferences with Multiple Goods: Marginal Utility, Indifference Curves, and the Marginal Rate of Substitution 3.3 Special Preferences Perfect Substitutes Perfect Complements The Cobb–Douglas Utility Function Quasilinear Utility Functions 3.4 Behavioral Aspects of Choice Learning-By-Doing Exercises 3.1 Marginal Utility 3.2 Marginal Utility That Is Not Diminishing 3.3 Indifference Curves with Diminishing MRSx,y 3.4 Indifference Curves with Increasing MRSx,y Chapter 4 Consumer Choice How Much of What You Like Should You Buy? 4.1 The Budget Constraint How Does a Change in Income Affect the Budget Line? How Does a Change in Price Affect the Budget Line? 4.2 Optimal Choice Using the Tangency Condition to Understand When a Basket is Not Optimal Finding an Optimal Consumption Basket Two Ways of Thinking About Optimality Corner Points 4.3 Consumer Choice with Composite Goods Application: Coupons and Cash Subsidies Application: Joining a Club Application: Borrowing and Lending Application: Quantity Discounts 4.4 Revealed Preference Are Observed Choices Consistent with Utility Maximization? 4.5 Maximizing Utility Using Lagrange Multipliers Appendix The Time Value of Money Learning-By-Doing Exercises 4.1 Good News/Bad News and the Budget Line 4.2 Finding an Interior Optimum 4.3 Finding a Corner Point Solution 4.4 Corner Point Solution with Perfect Substitutes 4.5 Consumer Choice That Fails to Maximize Utility 4.6 Other Uses of Revealed Preference 4.7 Finding an Interior Optimum Using the Method of Lagrange 4.8 Finding a Corner Point Solution Using the Method of Lagrange Chapter 5 The Theory of Demand Why Understanding the Demand for Cigarettes Is Important for Public Policy 5.1 Optimal Choice and Demand The Effects of a Change in Price The Effects of a Change in Income The Effects of a Change in Price or Income: An Algebraic Approach 5.2 Change in the Price of a Good: Substitution Effect and Income Effect The Substitution Effect The Income Effect Income and Substitution Effects When Goods Are Not Normal 5.3 Change in the Price of a Good: The Concept of Consumer Surplus Understanding Consumer Surplus from the Demand Curve Understanding Consumer Surplus from the Optimal Choice Diagram: Compensating Variation and Equivalent Variation 5.4 Market Demand Market Demand with Network Externalities 5.5 The Choice of Labor and Leisure As Wages Rise, Leisure First Decreases, then Increases The Backward-Bending Supply of Labor 5.6 Consumer Price Indices Learning-By-Doing Exercises 5.1 A Normal Good Has a Positive Income Elasticity of Demand 5.2 Finding a Demand Curve (No Corner Points) 5.3 Finding a Demand Curve (with a Corner Point Solution) 5.4 Finding Income and Substitution Effects Algebraically 5.5 Income and Substitution Effects with a Price Increase 5.6 Income and Substitution Effects with a Quasilinear Utility Function 5.7 Consumer Surplus: Looking at the Demand Curve 5.8 Compensating and Equivalent Variations with No Income Effect 5.9 Compensating and Equivalent Variations with an Income Effect 5.10 The Demand for Leisure and the Supply of Labor Part 3 Production and Cost Theory Chapter 6 Inputs and Production Functions Can They Do It Better and Cheaper? 6.1 Introduction to Inputs and Production Functions 6.2 Production Functions with a Single Input Total Product Functions Marginal and Average Product Relationship Between Marginal and Average Product 6.3 Production Functions with More Than One Input Total Product and Marginal Product with Two Inputs Isoquants Economic and Uneconomic Regions of Production Marginal Rate of Technical Substitution 6.4 Substitutability Among Inputs Describing a Firm’s Input Substitution Opportunities Graphically Elasticity of Substitution Special Production Functions 6.5 Returns to Scale Definitions Returns to Scale Versus Diminishing Marginal Returns 6.6 Technological Progress Appendix The Elasticity of Substitution for a Cobb–Douglas Production Function Learning-By-Doing Exercises 6.1 Deriving the Equation of an Isoquant 6.2 Relating the Marginal Rate of Technical Substitution to Marginal Products 6.3 Calculating the Elasticity of Substitution from a Production Function 6.4 Returns to Scale for a Cobb–Douglas Production Function 6.5 Technological Progress Chapter 7 Costs and Cost ­Minimization What’s Behind the Self-Service Revolution? 7.1 Cost Concepts for Decision Making Opportunity Cost Economic versus Accounting Costs Sunk (Unavoidable) versus Nonsunk (Avoidable) Costs 7.2 The Cost-Minimization Problem Long Run versus Short Run The Long-Run Cost-Minimization Problem Isocost Lines Graphical Characterization of the Solution to the Long-Run Cost-Minimization Problem Corner Point Solutions 7.3 Comparative Statics Analysis of the Cost-Minimization Problem Comparative Statics Analysis of Changes in Input Prices Comparative Statics Analysis of Changes in Output Summarizing the Comparative Statics Analysis: The Input Demand Curves The Price Elasticity of Demand for Inputs 7.4 Short-Run Cost Minimization Characterizing Costs in the Short Run Cost Minimization in the Short Run Comparative Statics: Short-Run Input Demand versus Long-Run Input Demand More Than One Variable Input in the Short Run 7.5 Minimizing Long-Run Costs Using Lagrange Multipliers Appendix Advanced Topics in Cost Minimization Learning-By-Doing Exercises 7.1 Using the Cost Concepts for a College Campus Business 7.2 Finding an Interior Cost-Minimization Optimum 7.3 Finding a Corner Point Solution with Perfect Substitutes 7.4 Deriving the Input Demand Curves from a Production Function 7.5 Short-Run Cost Minimization with One Fixed Input 7.6 Short-Run Cost Minimization with Two Variable Inputs 7.7 Finding an Interior Optimum Using the Method of Lagrange 7.8 Finding a Corner Point Solution Using the Method of Lagrange Chapter 8 Cost Curves How Can Hisense Get a Handle on Costs? 8.1 Long-Run Cost Curves Long-Run Total Cost Curve How Does the Long-Run Total Cost Curve Shift When Input Prices Change? Long-Run Average and Marginal Cost Curves 8.2 Short-Run Cost Curves Short-Run Total Cost Curve Relationship Between the Long-Run and the Short-Run Total Cost Curves Short-Run Average and Marginal Cost Curves Relationships Between the Long-Run and the Short-Run Average and Marginal Cost Curves When Are Long-Run and Short-Run Average and Marginal Costs Equal, and When Are They Not? 8.3 Special Topics in Cost Economies of Scope Economies of Experience: The Experience Curve 8.4 Estimating Cost Functions Constant Elasticity Cost Function Translog Cost Function Appendix Shephard’s Lemma and Duality Learning-By-Doing Exercises 8.1 Finding the Long-Run Total Cost Curve from a Production Function 8.2 Deriving Long-Run Average and Marginal Cost Curves from a Long-Run Total Cost Curve 8.3 Deriving a Short-Run Total Cost Curve 8.4 The Relationship between Short-Run and Long-Run Average Cost Curves Part 4 Perfect Competition Chapter 9 Perfectly Competitive Markets A Rose Is a Rose Is a Rose 9.1 What is Perfect Competition? 9.2 Profit Maximization by a Price-Taking Firm Economic Profit versus Accounting Profit The Profit-Maximizing Output Choice for a Price-Taking Firm 9.3 How the Market Price Is Determined: Short-Run Equilibrium The Price-Taking Firm’s Short-Run Cost Structure Short-Run Supply Curve for a Price-Taking Firm When All Fixed Costs Are Sunk Short-Run Supply Curve for a Price-Taking Firm When Some Fixed Costs Are Sunk and Some Are Nonsunk Short-Run Market Supply Curve Short-Run Perfectly Competitive Equilibrium Comparative Statics Analysis of the Short-Run Equilibrium 9.4 How the Market Price is Determined: Long-Run Equilibrium Long-Run Output and Plant-Size Adjustments by Established Firms The Firm’s Long-Run Supply Curve Free Entry and Long-Run Perfectly Competitive Equilibrium Long-Run Market Supply Curve Constant-Cost, Increasing-Cost, and Decreasing-Cost Industries What Does the Theory of Perfect Competition Teach Us? 9.5 Economic Rent and Producer Surplus Economic Rent Producer Surplus Economic Profit, Producer Surplus, Economic Rent Appendix Profit Maximization Implies Cost Minimization Learning-By-Doing Exercises 9.1 Deriving the Short-Run Supply Curve for a Price-Taking Firm 9.2 Deriving the Short-Run Supply Curve for a Price-Taking Firm with Some Nonsunk Fixed Costs 9.3 Short-Run Market Equilibrium 9.4 Calculating a Long-Run Equilibrium 9.5 Calculating Producer Surplus Chapter 10 Competitive Markets: Applications Is Support a Good Thing? 10.1 The Invisible Hand, Excise Taxes, and Subsidies The Invisible Hand Excise Taxes Incidence of a Tax Subsidies 10.2 Price Ceilings and Floors Price Ceilings Price Floors 10.3 Production Quotas 10.4 Price Supports in the Agricultural Sector Acreage Limitation Programs Government Purchase Programs 10.5 Import Quotas and Tariffs Quotas Tariffs Learning-By-Doing Exercises 10.1 Impact of an Excise Tax 10.2 Impact of a Subsidy 10.3 Impact of a Price Ceiling 10.4 Impact of a Price Floor 10.5 Comparing the Impact of an Excise Tax, a Price Floor, and a Production Quota 10.6 Effects of an Import Tariff Part 5 Market Power Chapter 11 Monopoly and Monopsony Why Do Firms Play Monopoly? 11.1 Profit Maxi­mization by a Monopolist The Profit-Maximization Condition A Closer Look at Marginal Revenue: Marginal Units and Inframarginal Units Average Revenue and Marginal Revenue The Profit-Maximization Condition Shown Graphically A Monopolist Does Not Have A Supply Curve 11.2 The Importance of Price Elasticity of Demand Price Elasticity of Demand and the Profit-Maximizing Price Marginal Revenue and Price Elasticity of Demand Marginal Cost and Price Elasticity of Demand: The Inverse Elasticity Pricing Rule The Monopolist Always Produces on the Elastic Region of the Market Demand Curve The IEPR Applies not Only to Monopolists Quantifying Market Power: The Lerner Index 11.3 Comparative Statics for Monopolists Shifts in Market Demand Shifts in Marginal Cost 11.4 Monopoly with Multiple Plants and Markets Output Choice with two Plants Output Choice with two Markets Profit Maximization by a Cartel 11.5 The Welfare Economics of Monopoly The Monopoly Equilibrium Differs from the Perfectly Competitive Equilibrium Monopoly Deadweight Loss Rent-Seeking Activities 11.6 Why Do Monopoly Markets Exist? Natural Monopoly Barriers to Entry 11.7 Monopsony The Monopsonist’s Profit-Maximization Condition An Inverse Elasticity Pricing Rule for Monopsony Monopsony Deadweight Loss Learning-By-Doing Exercises 11.1 Marginal and Average Revenue for a Linear Demand Curve 11.2 Applying the Monopolist’s Profit-Maximization Condition 11.3 Computing the Optimal Monopoly Price for a Constant Elasticity Demand Curve 11.4 Computing the Optimal Monopoly Price for a Linear Demand Curve 11.5 Computing the Optimal Price Using the Monopoly Midpoint Rule 11.6 Determining the Optimal Output, Price, and Division of Production for a Multiplant Monopolist 11.7 Determining the Optimal Output and Price for a Monopolist Serving Two Markets 11.8 Applying the Monopsonist’s Profit-Maximization Condition 11.9 Applying the Inverse Elasticity Rule for a Monopsonist Chapter 12 Capturing Surplus Why Did Your Carpet or Your Airline Ticket Cost So Much Less Than Mine? 12.1 Capturing Surplus 12.2 First-Degree Price Discrimination: Making the Most from Each Consumer 12.3 Second-Degree Price Discrimination: Quantity Discounts Block Pricing Subscription and Usage Charges 12.4 Third-Degree Price Discrimination: Different Prices for Different Market Segments Two Different Segments, Two Different Prices Screening Third-Degree Price Discrimination with Capacity Constraints Implementing the Scheme of Price Discrimination: Building “Fences” 12.5 Tying (Tie-In Sales) Bundling Mixed Bundling 12.6 Advertising Learning-By-Doing Exercises 12.1 Capturing Surplus: Uniform Pricing versus First-Degree Price Discrimination 12.2 Where Is the Marginal Revenue Curve with First-Degree Price Discrimination? 12.3 Increasing Profits with a Block Tariff 12.4 Third-Degree Price Discrimination in Railroad Transport 12.5 Third-Degree Price Discrimination for Airline Tickets 12.6 Price Discrimination Subject to Capacity Constraints 12.7 Markup and Advertising-to-Sales Ratio Part 6 Imperfect Competition and Strategic Behavior Chapter 13 Market Structure and Competition Is Competition Always the Same? If Not, Why Not? 13.1 Describing and Measuring Market Structure 13.2 Oligopoly with Homogene­ous Products The Cournot Model of Oligopoly Cournot Equilibrium and the IEPR The Bertrand Model of Oligopoly Why are the Cournot and Bertrand Equilibria Different? The Stackelberg Model of Oligopoly 13.3 Dominant Firm Markets 13.4 Oligopoly with Horizontally Differentiated Products What is Product Differentiation? Bertrand Price Competition with Horizontally Differentiated Products 13.5 Monopolistic Competition Short-Run and Long-Run Equilibrium in Monopolistically Competitive Markets Price Elasticity of Demand, Margins, and Number of Firms in the Market Do Prices Fall When More Firms Enter? Appendix The Cournot Equilibrium and the Inverse Elasticity Pricing Rule Learning-By-Doing Exercises 13.1 Computing a Cournot Equilibrium 13.2 Computing the Cournot Equilibrium for Two or More Firms with Linear Demand 13.3 Computing the Equilibrium in the Dominant Firm Model 13.4 Computing a Bertrand Equilibrium with Horizontally Differentiated Products Chapter 14 Game Theory and Strategic Behavior What’s in a Game? 14.1 The Concept of Nash Equilibrium A Simple Game The Nash Equilibrium The Prisoners’ Dilemma Dominant and Dominated Strategies Games with more Than One Nash Equilibrium Mixed Strategies Summary: How to Find All the Nash Equilibria in a Simultaneous-Move Game with Two Players 14.2 The Repeated Prisoners’ Dilemma 14.3 Sequential-Move Games and Strategic Moves Analyzing Sequential-Move Games The Strategic Value of Limiting One’s Options Learning-By-Doing Exercises 14.1 Finding the Nash Equilibrium: Coke versus Pepsi 14.2 Finding All of the Nash Equilibria in a Game 14.3 An Entry Game Chapter 15 Risk and Information Risky Business? 15.1 Describing Risky Outcomes Lotteries and Probabilities Expected Value Variance 15.2 Evaluating Risky Outcomes Utility Functions and Risk Preferences Risk-Neutral and Risk-Loving Preferences 15.3 Bearing and Eliminating Risk Risk Premium When Would a Risk-Averse Person Choose to Eliminate Risk? the Demand for Insurance Asymmetric Information: Moral Hazard and Adverse Selection Prospect Theory and Loss Aversion: An Alternative to Expected Utility Theory 15.4 Analyzing Risky Decisions Decision Tree Basics Decision Trees with a Sequence of Decisions The Value of Information 15.5 Auctions Types of Auctions and Bidding Environments Auctions When Bidders Have Private Values Auctions When Bidders Have Common Values: The Winner’s Curse Learning-By-Doing Exercises 15.1 Computing the Expected Utility for Two Lotteries for a Risk-Averse Decision Maker 15.2 Computing the Expected Utility for Two Lotteries: Risk-Neutral and Risk-Loving Decision Makers 15.3 Computing the Risk Premium from a Utility Function 15.4 The Willingness to Pay for Insurance 15.5 Verifying the Nash Equilibrium in a First-Price Sealed-Bid Auction with Private Values Chapter 16 General Equilibrium Theory How Do Gasoline Taxes Affect the Economy? 16.1 General Equilibrium Analysis: Two Markets 16.2 General Equilibrium Analysis: Many Markets The Origins of Supply and Demand in a Simple Economy The General Equilibrium in Our Simple Economy Walras’ Law 16.3 General Equilibrium Analysis: Comparative Statics 16.4 The Efficiency of Competitive Markets What Is Economic Efficiency? Exchange Efficiency Input Efficiency Substitution Efficiency Does the General Competitive Equilibrium Satisfy Substitution Efficiency? Pulling the Analysis Together: The Fundamental Theorems of Welfare Economics 16.5 Gains From Free Trade Free Trade Is Mutually Beneficial Comparative Advantage Appendix Deriving the Demand and Supply Curves for the General Equilibrium in Figure 16.10 and Learning-By-Doing Exercises 16.2 Learning-By-Doing Exercises 16.1 Finding the Prices at a General Equilibrium with Two Markets 16.2 Finding the Conditions for a General Equilibrium with Four Markets 16.3 Checking the Conditions for Exchange Efficiency Chapter 17 Externalities and Public Goods When Does the Invisible Hand Fail? 17.1 Introduction 17.2 Externalities Negative Externalities and Economic Efficiency Positive Externalities and Economic Efficiency Property Rights and the Coase Theorem 17.3 Public Goods Efficient Provision of a Public Good The Free-Rider Problem Learning-By-Doing Exercises 17.1 The Efficient Amount of Pollution 17.2 Emissions Fee 17.3 The Coase Theorem 17.4 Optimal Provision of a Public Good Mathematical Appendix Solutions to Selected Problems Glossary Index EULA "Appreciation for comparative statics analysis and will be better prepared to interpret events in real markets. Learning-By-Doing exercises, embedded in the text of each Chapter, guide the student through specific numerical problems. We use three to ten Learning-By-Doing exercises in each Chapter and have designed them to illustrate the core ideas of the Chapter. They are integrated with the graphical and verbal exposition, so that students can clearly see, through the use of numbers and tangible algebraic relationships, what the graphs and words are striving to teach. These exercises set the student up to do similar practice problems as well as more difficult analytical problems at the end of each Chapter. As noted above, we have added to the already complete end-of-Chapter problem sets to give students and instructors more opportunity to assess student understanding. Chapters have between 20 and 35 end-of-Chapter exercises. There is at least one exercise for each of the topics covered in the Chapter, and the topics covered by the exercises generally follow the order of topics in the Chapter. At the end of the book, there are fully worked-out solutions to selected exercises"-- Provided by publisher "Appreciation for comparative statics analysis and will be better prepared to interpret events in real markets. Learning-By-Doing exercises, embedded in the text of each Chapter, guide the student through specific numerical problems. We use three to ten Learning-By-Doing exercises in each Chapter and have designed them to illustrate the core ideas of the Chapter. They are integrated with the graphical and verbal exposition, so that students can clearly see, through the use of numbers and tangible algebraic relationships, what the graphs and words are striving to teach. These exercises set the student up to do similar practice problems as well as more difficult analytical problems at the end of each Chapter. As noted above, we have added to the already complete end-of-Chapter problem sets to give students and instructors more opportunity to assess student understanding. Chapters have between 20 and 35 end-of-Chapter exercises. There is at least one exercise for each of the topics covered in the Chapter, and the topics covered by the exercises generally follow the order of topics in the Chapter. At the end of the book, there are fully worked-out solutions to selected exercises"-- Résumé de l'éditeur