A Short Course in Intermediate Microeconomics with Calculus

Contents
Preface
	Preface
1 Introduction
I Theory of the Consumer
	2 Preferences and Utility
		2.1 Introduction
		2.2 The Consumer's Preference Relation
		2.3 The Marginal Rate of Substitution
		2.4 The Consumer's Utility Function
		2.5 Utility Functions and the Marginal Rate of Substitution
		2.6 A Solved Problem
		Exercises
		Appendix. Differentiation of Functions
3 The Budget Constraint and the Consumer'sOptimal Choice
	3.1 Introduction
	3.2 The Standard Budget Constraint, the Budget Set, and the Budget Line
	3.3 Shifts of the Budget Line
	3.4 Odd Budget Constraints
	3.5 Income and Consumption over Time
	3.6 The Consumer's Optimal Choice: Graphical Analysis
	3.7 The Consumer's Optimal Choice: Utility Maximization Subject to the Budget Constraint
	3.8 Two Solved Problems
	Exercises
	Appendix. Maximization Subject to a Constraint: The LagrangeFunction Method
4 Demand Functions
	4.1 Introduction
	4.2 Demand as a Function of Income
	4.3 Demand as a Function of Price
	4.4 Demand as a Function of Price of the Other Good
	4.5 Substitution and Income Effects
	4.6 The Compensated Demand Curve
	4.7 Elasticity
	4.8 The Market Demand Curve
	4.9 A Solved Problem
	Exercises
5 Supply Functions for Labor and Savings
	5.1 Introduction to the Supply of Labor
	5.2 Choice between Consumption and Leisure
	5.3 Substitution and Income Effects in Labor Supply
	5.4 Other Types of Budget Constraints
	5.5 Taxing the Consumer's Wages
	5.6 Saving and Borrowing: The Intertemporal Choice of Consumption
	5.7 The Supply of Savings
	5.8 A Solved Problem
	Exercises
6 Welfare Economics 1: The One-Person Case
	6.1 Introduction
	6.2 Welfare Comparison of a Per-Unit Tax and an Equivalent Lump-Sum Tax
	6.3 Rebating a Per-Unit Tax
	6.4 Measuring a Change in Welfare for One Person
	6.5 Measuring Welfare for Many People; A Preliminary Example
	6.6 A Solved Problem
	Exercises
	Appendix. Revealed Preference
7 Welfare Economics 2: The Many-Person Case
	7.1 Introduction
	7.2 Quasilinear Preferences
	7.3 Consumer's Surplus
	7.4 A Consumer's Surplus Example with Quasilinear Preferences
	7.5 Consumers' Surplus
	7.6 A Last Word on the Quasilinearity Assumption
	7.7 A Solved Problem
	Exercises
II Theory of the Producer
	8 Theory of the Firm 1: The Single-Input Model
		8.1 Introduction
		8.2 The Competitive Firm's Problem, Focusing on Its Output
		8.3 The Competitive Firm's Problem, Focusing on Its Input
		8.4 Multiple Outputs
		8.5 A Solved Problem
		Exercises
9 Theory of the Firm 2: The Long-Run, Multiple-Input Model
	9.1 Introduction
	9.2 The Production Function in the Long Run
	9.3 Cost Minimization in the Long Run
	9.4 Profit Maximization in the Long Run
	9.5 A Solved Problem
	Exercises
10 Theory of the Firm 3: The Short-Run, Multiple-Input Model
	10.1 Introduction
	10.2 The Production Function in the Short Run
	10.3 Cost Minimization in the Short Run
	10.4 Profit Maximization in the Short Run
	10.5 A Solved Problem
	Exercises
III Partial Equilibrium Analysis: Market Structure
	11 Perfectly Competitive Markets
		11.1 Introduction
		11.2 Perfect Competition
		11.3 Market/Industry Supply
		11.4 Equilibrium in a Competitive Market
		11.5 Competitive Equilibrium and Social Surplus Maximization
		11.6 The Deadweight Loss of a Per-Unit Tax
		11.7 A Solved Problem
		Exercises
12 Monopoly and Monopolistic Competition
	12.1 Introduction
	12.2 The Classical Solution to Monopoly
	12.3 Deadweight Loss from Monopoly: Comparing Monopolyand Competition
	12.4 Price Discrimination
	12.5 Monopolistic Competition
	12.6 A Solved Problem
	Exercises
13 Duopoly
	13.1 Introduction
	13.2 Cournot Competition
	13.3 More on Dynamics
	13.4 Collusion
	13.5 Stackelberg Competition
	13.6 Bertrand Competition
	13.7 A Solved Problem
	Exercises
14 Game Theory
	14.1 Introduction
	14.2 The Prisoners' Dilemma, and the Idea of DominantStrategy Equilibrium
	14.3 Prisoners' Dilemma Complications: Experimental Evidenceand Repeated Games
	14.4 The Battle of the Sexes, and the Idea of Nash Equilibrium
	14.5 Battle of the Sexes Complications: Multiple or No Nash Equilibria,and Mixed Strategies
	14.6 The Expanded Battle of the Sexes, When More Choices MakePlayers Worse Off
	14.7 Sequential Move Games
	14.8 Threats
	14.9 A Solved Problem
	Exercises
IV General Equilibrium Analysis
	15 An Exchange Economy
		15.1 Introduction
		15.2 An Economy with Two Consumers and Two Goods
		15.3 Pareto Efficiency
		15.4 Competitive or Walrasian Equilibrium
		15.5 The Two Fundamental Theorems of Welfare Economics
		15.6 A Solved Problem
		Exercises
16 A Production Economy
	16.1 Introduction
	16.2 A Robinson Crusoe Production Economy
	16.3 Pareto Efficiency
	16.4 Walrasian or Competitive Equilibrium
	16.5 When There Are Two Goods, Bread and Rum
	16.6 The Two Welfare Theorems Revisited
	16.7 A Solved Problem
	Exercises
V Market Failure
	17 Externalities
		17.1 Introduction
		17.2 Examples of Externalities
		17.3 The Oil Refiner and the Fish Farm
		17.4 Classical Solutions to the Externality Problem: Pigou and Coase
		17.5 Modern Solutions for the Externality Problem:Markets for Pollution Rights
		17.6 Modern Solutions for the Externality Problem: Cap and Trade
		17.7 A Solved Problem
		Exercises
18 Public Goods
	18.1 Introduction
	18.2 Examples of Public Goods
	18.3 A Simple Model of an Economy with a Public Good
	18.4 The Samuelson Optimality Condition
	18.5 The Free Rider Problem and Voluntary Contribution Mechanisms
	18.6 How to Get Efficiency in Economies with Public Goods
	18.7 A Solved Problem
	Exercises
19 Uncertainty and Expected Utility
	19.1 Introduction and Examples
	19.2 Von Neumann--Morgenstern Expected Utility: Preliminaries
	19.3 Von Neumann--Morgenstern Expected Utility: Assumptionsand Conclusion
	19.4 Von Neumann--Morgenstern Expected Utility: Examples
	19.5 A Solved Problem
	Exercises
20 Uncertainty and Asymmetric Information
	20.1 Introduction
	20.2 When Sellers Know More Than Buyers: The Market for ``Lemons''
	20.3 When Buyers Know More Than Sellers: A Market forHealth Insurance
	20.4 When Insurance Encourages Risk Taking: Moral Hazard
	20.5 The Principal--Agent Problem
	20.6 What Should Be Done about Market Failures Causedby Asymmetric Information
	20.7 A Solved Problem
	Exercises
Index