Principles of Microeconomics

Cover (Principles of Microeconomics)
Front Matter
	Half Title
	Title Page
	Copyright
	Dedication
	Brief Contents
	Contents
	Preface
	Acknowledgments
	About the Authors
Part I - Introduction
	1 - Five Foundations of Economics
		What Is Economics?
		What Are Five Foundations of Economics?
		Conclusion
	2 - Model Building and Gains from Trade
		How Do Economists Study the Economy?
		What Is a Production Possibilities Frontier?
		What Are the Benefits of Specialization and Trade?
		What Is the Trade-off between Having More Now and Having More Later?
		Conclusion
		Appendix 2A: Graphs in Economics
		Graphs That Consist of One Variable
		Graphs That Consist of Two Variables
		Cautions in Interpreting Numerical Graphs
Part II - The Role of Markets
	3 - The Market at Work: Supply and Demand
		What Are the Fundamentals of Markets?
		What Determines Demand?
		What Determines Supply?
		How Do Supply and Demand Interact to Create Equilibrium
		Conclusion
		Appendix 3A: Changes in Both Demand and Supply
	4 - Elasticity
		What Is the Price Elasticity of Demand, and What Are Its Determinants?
		How Do Changes in Income and the Prices of Other Goods Affect Elasticity?
		What Is the Price Elasticity of Supply?
		How Do the Price Elasticities of Demand and Supply Relate to Each Other?
		Conclusion
	5 - Market Outcomes and Tax Incidence
		What Are Consumer Surplus and Producer Surplus?
		When Is a Market Efficient?
		Why Do Taxes Create Deadweight Loss in Otherwise Efficient Markets?
		Conclusion
	6 - Price Controls
		When Do Price Ceilings Matter?
		What Effects Do Price Ceilings Have on Economic Activity?
		When Do Price Floors Matter?
		What Effects Do Price Floors Have on Economic Activity?
		Conclusion
	7 - Market Inefficiencies: Externalities and Public Goods
		What Are Externalities, and How Do They Affect Markets?
		What Are Private Goods and Public Goods?
		What Are the Challenges of Providing Nonexcludable Goods?
		Conclusion
Part III - The Theory of the Firm
	8 - Business Costs and Production
		How Are Profits and Losses Calculated?
		How Much Should a Firm Produce?
		What Costs Do Firms Consider in the Short Run and the Long Run?
		Conclusion
	9 - Firms in a Competitive Market
		How Do Competitive Markets Work?
		How Do Firms Maximize Profits?
		What Does the Supply Curve Look Like in Perfectly Competitive Markets?
		Conclusion
	10 - Understanding Monopoly
		How Are Monopolies Created?
		How Much Do Monopolies Charge, and How Much Do They Produce?
		What Are the Problems with, and Solutions for, Monopoly?
		Conclusion
	11 - Price Discrimination
		What Is Price Discrimination?
		How Is Price Discrimination Practiced?
		Conclusion
	12 - Monopolistic Competition and Advertising
		What Is Monopolistic Competition?
		What Are the Differences among Monopolistic Competition, Competitive Markets, and Monopoly?
		Why Is Advertising Prevalent in Monopolistic Competition?
		Conclusion
	13 - Oligopoly and Strategic Behavior
		What Is Oligopoly?
		How Does Game Theory Explain Strategic Behavior?
		How Do Government Policies Affect Oligopoly Behavior?
		What Are Network Externalities?
		Conclusion
		Appendix 13A: Two Alternative Theories of Pricing Behavior
		The Kinked Demand Curve
		Price Leadership
Part IV - Labor Markets and Earnings
	14 - The Demand and Supply of Resources
		What Are the Factors of Production?
		Where Does the Demand for Labor Come From?
		Where Does the Supply of Labor Come From?
		What Are the Determinants of Demand and Supply in the Labor Market?
		What Role Do Land and Capital Play in Production?
		Conclusion
	15 - Income, Inequality, and Poverty
		What Are the Determinants of Wages?
		What Causes Income Inequality?
		How Do Economists Analyze Poverty?
		Conclusion
Part V - Special Topics in Microeconomics
	16 - Consumer Choice
		How Do Economists Model Consumer Satisfaction?
		How Do Consumers Optimize Their Purchasing Decisions?
		What Is the Diamond-Water Paradox?
		Conclusion
		Appendix 16A: Indifference Curve Analysis
		Indifference Curves
		Properties of Indifference Curves
		Using Indifference Curves to Illustrate the Consumer Optimum
		Conclusion
	17 - Behavioral Economics and Risk Taking
		How Do Economists Explain Irrational Behavior?
		What Is the Role of Risk in Decision-Making?
		Conclusion
	18 - Health Insurance and Health Care
		What Are the Important Issues in the Healthcare Industry?
		How Does Asymmetric Information Affect Healthcare Delivery?
		How Do Demand and Supply Contribute to High Medical Costs?
		How Do Incentives Influence the Quality of Health Care?
		Conclusion
	19 - International Trade
		Is Globalization for Real?
		How Does International Trade Help the Economy?
		What Are the Effects of Tariffs and Quotas?
		Conclusion
Glossary
Credits
Index