Exchange and Production: Competition, Coordination, & Control

Contents	7
	Preface	5
	Chapter One: SCARCITY, COMPETITION, AND SOCIAL CONTROL	14
		The Magnitude of the Task of Economic Control	15
		Universal Scarcity	15
		Costs Are the nest Forsaken Alternatives	17
		The Problem of Organizing Production	18
		Methods of Organizing Economic Activity	(18 XYZ 258.5672 308.0711 null)
			COMMAND SOCIETIES	(18 XYZ 257.6663 308.0711 null)
			SOCIALIST ECONOMIES	(19 XYZ 45.04655 596.3825 null)
			CAPITALIST OR MARKET ECONOMIES	(19 XYZ 45.94748 596.3825 null)
		Competition, Coordination, and Control	(20 XYZ 50.45214 null null)
			VIOLENCE AS A FORM OF COMPETITION	(20 XYZ 261.27 595.4843 null)
			CONTROL BY RELIGION, LAW, AND OSTRACISM	(21 XYZ 46.84842 592.7899 null)
		Controls, Competitive Criteria, and Survival Traits	(21 XYZ 254.9635 592.7899 null)
		Attributes of Economic Analysis	(22 XYZ 45.94748 590.9935 null)
		Summary	(23 XYZ 263.9728 592.7899 null)
		Questions	(24 XYZ 43.24469 595.4843 null)
	Chapter Two: CONSUMER DEMAND	26
		The Unit of Analysis Is the Individual	26
		Numerical Illustrations	28
		The First Law of Demand	28
		Demand versus Amount Demanded	29
		Personal Use Valuations and Expenditures	30
		The Paradox of Value	32
		Needs or Amounts Demanded	33
		Marginal Revenue	34
		Price Change versus Other Factors Affecting Demand	35
		Meaning of Change in Price and Change in Quantity	36
		Elasticity of Demand to a Price Change	38
		The Second Law of Demand	41
		Illustrations of the Laws of Demand	42
		Estimates of Elasticities of Demand	45
		Income Effects on Demand	66
		Price Effect on Wealth and Hence on Demand	47
		Alleged Exceptions to the Laws of Demand	48
		Direct Evidence of Validity of Laws of Demand	49
		Pricing Tactics: A Preview	50
		Utility-Maximizing Behavior	51
		Summary	51
		Questions	52
	Chapter Three: EXCHANGE	58
		Trade without Surplus Goods	58
		Money, Markets, and Middlemen	61
		Open Markets and the Costs of Exchange	63
		Restraints on Open-Market Competition	64
		Ethics of Open-Market Exchange	65
		Freedom: As You Like It	66
		Criticisms of Methodology	67
		Self-Interest	67
		Summary	67
		Questions	67
	Chapter Four: MARKET PRICES AS SOCIAL COORDINATORS	70
		Market Demand	71
		Market Supply and Demand: Graphic Interpretation	72
		Production and Supply	76
		Who Pays a Tax? The Answer by Demand and Supply	77
		Smog Removal and Land Value	81
		Rental and Allocation by Consumer Competition	82
		Price Controls, Shortages, Competition, and Discrimination	83
		The 1975 National Energy Act: Erroneous Economics but Good Politics	86
		Economic Rent	88
		Pareto-Optimal Allocations	89
		Summary	90
		Questions	91
		For Further Study: Futures Markets	94
	Chapter Five: INFORMATION COSTS AND ACHIEVEMENT OF EXCHANGES	100
		Buffer Stocks, Waiting Lines, and Price Responses to Demand Uncertainty	101
		The Illusion That Cost Determines Price	102
		Private-Property Rights	104
		Allocation under Rights Other Than Private Property: Nonprofit, Institutions	108
		Philanthropy	109
		Public Goods	112
		Summary	114
		Questions	115
	Chapter Six: CAPITAL VALUES, FUTURE YIELDS, AND INTEREST	120
		The Magic of Investment Productivity	121
		Illustrative Uses of Capital Value Principles	125
		Annuities	127
		Applications and Examples	128
		Wealth, Interest, Income, and Profits	142
		Capital Valves, Property Rights, and Care of Wealth	143
		Summary	144
		Questions	145
	Chapter Seven: PRODUCTION WITH SPECIALIZATION	148
		Production and Exchange	149
		Gains from Specialization and Cooperation: A Simple Preview	149
		Specialization, Marginal Costs, and Trade	150
		A Two-Person Economy	152
		Achieving Productive Efficiency by Equalizing Marginal Costs	154
		Some Misunderstanding of Costs	162
		Differential Earnings, Ricardian Rents	163
		More Producers: Net Gains or Transfers	164
		Short-Run Price and Output Adjustments: Input Specificity	167
		Monopoly Restraints	168
		Obstacles to Coordinated Specialization: Absence of Markets and Transferable Property Rights	169
		Are Specialization and Efficient Production \"Good	169
		Reprise and Preview	170
		Summary	171
		Questions	172
	Chapter Eight: PRODUCTION BY FIRMS	176
		joint Production	176
		Control, Property Rights, and Incentives	179
		Substitution, Complementarity, and the Demand for Inputs	186
		Summary	191
		Questions	191
	Chapter Nine: BUSINESS FIRMS: OWNERSHIP, CONTROL, AND PROFITS	195
		The Business Firm	195
		The Corporation	197
		Fundamental Sources of Profits	200
		Barriers to Entry or Filters	202
		Business Profits	204
		Misdefinitions of Profits	206
		Summary	207
		Questions	208
		For Further Study: Interpreting Financial Statements	210
	Chapter Ten: PRICE TAKERS\' SUPPLY AND PRICE RESPONSE TO CONSUMER DEMAND	217
		Marginal Revenue Equals Price	218
		Market Supply: Aggregated Supplies from All Firms	223
		Long-Run Supply Response: Entry of New Firms and Equipment	224
		Short Runs and Long Runs	228
		Consequences of Wealth-Maximizing Response to Market Demand	229
		Some Pricing Tactics	240
		Derived Demand	241
		Review and Prologue	243
		Summary	244
		Questions	245
	Chapter Eleven: PRICE SEARCHERS	249
		Market-Power Price Searcher	249
		Price and Marginal Revenue of a Price Searcher	251
		Demand Changes and Effects on Output and Price	254
		Seller\'s Search for Wealth-Maximizing Price. Output, and Quality	256
		Survival of Best of Actual Activity	258
		Monopoly: Open- and Closed-Market Price Searchers	258
		Some Price Searcher Pricing Systems	259
		Effects of Different Pricing Systems	268
		Summary	269
		Questions	270
	Chapter Twelve: COMPETITION AMONG THE FEW	275
		Coalitions, Collusion, Cartels, and Firms: An Exercise in Names	275
		Collusion among Producers	276
		Oligopolies	283
		The Law and Market Competition	284
		Common Misinterpretations of Modern Business Actions	285
		Summary	291
		Questions	292
	Chapter Thirteen: RESTRICTED ACCESS TO MARKETS	295
		Political Restraints on Consumers\' Market	295
		Public Utilities	302
		Patents and Copyrights	304
		Monopoly Rents: Creation and Dissipation	305
		Summary	307
		Questions	307
	Chapter Fourteen: INCOME FROM PERSONAL SERVICES	311
		Productive Resources and Incomes	311
		Supply of Labor	312
		Never Too Few Jobs	316
		Income Differences	321
		Observed Differences in Personal Income and Wealth	323
		Patterns by Family Size	324
		Why Incomes Differ	325
		The Poor	330
		Technological Progress and Jobs and Wages	332
		Summary	334
		Questions	335
	Chapter Fifteen: LABOR-MARKET INSTITUTIONS	337
		Labor Unions	337
		Employee-Employer Bargaining Power	340
		Labor-Union Objectives	340
		Do Unions Raise Union Wages	341
		Legal Restrictions on Open Markets for Labor	346
		Closed Monopoly: Buyers Close a Market to Competing Buyers	349
		Summary	351
		Questions	352
	Chapter Sixteen: WEALTH - SAVING AND INVESTING	355
		Sources of Wealth	356
		Property Rights, Growth, and Conservation	357
		Investment Activity	359
		Demand for Investment: The Most Profitable Pace of Investment	360
		Lending	360
		Interest Rate and Quantity versus Change in Quantity of Money	367
		Competition in the Capital Markets	368
		Legal Restraints on Access to Loan and Capital Markets	370
		Personal Investment Principles	372
		Summary	375
		Questions	377
	Chapter Seventeen: UNEMPLOYMENT AND IDLE RESOURCES	381
		Numbers of Employed and Unemployed in the United States	383
		Who Are the Unemployed	385
		Trends in Unemployment	389
		Changes in Structures and Aggregate Demand	390
		Fluctuation of Aggregate Demand	393
		Economic Fluctuation and Full Employment	394
		International Comparisons	395
		Summary	395
		Questions	396
	Chapter Eighteen: THE DOMESTIC AND POLITICAL ECONOMIES	399
		The Nonmarket Domestic Economy	399
		Measuring National Income: Value-Added	400
		The Scope of Government Economic Activity	404
		Public Goods and Government Action	409
		Government as an Economic Stabilizer	410
		Summary	413
		Questions	414
	Chapter Nineteen: INFLATION	415
		What is Inflation	415
		What Causes Inflation	417
		Distinguishing True from Apparent Causes of Inflation	421
		Inflationary Redistribution of Wealth	422
		Inflation: Taxation without Legislation	425
		Living with Inflation	426
		Dealing with Inflation	429
		Anti-inflation Monetary Reforms	431
		Transient Effects of Changing Inflation Rate on Employment and Production	431
		What Can You Do to Reduce Inflation	432
		Recessions Can Occur During Inflation	432
		Summary	433
		Questions	435
		For Further Study: Creation of Money by Bank Deposits and Loans	437
	Appendix: Using Math and Graphs	441
	Answers to Selected Questions	449
	Glossary	473
	Index	479