We wrote this book, Microeconomics, because we believe that students need to be exposed to the new topics that have come to play a central role in microeconomics over the years, topics such as game theory and competitive strategy, the roles of uncertainty and information, and the analysis of pricing by firms with market power. We also felt that students need to be shown how microeconomics can help us to understand what goes on in the world and how it can be used as a practical tool for decision making. Microeconomics is an exciting and dynamic subject, but students need to be given an appreciation of its relevance and usefulness. They want and need a good understanding of how microeconomics can actually be used outside the classroom.
To respond to these needs, the seventh edition of Microeconomics provides a treatment of microeconomic theory that stresses its relevance and application to both managerial and public policy decision making. This applied emphasis is accomplished by including 118 extended examples that cover such topics as the analysis of demand, cost, and market efficiency; the design of pricing str4ategies; investment and production decisions; and public policy analysis. Because of the importance that we attach to these examples, they are included in the flow of the text. (A complete list is included on the endpapers inside the front cover.)
1. Introduction : markets and prices
2. Producers, consumers, and competitive markets
3. Market structure and competitive strategy
4. Information, market failure, and the role of government
- Appendix : the basics of regression
- Glossary
- Answers to selected exercises
- Photo credits
- Index