Microeconomic Theory: Basic Principles and Extensions

Theoretical Models · Verification of Economic Models · General Features of Economic Models · Structure of Economic Models

Maximization of a Function of One Variable · Functions of Several Variables · Maximization of Functions of Several Variables · The Envelope Theorem

Axioms of Rational Choice · Utility · Trades and Substitution · The Mathematics of Indifference Curves

An Initial Survey · The Two-Good Case: A Graphical Analysis · The n-Good Case · Indirect Utility Function

Demand Functions · Changes in Income · Changes in a Good’s Price · The Individual’s Demand Curve

The Two-Good Case · Substitutes and Complements · Net (Hicksian) Substitutes and Complements · Substitutability with Many Goods

Mathematical Statistics · Fair Gambles and the Expected Utility Hypothesis · Expected Utility · The Von Neumann–Morgenstern Theorem

Basic Concepts · Prisoners’ Dilemma · Nash Equilibrium · Mixed Strategies

Marginal Productivity · Isoquant Maps and the Rate of Technical Substitution · Returns to Scale · The Elasticity of Substitution

Definitions of Costs · Relationship between Profit Maximization and Cost Minimization · Cost-Minimizing Input Choices · Cost Functions

The Nature and Behavior of Firms · Profit Maximization · Marginal Revenue · Short-Run Supply by a Price-Taking Firm

Market Demand · Timing of the Supply Response · Pricing in the Very Short Run · Short-Run Price Determination

Perfectly Competitive Price System · A Graphical Model of General Equilibrium with Two Goods · Comparative Statics Analysis · General Equilibrium Modeling and Factor Prices

Barriers to Entry · Profit Maximization and Output Choice · Misallocated Resources under Monopoly · Comparative Statics Analysis of Monopoly

Short-Run Decisions: Pricing and Output · Bertrand Model · Cournot Model · Capacity Constraints

Allocation of Time · A Mathematical Analysis of Labor Supply · Market Supply Curve for Labor · Labor Market Equilibrium

Capital and the Rate of Return · Determining the Rate of Return · Pricing of Risky Assets · The Firm’s Demand for Capital

Complex Contracts as a Response to Asymmetric Information · Principal-Agent Model · Hidden Actions · Owner-Manager Relationship

Defining Externalities · Externalities and Allocative Inefficiency · Partial-Equilibrium Model of Externalities · Solutions to Negative Externality Problems