Microeconomics

Microeconomics (and What It Can Teach Us about Rosa and Lauren) · This Book (and How Rosa and Lauren Would See It)

Markets and Models · Demand · Supply · Market Equilibrium

Consumer and Producer Surplus: Who Benefits in a Market? · Price Regulations · Quantity Regulations · Taxes

The Consumer’s Preferences and the Concept of Utility · Indifference Curves · The Consumer’s Income and the Budget Constraint · Combining Utility, Income, and Prices: What Will the Consumer Consume?

How Income Changes Affect an Individual’s Consumption Choices · How Price Changes Affect Consumption Choices · Consumer Responses to Price Changes: Substitution and Income Effects · The Impact of Changes in Another Good’s Price: Substitutes and Complements

The Basics of Production · Production in the Short Run · Production in the Long Run · The Firm’s Cost-Minimization Problem

Costs That Matter for Decision Making: Opportunity Costs · Costs That Do Not Matter for Decision Making: Sunk Costs · Costs and Cost Curves · Average and Marginal Costs

Market Structures and Perfect Competition in the Short Run · Profit Maximization in a Perfectly Competitive Market · Perfect Competition in the Short Run · Perfectly Competitive Industries in the Long Run

Sources of Market Power: Barriers to Entry · Market Power and Marginal Revenue · Profit Maximization for a Firm with Market Power · How a Firm with Market Power Reacts to Market Changes

The Basics of Pricing Strategy · Direct Price Discrimination I: Perfect (First-Degree) Price Discrimination · Direct Price Discrimination II: Segmenting (Third-Degree Price Discrimination) · Indirect (Second-Degree) Price Discrimination

What Does Equilibrium Mean in an Oligopoly? · Oligopoly with Identical Goods: Collusion and Cartels · Oligopoly with Identical Goods: Bertrand Competition · Oligopoly with Identical Goods: Cournot Competition

What Is a Game? · Nash Equilibrium in Simultaneous Games · Repeated Games · Sequential Games

Demand in a Perfectly Competitive Factor Market · Supply in a Perfectly Competitive Factor Market · Labor Market Equilibrium · The Labor Market in the Long Run

Present Discounted Value Analysis · Evaluating Investment Choices · The Correct Interest Rate to Use, and Capital Markets · Evaluating Risky Investments

General Equilibrium Effects in Action · General Equilibrium: Equity and Efficiency · Efficiency in Markets: Exchange Efficiency · Efficiency in Markets: Input Efficiency

The Lemons Problem and Adverse Selection · Moral Hazard · Asymmetric Information in Principal–Agent Relationships · Signaling to Solve Asymmetric Information Problems

Externalities · Correcting Externalities · The Coase Theorem: Free Markets Addressing Externalities on Their Own · Public Goods

When Human Beings Fail to Act the Way Economic Models Predict · Does Behavioral Economics Mean Everything We’ve Learned Is Wrong? · Testing Economic Theories with Data: Experimental Economics · Conclusions and the Future of Microeconomics