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Microeconomics With Calculus

by: Binger, Brian R.; Hoffman, Elizabeth

Microeconomics With Calculus

by: Binger, Brian R.; Hoffman, Elizabeth

ISBN 13:
9780321012258
ISBN 10:
0321012259
Edition: 2nd
Format: Paperback
Copyright: 01/01/1998
Publisher: Addison Wesley

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Summary

Microeconomics with Calculus integrates the graphical and mathematical development of basic microeconomic theory and stresses the relationships between the two approaches. Numerous numerical, mathematical, and graphical examples relating to real-world economic decisions and policy issues appear throughout, providing a meaningful context for microeconomic students.

INTRODUCTION

xxi

Chapter 1 BASIC MATHEMATICAL CONCEPTS

(27)

1.1 What You Should Learn from This Chapter

(1)

1.2 Functions

(4)

1.3 Functions of One Independent Variable: Slopes and Derivatives

(6)

1.4 Functions of Two or More Independent Variables: Partial and Total Derivatives

(7)

1.5 Second Partial Derivatives and Second Total Differentials

(1)

1.6 More Worked Problems Involving Partial and Total Derivatives

(1)

1.7 Simple Integration

(4)

1.8 Review of Key Concepts

(1)

1.9 Questions for Discussion

(1)

1.10 Problems

(1)

1.11 Appendix: Review of Differentiation Rules and Simple Formulas

(3)

Chapter 2 UNCONSTRAINED MAXIMIZATION AND MINIMIZATION

(28)

2.1 What You Should Learn from This Chapter

(1)

2.2 Functions of One Independent Variable: Unconstrained Maximization and Minimization

(5)

2.3 Total, Average, and Marginal Functions of One Variable

(7)

2.4 Functions of Several Independent Variables: Unconstrained Maximization and Minimization

(5)

2.5 One Variable Comparative Statics, Implicit Functions, and the Unconstrained Envelope Theorem

(4)

2.6 More Worked Problems Involving Optimization of Functions of Two Independent Variables

(2)

2.7 Review of Key Concepts

(1)

2.8 Problems

(1)

2.9 Appendix: Relationships Among the Second Total Differential and the Second Partial and Cross Partial Derivatives for Maxima and Minima for Two-variable Functions

(2)

Chapter 3 CONSTRAINED OPTIMIZATION

(36)

3.1 What You Should Learn from This Chapter

(1)

3.2 One-variable Constrained Optimization

(1)

3.3 One-variable Constrained Optimization with a Nonnegativity Constraint

(2)

3.4 Two-variable Problems with Equality Constraints

(6)

3.5 Techniques for Solving Two-variable Constrained Optimization Problems

(4)

3.6 The Lagrange Method

(10)

3.7 Nonnegativity and Inequality Constraints: Kuhn-Tucker Conditions for Constrained Optimization with Two Choice Variables and One Constraint

(7)

3.8 More Worked Problems Involving Constrained Optimization

(2)

3.9 Review of Key Concepts

(2)

3.10 Problems

(1)

3.11 Appendix: Second-order Conditions for Two-variable Constrained Optimization

(2)

Chapter 4 INTRODUCTION TO ECONOMIC THEORY AND THE MARKET ECONOMY

(15)

4.1 What You Should Learn from This Chapter

(1)

4.2 The Role of Models in Economics

(3)

4.3 The Economic Problem: Resource Allocation

(2)

4.4 The Market Economy

(4)

4.5 The Model of Perfect Competition

101

(1)

4.6 Monopoly, Externalities, and Public Goods

102

(2)

4.7 Review of Key Concepts

104

(1)

4.8 Questions for Discussion

105

(2)

Chapter 5 CONSUMER PREFERENCE THEORY

107

(29)

5.1 What You Should Learn from This Chapter

107

(1)

5.2 Cardinal Versus Ordinal Utility: An Historical Introduction

107

(2)

5.3 The Modern Theory of Consumer Preference

109

(9)

5.4 Two Utility Functions That Satisfy Axioms 1-6

118

(1)

5.5 Utility Maximization

119

(4)

5.6 The Revealed Preference Approach

123

(2)

5.7 Lump-sum and Per-unit Taxes and Subsidies: An Application of Revealed Preference

125

(5)

5.8 Using Revealed Preference to Derive Indifference Curves: A Case Study from Experiments with Rats

130

(2)

5.9 Review of Key Concepts

132

(2)

5.10 Questions for Discussion

134

(1)

5.11 Problems

134

(1)

5.12 Logical and Mathematical Applications

135

(1)

Chapter 6 INTRODUCTION TO INDIVIDUAL CONSUMER AND MARKET DEMAND THEORY

136

(24)

6.1 What You Should Learn from This Chapter

136

(1)

6.2 Consumer Demand Functions: Graphical Development

136

(9)

6.3 The Ordinary Demand Function: Changes in Demand and Changes in Quantity Demanded

145

(1)

6.4 Generalized Demand Functions

146

(5)

6.5 Cobb-Douglas Utility Functions

151

(2)

6.6 Market Demand Functions

153

(1)

6.7 Changes in the Parameters of Market Demand: The Case of the Baby Boom

154

(2)

6.8 Another Worked Problem: Finding the Generalized Demand Function

156

(1)

6.9 Review of Key Concepts

157

(1)

6.10 Questions for Discussion

158

(1)

6.11 Problems

158

(1)

6.12 Logical and Mathematical Applications

159

(1)

Chapter 7 ELASTICITY OF INDIVIDUAL AND MARKET DEMAND FUNCTIONS

160

(14)

7.1 What You Should Learn from This Chapter

160

(1)

7.2 Elasticity Defined

160

(3)

7.3 Elasticity of Demand Along Linear and Nonlinear Demand Curves

163

(2)

7.4 Elasticity and Total Revenue

165

(3)

7.5 Total, Average, and Marginal Revenue Along Nonlinear Demand Curves

168

(1)

7.6 Examples of Linear and Nonlinear Demand Functions

168

(1)

7.7 The Farm Problem in Historical Perspective: The Effect of Price and Income Inelasticity

169

(1)

7.8 How Estimates of Elasticity Are Used for Policy Analysis

170

(1)

7.9 Review of Key Concepts

171

(1)

7.10 Questions for Discussion

172

(1)

7.11 Problems

172

(1)

7.12 Logical and Mathematical Applications

173

(1)

Chapter 8 COMPENSATED DEMAND FUNCTIONS AND INCOME AND SUBSTITUTION EFFECTS

174

(41)

8.1 What You Should Learn from This Chapter

174

(1)

8.2 The Compensated Demand Function

175

(2)

8.3 Income and Substitution Effects

177

(6)

8.4 The Expenditure Minimization Problem

183

(3)

8.5 Deriving Compensated Demand Functions and the Expenditure Function: An Example

186

(5)

8.6 Mathematical Treatment of Income and Substitution Effects

191

(1)

8.7 The Slutsky Equation

192

(4)

8.8 Substitution Elasticity and the Size of the Substitution Effect

196

(3)

8.9 Consumer's Surplus Analysis

199

(5)

8.10 Practical Applications of Consumer's Surplus Analysis

204

(5)

8.11 Another Worked Problem Involving Expenditure Minimization

209

(1)

8.12 Review of Key Concepts

210

(2)

8.13 Questions for Discussion

212

(1)

8.14 Problems

212

(1)

8.15 Logical and Mathematical Applications

213

(2)

Chapter 9 EFFICIENCY AND TRADE: AN APPLICATION OF CONSUMER DEMAND THEORY

215

(27)

9.1 What You Should Learn in This Chapter

215

(1)

9.2 Efficiency

216

(7)

9.3 Trade in the Edgeworth Box

223

(9)

9.4 Solving for a Competitive Equilibrium in a Two-person, Two-good Economy: An Example

232

(3)

9.5 The Distributional Problem

235

(3)

9.6 Other Resource Allocation Processes and Pareto Optimality

238

(1)

9.7 Review of Key Concepts

239

(1)

9.8 Questions for Discussion

240

(1)

9.9 Problems

241

(1)

Chapter 10 PRODUCTION THEORY

242

(19)

10.1 What You Should Learn from This Chapter

242

(1)

10.2 The Production Function

242

(4)

10.3 Recovering Isoquants by Observing Production Choices

246

(3)

10.4 Output Expansion in the Long Run

249

(1)

10.5 Output Expansion in the Short Run

250

(5)

10.6 Diminishing Returns

255

(2)

10.7 Review of Key Concepts

257

(1)

10.8 Questions for Discussion

258

(1)

10.9 Problems

258

(1)

10.10 Logical and Mathematical Applications

258

(1)

10.11 Appendix: Proof of the Proposition That Constant Returns Imply Diminishing Marginal Products

259

(2)

Chapter 11 COST FUNCTIONS

261

(41)

11.1 What You Should Learn from This Chapter

261

(1)

11.2 Economic Costs

262

(2)

11.3 Cost Minimization

264

(2)

11.4 Elasticity of Substitution

266

(2)

11.5 Long-run Cost Functions

268

(3)

11.6 Long-run Cost Functions and Returns to Scale

271

(5)

11.7 Using the Cobb-Douglas Production Function: One Way Economists Estimate Long-run Cost Functions

276

(3)

11.8 Short-run Costs with One Variable Input

279

(9)

11.9 Short-run Costs with Two or More Variable Inputs

288

(2)

11.10 Multiproduct Firms

290

(2)

11.11 The Relationship Between Short-run and Long-run Costs

292

(6)

11.12 Review of Key Concepts

298

(2)

11.13 Questions for Discussion

300

(1)

11.14 Problems

300

(1)

11.15 Logical and Mathematical Applications

301

(1)

Chapter 12 PROFIT MAXIMIZATION BY A COMPETIVE FIRM: SUPPLY OF GOODS AND DEMAND FOR INPUTS

302

(28)

12.1 What You Should Learn from This Chapter

302

(1)

12.2 Competitive Profit Maximization and Short-run Supply

302

(3)

12.3 Changes in Short-run Supply

305

(6)

12.4 Profits and Short-run Shutdown

311

(4)

12.5 Short-run Demand for One Variable Input

315

(5)

12.6 Sort-run Input Demand with Two or More Variable Inputs

320

(1)

12.7 Shifts in Short-run Input Demand Functions

321

(1)

12.8 The Computer Software Company's Short-run Supply Curve and Short-run Labor Demand Curve

322

(3)

12.9 "Sunk" Costs and Economic Decision Making

325

(1)

12.10 Review of Key Concepts

326

(2)

12.11 Questions for Discussion

328

(1)

12.12 Problems

329

(1)

12.13 Logical and Mathematical Applications

329

(1)

Chapter 13 COMPETITIVE MARKET SUPPLY, MARKET EQUILIBRIUM, AND COMPARATIVE STATICS

330

(30)

13.1 What You Should Learn from This Chapter

330

(1)

13.2 Short-run Market Supply Functions

330

(2)

13.3 Short-run Competitive Equilibrium

332

(3)

13.4 Experimental Markets: An Illustration of Competitive Equilibrium

335

(2)

13.5 From Short-run to Long-run Equilibrium

337

(6)

13.6 Long-run Market Supply Under Competition

343

(3)

13.7 Short-run and Long-run Adjustments to Changes in Demand and Supply Parameters: Comparative Statics in Competitive Markets

346

(3)

13.8 The Comparative Statics and Incidence of a Per-unit Tax

349

(5)

13.9 Deadweight Loss from a Per-unit Tax

354

(2)

13.10 Review of Key Concepts

356

(2)

13.11 Questions for Discussion

358

(1)

13.12 Problems

358

(1)

13.13 Logical and Mathematical Applications

359

(1)

Chapter 14 PRODUCTION EFFICIENCY AND GENERAL EQUILIBRIUM OF COMPETITIVE MARKETS

360

(31)

14.1 What You Should Learn from This Chapter

360

(1)

14.2 Efficiency in Production

360

(10)

14.3 Utility Maximization over the Production Possibilities Frontier

370

(6)

14.4 Pareto Optimality with More Than One Consumer

376

(3)

14.5 General Equilibrium in a Competitive Economy

379

(5)

14.6 Comparative Statics in a General Equilibrium Framework

384

(3)

14.7 Review of Key Concepts

387

(2)

14.8 Questions for Discussion

389

(1)

14.9 Problems

389

(1)

14.10 Logical and Mathematical Applications

390

(1)

Chapter 15 MONOPOLY

391

(29)

15.1 What You Should Learn from This Chapter

391

(1)

15.2 Profit-maximizing Output and Input Decisions Under Monopoly

392

(6)

15.3 Welfare Loss from Monopoly

398

(4)

15.4 Price Discrimination

402

(6)

15.5 Peak-load Pricing

408

(2)

15.6 Natural Monopoly and Regulation

410

(6)

15.7 Review of Key Concepts

416

(1)

15.8 Questions for Discussion

417

(1)

15.9 Problems

418

(1)

15.10 Logical and Mathematical Applications

419

(1)

Chapter 16 OLIGOPOLY AND IMPERFECT COMPETITION

420

(35)

16.1 What You Should Learn from This Chapter

420

(1)

16.2 Interdependent Firms and Nonzero Sum Games

421

(6)

16.3 The Cournot Duopoly Model and Extensions

427

(7)

16.4 Conjectural Variation

434

(4)

16.5 Consistent Conjectural Variations

438

(1)

16.6 The Stackelberg Model

439

(1)

16.7 The Model of Monopolistic Competition

440

(5)

16.8 The Theory of Contestable Markets

445

(1)

16.9 Repeated Games and Tacit Collusion

446

(1)

16.10 Monopoly and Oligopoly Experiments

447

(3)

16.11 Review of Key Concepts

450

(3)

16.12 Questions for Discussion

453

(1)

16.13 Problems

453

(1)

16.14 Logical and Mathematical Applications

453

(2)

Chapter 17 TIME ALLOCATION, LABOR SUPPLY, AND LABOR MARKETS

455

(27)

17.1 What You Should Learn from This Chapter

455

(1)

17.2 The Simple Model of Time Allocation and Labor Supply

455

(7)

17.3 The Backward-bending Labor Supply Curve

462

(2)

17.4 Overtime Pay: An Application of the Labor Supply Model

464

(1)

17.5 The Household Theory of the Allocation of Time

465

(3)

17.6 Competitive Labor Market Equilibria

468

(1)

17.7 Wage Differentials in a Competitive Market

469

(2)

17.8 Imperfect Labor Markets: Monopsony

471

(2)

17.9 Economic Rent and the Welfare Implications of Monopsony

473

(2)

17.10 Unions

475

(3)

17.11 Unique Factor Endowments

478

(1)

17.12 Review of Key Concepts

478

(2)

17.13 Questions for Discussion

480

(1)

17.14 Problems

481

(1)

17.15 Logical and Mathematical Applications

481

(1)

Chapter 18 INTERTEMPORAL DECISIONS AND COMPETITIVE CAPITAL MARKETS

482

(29)

18.1 What You Should Learn from This Chapter

482

(1)

18.2 The Two-period Intertemporal Decision Model

483

(6)

18.3 The Supply Function for Savings

489

(3)

18.4 Discounted Present Value

492

(3)

18.5 Determining the Equilibrium Rate of Interest

495

(2)

18.6 Human Capital and the Demand for Educational Services

497

(2)

18.7 Exploitation of Nonrenewable Natural Resources

499

(2)

18.8 Renewable Natural Resources: Trees

501

(3)

18.9 Optimal Management of a Fishery

504

(3)

18.10 Review of Key Concepts

507

(2)

18.11 Questions for Discussion

509

(1)

18.12 Problems

509

(1)

18.13 Logical and Mathematical Applications

510

(1)

Chapter 19 UNCERTAINTY: THE BASICS

511

(27)

19.1 What You Should Learn from This Chapter

511

(1)

19.2 Introduction to Probability Theory and Risk Preference

512

(4)

19.3 Expected Utility and the von Neumann-Morgenstern Utility Function

516

(5)

19.4 Insurance Markets

521

(5)

19.5 Futures Contracts and Other Long-term Contracts as Insurance

526

(1)

19.6 Contingent Claims and the State-preference Model

527

(7)

19.7 Review of Key Concepts

534

(2)

19.8 Questions for Discussion

536

(1)

19.9 Problems

537

(1)

19.10 Logical and Mathematical Applications

537

(1)

Chapter 20 APPLICATIONS OF UNCERTAINTY MODELS

538

(24)

20.1 What You Should Learn from This Chapter

538

(1)

20.2 Moral Hazard in Insurance Markets

539

(5)

20.3 Adverse Selection

544

(4)

20.4 The Principal-Agent Problem

548

(3)

20.5 Risk Sharing and the Principal-Agent Problem in Labor Contracts

551

(2)

20.6 The Market for Lemons

553

(2)

20.7 Reputations, Signaling, and Warranties

555

(3)

20.8 Review of Key Concepts

558

(2)

20.9 Questions for Discussion

560

(2)

Chapter 21 EXTERNALITIES, PUBLIC GOODS, AND PUBLIC DECISION MAKING

562

(46)

21.1 What You Should Learn from This Chapter

562

(1)

21.2 Optimal Levels of Externalities When Only Firms Are Affected by the Externalities

563

(5)

21.3 Optimal Allocation of an Externality That Affects Consumer Utility

568

(2)

21.4 Optimal Provision of Pure Public Goods

570

(6)

21.5 Externalities and Public Goods in Competitive Markets

576

(1)

21.6 Pigouvian Taxes and Lindahl Prices

577

(3)

21.7 Problems with the Implementation of Optimal Taxes

580

(2)

21.8 Evidence on Free Riding

582

(2)

21.9 Coasian Bargaining

584

(5)

21.10 Evidence on the Usefulness of the Coase Theorem

589

(4)

21.11 Incentive-compatible Allocation Mechanisms

593

(5)

21.12 Experiments on Incentive-compatible Allocation Mechanisms

598

(2)

21.13 The Arrow Problem in Public Decision Making

600

(3)

21.14 Review of Key Concepts

603

(3)

21.15 Questions for Discussion

606

(1)

21.16 Problems

607

(1)

21.17 Logical and Mathematical Applications

607

(1)

ANSWERS TO SELECTED ODD-NUMBERED PROBLEMS

608

(5)

AUTHOR INDEX

613

(2)

SUBJECT INDEX

615

Amazon no longer offers textbook rentals. We do!

Microeconomics With Calculus

Microeconomics With Calculus

9780321012258

0321012259

Summary

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