Principles of Microeconomics

Transcription

1 GLOBAL EDITION Principles of Microeconomics ELEVENTH EDITION Karl E. Case Ray C. Fair Sharon M. Oster

2 ELEVENTH EDITION Principles of Microeconomics GLOBAL EDITION

3 Principles of Microeconomics, Global Edition - PDF - PDF - PDF Table of Contents Cover Title Page Contents PART I Introduction To Economics 1 The Scope and Method ofeconomics Why Study Economics? To Learn a Way of Thinking To Understand Society To Be an Informed Citizen The Scope of Economics Microeconomics and Macroeconomics ECONOMICS IN PRACTICE ipod and the World The Diverse Fields of Economics The Method of Economics Theories and Models ECONOMICS IN PRACTICE Does Your RoommateMatter for Your Grades? Economic Policy An Invitation Appendix: How to Read and Understand Graphs 2 The Economic Problem: Scarcityand Choice Scarcity, Choice, and Opportunity Cost Scarcity and Choice in a One-PersonEconomy Scarcity and Choice in an Economy of Twoor More ECONOMICS IN PRACTICE Nannies andopportunity Cost The Production Possibility Frontier The Economic Problem ECONOMICS IN PRACTICE Trade Offs among Highand Middle Income Countries in the Middle East Economic Systems and the Role ofgovernment Command Economies Laissez-Faire Economies: The Free Market Mixed Systems, Markets, and Governments Looking Ahead 3 Demand, Supply, and MarketEquilibrium

4 Firms and Households: The Basic Decision-Making Units Input Markets and Output Markets: The CircularFlow Demand in Product/Output Markets Changes in Quantity Demanded versus Changes indemand Price and Quantity Demanded: The Law ofdemand Other Determinants of Household Demand ECONOMICS IN PRACTICE Have You Bought ThisTextbook? Shift of Demand versus Movement Along ademand Curve From Household Demand to Market Demand Supply in Product/Output Markets Price and Quantity Supplied: The Law ofsupply Other Determinants of Supply Shift of Supply versus Movement Along a SupplyCurve From Individual Supply to Market Supply Market Equilibrium Excess Demand Excess Supply Changes in Equilibrium ECONOMICS IN PRACTICE Coffee or Tea? Demand and Supply in Product Markets: AReview Looking Ahead: Markets and the Allocation ofresources ECONOMICS IN PRACTICE Why Do the Prices ofdelicacies and Goodies Increase Prior to Chinese NewYear? 4 Demand and SupplyApplications The Price System: Rationing and AllocatingResources Price Rationing Constraints on the Market and AlternativeRationing Mechanisms ECONOMICS IN PRACTICE Why Is My Hotel RoomSo Expensive? A Tale of Hurricane Sandy Prices and the Allocation of Resources Price Floor Supply and Demand Analysis: An Oil ImportFee ECONOMICS IN PRACTICE The Price of FreeMcMuffins: McBreakfast Giveaway a Big Hit Supply and Demand and Market Efficiency Consumer Surplus Producer Surplus Competitive Markets Maximize the Sum ofproducer and Consumer Surplus Potential Causes of Deadweight Loss FromUnder- and Overproduction Looking Ahead

5 5 Elasticity Price Elasticity of Demand Slope and Elasticity Types of Elasticity Calculating Elasticities Calculating Percentage Changes Elasticity Is a Ratio of Percentages The Midpoint Formula Elasticity Changes Along a Straight-Line DemandCurve Elasticity and Total Revenue The Determinants of Demand Elasticity ECONOMICS IN PRACTICE Price Elasticities ofexport Demand for Malaysias Electronics Availability of Substitutes ECONOMICS IN PRACTICE Elasticities at adelicatessen in the Short Run and Long Run The Importance of Being Unimportant The Time Dimension Other Important Elasticities Income Elasticity of Demand Cross-Price Elasticity of Demand Elasticity of Supply Looking Ahead PART II The Market System: Choices Made by Households and Firms 6 Household Behavior and ConsumerChoice Household Choice in Output Markets The Determinants of Household Demand The Budget Constraint The Equation of the Budget Constraint The Basis of Choice: Utility Diminishing Marginal Utility Allocating Income to Maximize Utility The Utility-Maximizing Rule ECONOMICS IN PRACTICE Where Do FoodiesLive? Diminishing Marginal Utility and Downward-Sloping Demand Income and Substitution Effects The Income Effect The Substitution Effect Household Choice in Input Markets The Labor Supply Decision ECONOMICS IN PRACTICE Substitution and MarketBaskets

6 The Price of Leisure Income and Substitution Effects of a WageChange Saving and Borrowing: Present versus FutureConsumption A Review: Households in Output and InputMarkets Appendix: Indifference Curves 7 The Production Process: TheBehavior of Profit-MaximizingFirms The Behavior of Profit-Maximizing Firms Profits and Economic Costs Short-Run versus Long-Run Decisions The Bases of Decisions: Market Price of Outputs,Available Technology, and Input Prices The Production Process Production Functions: Total Product, MarginalProduct, and Average Product Production Functions with Two Variable Factors ofproduction ECONOMICS IN PRACTICE Learning about GrowingPineapples in Ghana Choice of Technology ECONOMICS IN PRACTICE How Fast Should atruck Driver Go? Looking Ahead: Cost and Supply Appendix: Isoquants and Isocosts 8 Short-Run Costs and OutputDecisions Costs in the Short Run Fixed Costs Variable Costs ECONOMICS IN PRACTICE Flying Standby Total Costs Short-Run Costs: A Review Output Decisions: Revenues, Costs, and ProfitMaximization Perfect Competition ECONOMICS IN PRACTICE Average and MarginalCosts at Suwannarat Civil Co., Ltd. Total Revenue and Marginal Revenue Comparing Costs and Revenues to Maximize Profit The Short-Run Supply Curve Looking Ahead 9 Long-Run Costs and OutputDecisions Short-Run Conditions and Long-RunDirections

7 Maximizing Profits Minimizing Losses The Short-Run Industry Supply Curve Long-Run Directions: A Review Long-Run Costs: Economies and Diseconomies ofscale Increasing Returns to Scale ECONOMICS IN PRACTICE Economies of Scale inthe World Marketplace ECONOMICS IN PRACTICE Economies of Scale insolar Constant Returns to Scale Diseconomies of Scale U-Shaped Long-Run Average Costs Long-Run Adjustments to Short-RunConditions Short-Run Profits: Moves In and Out ofequilibrium ECONOMICS IN PRACTICE The Long-Run AverageCost Curve: Flat or U-Shaped? The Long-Run Adjustment Mechanism:Investment Flows Toward ProfitOpportunities ECONOMICS IN PRACTICE Success of the AirlineIndustry ECONOMICS IN PRACTICE Why is Food SoExpensive at the Airport? Output Markets: A Final Word Appendix: External Economies and Diseconomies 10 Input Demand: The Labor andland Markets Input Markets: Basic Concepts Demand for Inputs: A Derived Demand Inputs: Complementary and Substitutable Diminishing Returns ECONOMICS IN PRACTICE Do ManagersMatter? Marginal Revenue Product Labor Markets A Firm Using Only One Variable Factor ofproduction: Labor ECONOMICS IN PRACTICE Productivity Change andwage Growth A Firm Employing Two Variable Factors ofproduction in the Short and Long Run ECONOMICS IN PRACTICE The National FootballLeague Predicts Marginal Products Many Labor Markets Land Markets Rent and the Value of Output Produced onland ECONOMICS IN PRACTICE Valuing Land The Firms Profit-Maximizing Condition in InputMarkets Input Demand Curves Shifts in Factor Demand Curves Looking Ahead

8 11 Input Demand: The CapitalMarket and the InvestmentDecision Capital, Investment, and Depreciation Capital ECONOMICS IN PRACTICE Social Capital inemerging Markets Investment and Depreciation ECONOMICS IN PRACTICE Investment Banking,IPOs, and Beauty The Capital Market Capital Income: Interest and Profits Financial Markets in Action ECONOMICS IN PRACTICE Who Owns Stocks in thethailand? Mortgages and the Mortgage Market Capital Accumulation and Allocation The Demand for New Capital and the InvestmentDecision Forming Expectations Comparing Costs and Expected Return A Final Word on Capital Appendix: Calculating Present Value 12 General Equilibrium andthe Efficiency of PerfectCompetition Market Adjustment to Changes in Demand Allocative Efficiency and CompetitiveEquilibrium Pareto Efficiency ECONOMICS IN PRACTICE More Corn to Burn, Lessto Eat Revisiting Consumer and Producer Surplus The Efficiency of Perfect Competition Perfect Competition versus Real Markets The Sources of Market Failure Imperfect Competition Public Goods Externalities Imperfect Information Evaluating the Market Mechanism PART III Market Imperfections and the Role ofgovernment 13 Monopoly and AntitrustPolicy Imperfect Competition and Market Power: CoreConcepts Forms of Imperfect Competition and MarketBoundaries Price and Output Decisions in Pure MonopolyMarkets Demand in Monopoly Markets

9 ECONOMICS IN PRACTICE Figuring Out the RightPrice Perfect Competition and Monopoly Compared Monopoly in the Long Run: Barriers to Entry ECONOMICS IN PRACTICE The Monopoly oftenaga Nasional Berhad (TNB) of Malaysia The Social Costs of Monopoly Inefficiency and Consumer Loss Rent-Seeking Behavior Price Discrimination Examples of Price Discrimination Remedies for Monopoly: Antitrust Policy Major Antitrust Legislation ECONOMICS IN PRACTICE What Happens WhenYou Google: The FTC Case against Google Imperfect Markets: A Review and a LookAhead 14 Oligopoly Market Structure in an Oligopoly ECONOMICS IN PRACTICE Patents in the SmartPhone Industry Oligopoly Models The Collusion Model ECONOMICS IN PRACTICE Price-Fixing Can SendYou to Jail! The Price-Leadership Model The Cournot Model Game Theory Repeated Games A Game with Many Players: Collective Action CanBe Blocked by a Prisoners Dilemma Oligopoly and Economic Performance Industrial Concentration and TechnologicalChange The Role of Government Regulation of Mergers ECONOMICS IN PRACTICE Blocking the AT&TMerger with T-Mobile A Proper Role? 15 Monopolistic Competition Industry Characteristics Product Differentiation and Advertising How Many Varieties? How Do Firms Differentiate Products? ECONOMICS IN PRACTICE Organic, Free-RangeChickens Advertising ECONOMICS IN PRACTICE Can Information ReduceObesity?

10 Price and Output Determination in MonopolisticCompetition Product Differentiation and DemandElasticity Price/Output Determination in the ShortRun Price/Output Determination in the Long Run Economic Efficiency and ResourceAllocation 16 Externalities, Public Goods, andsocial Choice Externalities and Environmental Economics Marginal Social Cost and Marginal-CostPricing ECONOMICS IN PRACTICE Adjusting to anenvironmental Disaster: The Dust Bowl Private Choices and External Effects Internalizing Externalities ECONOMICS IN PRACTICE Externalities Are inthe Air Public (Social) Goods The Characteristics of Public Goods Public Provision of Public Goods Optimal Provision of Public Goods Local Provision of Public Goods: TieboutHypothesis Social Choice The Voting Paradox Government Inefficiency: Theory of PublicChoice Rent-Seeking Revisited Government and the Market 17 Uncertainty and AsymmetricInformation Decision Making Under Uncertainty: TheTools Expected Value Expected Utility Attitudes Toward Risk Asymmetric Information Adverse Selection Market Signaling ECONOMICS IN PRACTICE Adverse Selection in thehealth Care Market ECONOMICS IN PRACTICE How to ReadAdvertisements Moral Hazard Incentives ECONOMICS IN PRACTICE Hows thesnow? Labor Market Incentives

11 18 Income Distribution andpoverty The Sources of Household Income Table of Contents Wages and Salaries Income from Property ECONOMICS IN PRACTICE Everything I Needed toknow I Learned in Kindergarten! Income from the Government: TransferPayments The Distribution of Income Income Inequality in the United States The World Distribution of Income Causes of Increased Inequality ECONOMICS IN PRACTICE The New RichWork! Poverty ECONOMICS IN PRACTICE IntergenerationalInequality The Distribution of Wealth The Utility Possibilities Frontier The Redistribution Debate Arguments Against Redistribution Arguments in Favor of Redistribution Redistribution Programs and Policies Financing Redistribution Programs: Taxes Expenditure Programs ECONOMICS IN PRACTICE Expanding Medicare iscomplicated Government or the Market? A Review ECONOMICS IN PRACTICE Will Obamacare MakeYou Healthier? 19 Public Finance: The Economicsof Taxation The Economics of Taxation Taxes: Basic Concepts ECONOMICS IN PRACTICE CalculatingTaxes Tax Equity What Is the Best Tax Base? The Gift and Estate Tax Tax Incidence: Who Pays? The Incidence of Payroll Taxes The Incidence of Corporate Profits Taxes The Overall Incidence of Taxes in the UnitedStates: Empirical Evidence Excess Burdens and the Principle ofneutrality How Do Excess Burdens Arise? Measuring Excess Burdens Excess Burdens and the Degree of Distortion The Principle of Second Best Optimal Taxation

12 PART IV The World Economy 20 International Trade,Comparative Advantage, andprotectionism Trade Surpluses and Deficits The Economic Basis for Trade: ComparativeAdvantage Absolute Advantage versus ComparativeAdvantage Terms of Trade Exchange Rates The Sources of Comparative Advantage The Heckscher-Ohlin Theorem Other Explanations for Observed TradeFlows Trade Barriers: Tariffs, Export Subsidies, andquotas ECONOMICS IN PRACTICE Globalization ImprovesFirm Productivity U.S. Trade Policies, GATT, and the WTO ECONOMICS IN PRACTICE What Happens WhenWe Lift a Quota? Free Trade or Protection? The Case for Free Trade The Case for Protection ECONOMICS IN PRACTICE A Petition An Economic Consensus 21 Economic Growth indeveloping and TransitionalEconomies Life in the Developing Nations: Population andpoverty Economic Development: Sources andstrategies The Sources of Economic Development ECONOMICS IN PRACTICE Corruption Strategies for Economic Development ECONOMICS IN PRACTICE Who You Marry MayDepend on the Rain ECONOMICS IN PRACTICE Cell Phones IncreaseProfits for Fishermen in India Two Examples of Development: China andindia Development Interventions Random and Natural Experiments: Some NewTechniques in Economic Development Education Ideas Health Improvements Population Issues The Transition to a Market Economy Six Basic Requirements for SuccessfulTransition

13 Glossary Index A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Photo Credits