Microeconomics

Part 1 Introduction to Microeconomics

Chapter 1 Analyzing Economic Problems

1.1 Why Study Micro-Economics?

1.2 Three Key Analytical Tools

1.3 Positive and Normative Analysis



Chapter 2 Demand and Supply Analysis

2.1 Demand, Supply, And Market Equilibrium

2.2 Price Elasticity of Demand

2.3 Other Elasticities

2.4 Elasticity in the Long Run Versus

2.5 Back-of-the-Envelope Calculations



Part 2 Consumer Theory

Chapter 3 Consumer Preferences and the Concept of Utility

3.1 Representations of Preferences

3.2 Utility Functions

3.3 Special Preferences

3.4 Behavioral Aspects of Choice



Chapter 4 Consumer Choice

4.1 The Budget Constraint

4.2 Optimal Choice

4.3 Consumer Choice with Composite Goods

4.4 Revealed Preference

4.5 Maximizing Utility Using Lagrange Multipliers



Chapter 5 The Theory of Demand

5.1 Optimal Choice and Demand

5.2 Change in the Price of a Good: Substitution Effect and Income Effect

5.3 Change in the Price of a Good: The Concept of Consumer Surplus

5.4 Market Demand

5.5 The Choice of Labor and Leisure

5.6 Consumer Price Indices



Part 3 Production and Cost Theory

Chapter 6 Inputs and Production Functions

6.1 Introduction to Inputs and Production Functions

6.2 Production Functions with a Single Input

6.3 Production Functions with More than One Input

6.4 Substitutability Among Inputs

6.5 Returns to Scale

6.6 Technological Progress



Chapter 7 Costs and Cost Minimization

7.1 Cost Concepts for Decision Making

7.2 The Cost-Minimization Problem

7.3 Comparative Statics Analysis of the Cost-Minimization Problem

7.4 Short-Run Cost Minimization

7.5 Minimizing Long-Run Costs Using Lagrange Multipliers



Chapter 8 Cost Curves

8.1 Long-Run Cost Curves

8.2 Short-Run Cost Curves

8.3 Special Topics in Cost

8.4 Estimating Cost Functions



Part 4 Perfect Competition

Chapter 9 Demand Forecasting

9.1 Forecasting Principles: Types, Methods, and Data

9.2 Qualitative Versus Quantitative Methods of Forecasting

9.3 Quantitative Methods of Forecasting

9.4 Forecasting Error, Accuracy, and Its Measurement

9.5 How to Select the Right Forecasting Model

9.6 Other Methods of Forecasting

9.7 Software



Chapter 10 Perfectly Competitive Markets

10.1 What is Perfect Competition?

10.2 Profit Maximization by a Price-Taking Firm

10.3 How the Market Price Is Determined

10.4 How the Market Price Is Determined

10.5 Economic Rent and Producer Surplus



Part 5 Market Power

Chapter 11 Competitive Markets: Applications

11.1 The Invisible Hand, Excise Taxes, and Subsidies

11.2 Price Ceilings and Floors

11.3 Production Quotas

11.4 Price Supports in the Agricultural Sector

11.5 Import Quotas and Tariffs



Chapter 12 Monopoly and Monopsony

12.1 Profit Maximization by a Monopolist

12.2 The Importance of Price Elasticity of Demand

12.3 Comparative Statics for Monopolists

12.4 Monopoly with Multiple Plants and Markets

12.5 The Welfare Economics of Monopoly

12.6 Why do Monopoly Markets Exist?

12.7 Monopsony



Part 6 I Mperfect Competition and Strategic Behavior

Chapter 13 Capturing Surplus

13.1 Capturing Surplus

13.2 First-Degree Price Discrimination: Making the Most from Each Consumer

13.3 Second-Degree Price Discrimination: Quantity Discounts

13.4 Third-Degree Price Discrimination: Different Prices for Different Market Segments

13.5 Tying (Tie-In Sales)

13.6 Advertising



Chapter 14 Market Structure and Competition

14.1 Describing and Measuring Market Structure

14.2 Oligopoly with Homogeneous Products

14.3 Dominant Firm Markets

14.4 Oligopoly with Horizontally Differentiated Products

14.5 Monopolistic Competition



Part 7 Special Topics

Chapter 15 Game Theory and Strategic Behavior

15.1 The Concept of Nash Equilibrium

15.2 The Repeated Prisoners’ Dilemma

15.3 Sequential-Move Games and Strategic Moves



Chapter 16 Risk and Information

16.1 Describing Risky Outcomes

16.2 Evaluating Risky Outcomes

16.3 Bearing and Eliminating Risk

16.4 Analyzing Risky Decisions

16.5 Auctions



Chapter 17 General Equilibrium Theory

17.1 General Equilibrium Analysis: Two Markets

17.2 General Equilibrium Analysis: Many Markets

17.3 General Equilibrium Analysis: Comparative Statics

17.4 The Efficiency of Competitive Markets

17.5 Gains from Free Trade



Chapter 18 Externalities and Public Goods

18.1 Introduction

18.2 Externalities

18.3 Public Goods



Mathematical Appendix

Solutions to Selected Problems

Glossary

Index

This Indian Adaptation of Microeconomics sixth edition has revised text that offers new and enhanced content throughout. The coverage of the book also incorporates the dramatic changes that have occurred in this field in the recent years. New applications and case studies reflecting current data and important new developments in the field of economics relevant to the Indian scenario have been added. A new chapter on Demand Forecasting has been included. Learning- by-Doing Exercises in the chapter, and end of chapters exercises are enriched with new Questions and Problems to help learners relate better to the content.