Microeconomics & MyEconLab Student Access Code Card

by Pindyck, Robert; Rubinfeld, Daniel

• ISBN13: 9780130084613
• ISBN10: 0130084611
• Edition: 6th
• Format: Package
• Copyright: 2006-01-01
• Publisher: Pearson College Div

Summary

This book is well known for its coverage of modern topics (Game theory, Economics of Information, and Behavioral Economics), clarity of its writing style and graphs, and integrated use of real world examples.The emphasis on relevance and application to both managerial and public-policy decision-making are focused goals of the book. This emphasis is accomplished by including MANY extended examples that cover such topics as the analysis of demand, cost, and market efficiency; the design of pricing strategies; investment and production decisions; and public policy analysis.Economists and strategists looking to stay current with economic information.

Table of Contents

Preface	p. xxiii
Introduction: Markets and Prices	p. 1
Preliminaries	p. 3
The Themes of Microeconomics	p. 4
What Is a Market?	p. 7
Real versus Nominal Prices	p. 11
Why Study Microeconomics?	p. 15
Summary	p. 17
Questions for Review	p. 17
Exercises	p. 18
The Basics of Supply and Demand	p. 19
Supply and Demand	p. 20
The Market Mechanism	p. 23
Changes in Market Equilibrium	p. 24
Elasticities of Supply and Demand	p. 30
Short-Run versus Long-Run Elasticities	p. 35
Understanding and Predicting the Effects of Changing Market Conditions	p. 44
Effects of Government Intervention--Price Controls	p. 53
Summary	p. 55
Questions for Review	p. 56
Exercises	p. 57
Producers, Consumers, and Competitive Markets	p. 59
Consumer Behavior	p. 61
Consumer Preferences	p. 62
Budget Constraints	p. 75
Consumer Choice	p. 79
Revealed Preference	p. 86
Marginal Utility and Consumer Choice	p. 89
Cost-of-Living Indexes	p. 92
Summary	p. 98
Questions for Review	p. 99
Exercises	p. 99
Individual and Market Demand	p. 101
Individual Demand	p. 102
Income and Substitution Effects	p. 110
Market Demand	p. 116
Consumer Surplus	p. 123
Network Externalities	p. 127
Empirical Estimation of Demand	p. 131
Summary	p. 135
Questions for Review	p. 136
Exercises	p. 136
Appendix to Chapter 4: Demand Theory--A Mathematical Treatment	p. 139
Choice Under Uncertainty	p. 149
Describing Risk	p. 150
Preferences Toward Risk	p. 155
Reducing Risk	p. 161
The Demand for Risky Assets	p. 166
Summary	p. 174
Questions for Review	p. 175
Exercises	p. 175
Production	p. 177
The Technology of Production	p. 178
Isoquants	p. 179
Production with One Variable Input (Labor)	p. 181
Production with Two Variable Inputs	p. 191
Returns to Scale	p. 197
Summary	p. 201
Questions for Review	p. 201
Exercises	p. 202
The Cost of Production	p. 203
Measuring Cost: Which Costs Matter?	p. 203
Cost in the Short Run	p. 208
Cost in the Long Run	p. 215
Long-Run versus Short-Run Cost Curves	p. 224
Production with Two Outputs--Economies of Scope	p. 229
Dynamic Changes in Costs--The Learning Curve	p. 232
Estimating and Predicting Cost	p. 237
Summary	p. 242
Questions for Review	p. 243
Exercises	p. 243
Appendix to Chapter 7: Production and Cost Theory--A Mathematical Treatment	p. 246
Profit Maximization and Competitive Supply	p. 251
Perfectly Competitive Markets	p. 252
Profit Maximization	p. 254
Marginal Revenue, Marginal Cost, and Profit Maximization	p. 255
Choosing Output in the Short Run	p. 258
The Competitive Firm's Short-Run Supply Curve	p. 263
The Short-Run Market Supply Curve	p. 266
Choosing Output in the Long Run	p. 271
The Industry's Long-Run Supply Curve	p. 277
Summary	p. 283
Questions for Review	p. 284
Exercises	p. 284
The Analysis of Competitive Markets	p. 287
Evaluating the Gains and Losses from Government Policies--Consumer and Producer Surplus	p. 288
The Efficiency of a Competitive Market	p. 294
Minimum Prices	p. 298
Price Supports and Production Quotas	p. 302
Import Quotas and Tariffs	p. 309
The Impact of a Tax or Subsidy	p. 313
Summary	p. 320
Questions for Review	p. 320
Exercises	p. 321
Market Structure and Competitive Strategy	p. 325
Market Power: Monopoly and Monopsony	p. 327
Monopoly	p. 328
Monopoly Power	p. 339
Sources of Monopoly Power	p. 345
The Social Costs of Monopoly Power	p. 347
Monopsony	p. 352
Monopsony Power	p. 355
Limiting Market Power: The Antitrust Laws	p. 359
Summary	p. 364
Questions for Review	p. 365
Exercises	p. 365
Pricing with Market Power	p. 369
Capturing Consumer Surplus	p. 370
Price Discrimination	p. 371
Intertemporal Price Discrimination and Peak-Load Pricing	p. 382
The Two-Part Tariff	p. 385
Bundling	p. 392
Advertising	p. 403
Summary	p. 407
Questions for Review	p. 408
Exercises	p. 408
Appendix to Chapter 11: Transfer Pricing in the Integrated Firm	p. 413
Monopolistic Competition and Oligopoly	p. 423
Monopolistic Competition	p. 424
Oligopoly	p. 429
Price Competition	p. 437
Competition versus Collusion: The Prisoners' Dilemma	p. 442
Implications of the Prisoners' Dilemma for Oligopolistic Pricing	p. 445
Cartels	p. 451
Summary	p. 456
Questions for Review	p. 457
Exercises	p. 457
Game Theory and Competitive Strategy	p. 461
Gaming and Strategic Decisions	p. 461
Dominant Strategies	p. 464
The Nash Equilibrium Revisited	p. 466
Repeated Games	p. 472
Sequential Games	p. 476
Threats, Commitments, and Credibility	p. 479
Entry Deterrence	p. 483
Bargaining Strategy	p. 489
Auctions	p. 491
Summary	p. 496
Questions for Review	p. 497
Exercises	p. 498
Markets for Factor Inputs	p. 501
Competitive Factor Markets	p. 501
Equilibrium in a Competitive Factor Market	p. 514
Factor Markets with Monopsony Power	p. 518
Factor Markets with Monopoly Power	p. 523
Summary	p. 529
Questions for Review	p. 530
Exercises	p. 530
Investment, Time, and Capital Markets	p. 533
Stocks versus Flows	p. 534
Present Discounted Value	p. 534
The Value of a Bond	p. 538
The Net Present Value Criterion for Capital Investment Decisions	p. 542
Adjustments for Risk	p. 545
Investment Decisions by Consumers	p. 549
Intertemporal Production Decisions--Depletable Resources	p. 551
How Are Interest Rates Determined?	p. 555
Summary	p. 558
Questions for Review	p. 558
Exercises	p. 559
Information, Market Failure, and the Role of Government	p. 561
General Equilibrium and Economic Efficiency	p. 563
General Equilibrium Analysis	p. 563
Efficiency in Exchange	p. 567
Equity and Efficiency	p. 575
Efficiency in Production	p. 578
The Gains from Free Trade	p. 585
An Overview--The Efficiency of Competitive Markets	p. 590
Why Markets Fail	p. 591
Summary	p. 593
Questions for Review	p. 594
Exercises	p. 594
Markets with Asymmetric Information	p. 595
Quality Uncertainty and the Market for Lemons	p. 596
Market Signaling	p. 601
Moral Hazard	p. 606
The Principal-Agent Problem	p. 609
Managerial Incentives in an Integrated Firm	p. 613
Asymmetric Information in Labor Markets: Efficiency Wage Theory	p. 616
Summary	p. 619
Questions for Review	p. 619
Exercises	p. 619
Externalities and Public Goods	p. 621
Externalities	p. 621
Ways of Correcting Market Failure	p. 625
Externalities and Property Rights	p. 638
Common Property Resources	p. 642
Public Goods	p. 644
Private Preferences for Public Goods	p. 649
Summary	p. 651
Questions for Review	p. 651
Exercises	p. 652
The Basics of Regression	p. 655
Glossary	p. 663
Answers to Selected Exercises	p. 675
Index	p. 687
List of Examples
Markets for Prescription Drugs	p. 10
The Price of Eggs and the Price of a College Education	p. 12
The Minimum Wage	p. 13
The Price of Eggs and the Price of a College Education Revisited	p. 26
Wage Inequality in the United States	p. 27
The Long-Run Behavior of Natural Resource Prices	p. 28
The Market for Wheat	p. 33
The Demand for Gasoline and Automobiles	p. 39
The Weather in Brazil and the Price of Coffee in New York	p. 41
Declining Demand and the Behavior of Copper Prices	p. 47
Upheaval in the World Oil Market	p. 49
Price Controls and Natural Gas Shortages	p. 54
Designing New Automobiles	p. 71
Designing New Automobiles (II)	p. 81
Decision Making and Public Policy	p. 82
A College Trust Fund	p. 85
Revealed Preference for Recreation	p. 88
Gasoline Rationing	p. 91
The Bias in the CPI	p. 97
Consumer Expenditures in the United States	p. 108
The Effects of a Gasoline Tax	p. 114
The Aggregate Demand for Wheat	p. 120
The Demand for Housing	p. 122
The Value of Clean Air	p. 125
Network Externalities and the Demands for Computers and E-Mail	p. 130
The Demand for Ready-to-Eat Cereal	p. 134
Deterring Crime	p. 154
Business Executives and the Choice of Risk	p. 160
The Value of Title Insurance When Buying a House	p. 163
The Value of Information in the Dairy Industry	p. 165
Investing in the Stock Market	p. 173
Malthus and the Food Crisis	p. 187
Labor Productivity and the Standard of Living	p. 189
A Production Function for Wheat	p. 196
Returns to Scale in the Carpet Industry	p. 199
Choosing the Location for a New Law School Building	p. 205
Sunk, Fixed, and Variable Costs: Computers, Software, and Pizzas	p. 207
The Short-Run Cost of Aluminum Smelting	p. 213
The Effect of Effluent Fees on Input Choices	p. 220
Economies of Scope in the Trucking Industry	p. 232
The Learning Curve in Practice	p. 236
Cost Functions for Electric Power	p. 240
A Cost Function for the Savings and Loan Industry	p. 241
The Short-Run Output Decision of an Aluminum Smelting Plant	p. 260
Some Cost Considerations for Managers	p. 261
The Short-Run Production of Petroleum Products	p. 265
The Short-Run World Supply of Copper	p. 268
The Long-Run Supply of Housing	p. 282
Price Controls and Natural Gas Shortages	p. 292
The Market for Human Kidneys	p. 295
Airline Regulation	p. 300
Supporting the Price of Wheat	p. 306
The Sugar Quota	p. 312
A Tax on Gasoline	p. 318
Astra-Merck Prices Prilosec	p. 334
Markup Pricing: Supermarkets to Designer Jeans	p. 342
The Pricing of Prerecorded Videocassettes	p. 343
Monopsony Power in U.S. Manufacturing	p. 358
A Phone Call About Prices	p. 362
The United States versus Microsoft	p. 363
The Economics of Coupons and Rebates	p. 379
Airline Fares	p. 380
How to Price a Best-Selling Novel	p. 384
Polaroid Cameras	p. 389
Pricing Cellular Phone Service	p. 390
The Complete Dinner versus a la Carte: A Restaurant's Pricing Problem	p. 401
Advertising in Practice	p. 406
Monopolistic Competition in the Markets for Colas and Coffee	p. 428
A Pricing Problem for Procter and Gamble	p. 440
Procter and Gamble in a Prisoners' Dilemma	p. 444
Price Leadership and Price Rigidity in Commercial Banking	p. 448
The Cartelization of Intercollegiate Athletics	p. 455
The Milk Cartel	p. 456
Acquiring a Company	p. 463
Oligopolistic Cooperation in the Water Meter Industry	p. 474
Competition and Collusion in the Airline Industry	p. 475
Wal-Mart Stores' Preemptive Investment Strategy	p. 482
DuPont Deters Entry in the Titanium Dioxide Industry	p. 487
Diaper Wars	p. 488
Internet Auctions	p. 495
The Demand for Jet Fuel	p. 508
Labor Supply for One- and Two-Earner Households	p. 513
Pay in the Military	p. 517
Monopsony Power in the Market for Baseball Players	p. 520
Teenage Labor Markets and the Minimum Wage	p. 521
The Decline of Private-Sector Unionism	p. 527
Wage Inequality--Have Computers Changed the Labor Market?	p. 528
The Value of Lost Earnings	p. 537
The Yields on Corporate Bonds	p. 541
Capital Investment in the Disposable Diaper Industry	p. 548
Choosing an Air Conditioner and a New Car	p. 550
How Depletable Are Depletable Resources?	p. 554
The Interdependence of International Markets	p. 566
The Effects of Automobile Import Quotas	p. 588
The Costs and Benefits of Special Protection	p. 589
Lemons in Major League Baseball	p. 600
Working into the Night	p. 605
Reducing Moral Hazard--Warranties of Animal Health	p. 608
Crisis in the Savings and Loan Industry	p. 608
Managers of Nonprofit Hospitals as Agents	p. 611
Efficiency Wages at Ford Motor Company	p. 618
The Costs and Benefits of Reduced Sulfur Dioxide Emissions	p. 631
Emissions Trading and Clean Air	p. 632
Regulating Municipal Solid Wastes	p. 637
The Coase Theorem at Work	p. 641
Crawfish Fishing in Louisiana	p. 643
The Demand for Clear Air	p. 647
The Demand for Coal	p. 661
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