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Preface | |
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Introduction: Markets and Prices | |
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Preliminaries | |
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The Themes of Microeconomics | |
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What Is a Market? | |
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Real versus Nominal Prices | |
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Why Study Microeconomics? | |
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Summary | |
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Questions for Review | |
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Exercises | |
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The Basics of Supply and Demand | |
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Supply and Demand | |
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The Market Mechanism | |
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Changes in Market Equilibrium | |
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Elasticities of Supply and Demand | |
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Short-Run versus Long-Run Elasticities | |
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Understanding and Predicting the Effects of Changing Market Conditions | |
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Effects of Government Intervention--Price Controls | |
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Summary | |
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Questions for Review | |
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Exercises | |
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Producers, Consumers, and Competitive Markets | |
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Consumer Behavior | |
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Consumer Preferences | |
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Budget Constraints | |
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Consumer Choice | |
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Revealed Preference | |
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Marginal Utility and Consumer Choice | |
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Cost-of-Living Indexes | |
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Summary | |
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Questions for Review | |
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Exercises | |
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Individual and Market Demand | |
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Individual Demand | |
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Income and Substitution Effects | |
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Market Demand | |
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Consumer Surplus | |
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Network Externalities | |
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Empirical Estimation of Demand | |
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Summary | |
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Questions for Review | |
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Exercises | |
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Appendix to Chapter 4: Demand Theory--A Mathematical Treatment | |
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Choice Under Uncertainty | |
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Describing Risk | |
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Preferences Toward Risk | |
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Reducing Risk | |
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The Demand for Risky Assets | |
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Summary | |
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Questions for Review | |
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Exercises | |
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Production | |
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The Technology of Production | |
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Isoquants | |
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Production with One Variable Input (Labor) | |
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Production with Two Variable Inputs | |
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Returns to Scale | |
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Summary | |
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Questions for Review | |
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Exercises | |
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The Cost of Production | |
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Measuring Cost: Which Costs Matter? | |
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Cost in the Short Run | |
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Cost in the Long Run | |
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Long-Run versus Short-Run Cost Curves | |
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Production with Two Outputs--Economies of Scope | |
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Dynamic Changes in Costs--The Learning Curve | |
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Estimating and Predicting Cost | |
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Summary | |
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Questions for Review | |
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Exercises | |
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Appendix to Chapter 7: Production and Cost Theory--A Mathematical Treatment | |
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Profit Maximization and Competitive Supply | |
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Perfectly Competitive Markets | |
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Profit Maximization | |
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Marginal Revenue, Marginal Cost, and Profit Maximization | |
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Choosing Output in the Short Run | |
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The Competitive Firm's Short-Run Supply Curve | |
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The Short-Run Market Supply Curve | |
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Choosing Output in the Long Run | |
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The Industry's Long-Run Supply Curve | |
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Summary | |
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Questions for Review | |
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Exercises | |
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The Analysis of Competitive Markets | |
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Evaluating the Gains and Losses from Government Policies--Consumer and Producer Surplus | |
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The Efficiency of a Competitive Market | |
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Minimum Prices | |
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Price Supports and Production Quotas | |
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Import Quotas and Tariffs | |
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The Impact of a Tax or Subsidy | |
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Summary | |
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Questions for Review | |
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Exercises | |
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Market Structure and Competitive Strategy | |
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Market Power: Monopoly and Monopsony | |
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Monopoly | |
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Monopoly Power | |
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Sources of Monopoly Power | |
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The Social Costs of Monopoly Power | |
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Monopsony | |
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Monopsony Power | |
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Limiting Market Power: The Antitrust Laws | |
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Summary | |
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Questions for Review | |
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Exercises | |
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Pricing with Market Power | |
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Capturing Consumer Surplus | |
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Price Discrimination | |
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Intertemporal Price Discrimination and Peak-Load Pricing | |
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The Two-Part Tariff | |
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Bundling | |
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Advertising | |
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Summary | |
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Questions for Review | |
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Exercises | |
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Appendix to Chapter 11: Transfer Pricing in the Integrated Firm | |
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Monopolistic Competition and Oligopoly | |
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Monopolistic Competition | |
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Oligopoly | |
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Price Competition | |
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Competition versus Collusion: The Prisoners' Dilemma | |
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Implications of the Prisoners' Dilemma for Oligopolistic Pricing | |
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Cartels | |
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Summary | |
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Questions for Review | |
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Exercises | |
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Game Theory and Competitive Strategy | |
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Gaming and Strategic Decisions | |
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Dominant Strategies | |
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The Nash Equilibrium Revisited | |
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Repeated Games | |
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Sequential Games | |
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Threats, Commitments, and Credibility | |
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Entry Deterrence | |
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Bargaining Strategy | |
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Auctions | |
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Summary | |
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Questions for Review | |
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Exercises | |
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Markets for Factor Inputs | |
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Competitive Factor Markets | |
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Equilibrium in a Competitive Factor Market | |
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Factor Markets with Monopsony Power | |
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Factor Markets with Monopoly Power | |
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Summary | |
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Questions for Review | |
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Exercises | |
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Investment, Time, and Capital Markets | |
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Stocks versus Flows | |
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Present Discounted Value | |
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The Value of a Bond | |
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The Net Present Value Criterion for Capital Investment Decisions | |
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Adjustments for Risk | |
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Investment Decisions by Consumers | |
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Intertemporal Production Decisions--Depletable Resources | |
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How Are Interest Rates Determined? | |
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Summary | |
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Questions for Review | |
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Exercises | |
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Information, Market Failure, and the Role of Government | |
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General Equilibrium and Economic Efficiency | |
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General Equilibrium Analysis | |
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Efficiency in Exchange | |
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Equity and Efficiency | |
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Efficiency in Production | |
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The Gains from Free Trade | |
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An Overview--The Efficiency of Competitive Markets | |
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Why Markets Fail | |
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Summary | |
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Questions for Review | |
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Exercises | |
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Markets with Asymmetric Information | |
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Quality Uncertainty and the Market for Lemons | |
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Market Signaling | |
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Moral Hazard | |
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The Principal-Agent Problem | |
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Managerial Incentives in an Integrated Firm | |
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Asymmetric Information in Labor Markets: Efficiency Wage Theory | |
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Summary | |
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Questions for Review | |
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Exercises | |
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Externalities and Public Goods | |
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Externalities | |
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Ways of Correcting Market Failure | |
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Externalities and Property Rights | |
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Common Property Resources | |
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Public Goods | |
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Private Preferences for Public Goods | |
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Summary | |
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Questions for Review | |
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Exercises | |
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The Basics of Regression | |
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Glossary | |
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Answers to Selected Exercises | |
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Index | |
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List of Examples | |
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Markets for Prescription Drugs | |
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The Price of Eggs and the Price of a College Education | |
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The Minimum Wage | |
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The Price of Eggs and the Price of a College Education Revisited | |
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Wage Inequality in the United States | |
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The Long-Run Behavior of Natural Resource Prices | |
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The Market for Wheat | |
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The Demand for Gasoline and Automobiles | |
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The Weather in Brazil and the Price of Coffee in New York | |
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Declining Demand and the Behavior of Copper Prices | |
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Upheaval in the World Oil Market | |
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Price Controls and Natural Gas Shortages | |
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Designing New Automobiles | |
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Designing New Automobiles (II) | |
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Decision Making and Public Policy | |
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A College Trust Fund | |
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Revealed Preference for Recreation | |
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Gasoline Rationing | |
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The Bias in the CPI | |
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Consumer Expenditures in the United States | |
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The Effects of a Gasoline Tax | |
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The Aggregate Demand for Wheat | |
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The Demand for Housing | |
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The Value of Clean Air | |
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Network Externalities and the Demands for Computers and E-Mail | |
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The Demand for Ready-to-Eat Cereal | |
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Deterring Crime | |
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Business Executives and the Choice of Risk | |
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The Value of Title Insurance When Buying a House | |
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The Value of Information in the Dairy Industry | |
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Investing in the Stock Market | |
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Malthus and the Food Crisis | |
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Labor Productivity and the Standard of Living | |
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A Production Function for Wheat | |
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Returns to Scale in the Carpet Industry | |
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Choosing the Location for a New Law School Building | |
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Sunk, Fixed, and Variable Costs: Computers, Software, and Pizzas | |
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The Short-Run Cost of Aluminum Smelting | |
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The Effect of Effluent Fees on Input Choices | |
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Economies of Scope in the Trucking Industry | |
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The Learning Curve in Practice | |
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Cost Functions for Electric Power | |
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A Cost Function for the Savings and Loan Industry | |
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The Short-Run Output Decision of an Aluminum Smelting Plant | |
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Some Cost Considerations for Managers | |
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The Short-Run Production of Petroleum Products | |
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The Short-Run World Supply of Copper | |
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The Long-Run Supply of Housing | |
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Price Controls and Natural Gas Shortages | |
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The Market for Human Kidneys | |
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Airline Regulation | |
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Supporting the Price of Wheat | |
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The Sugar Quota | |
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A Tax on Gasoline | |
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Astra-Merck Prices Prilosec | |
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Markup Pricing: Supermarkets to Designer Jeans | |
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The Pricing of Prerecorded Videocassettes | |
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Monopsony Power in U.S. Manufacturing | |
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A Phone Call About Prices | |
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The United States versus Microsoft | |
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The Economics of Coupons and Rebates | |
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Airline Fares | |
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How to Price a Best-Selling Novel | |
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Polaroid Cameras | |
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Pricing Cellular Phone Service | |
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The Complete Dinner versus a la Carte: A Restaurant's Pricing Problem | |
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Advertising in Practice | |
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Monopolistic Competition in the Markets for Colas and Coffee | |
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A Pricing Problem for Procter and Gamble | |
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Procter and Gamble in a Prisoners' Dilemma | |
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Price Leadership and Price Rigidity in Commercial Banking | |
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The Cartelization of Intercollegiate Athletics | |
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The Milk Cartel | |
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Acquiring a Company | |
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Oligopolistic Cooperation in the Water Meter Industry | |
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Competition and Collusion in the Airline Industry | |
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Wal-Mart Stores' Preemptive Investment Strategy | |
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DuPont Deters Entry in the Titanium Dioxide Industry | |
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Diaper Wars | |
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Internet Auctions | |
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The Demand for Jet Fuel | |
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Labor Supply for One- and Two-Earner Households | |
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Pay in the Military | |
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Monopsony Power in the Market for Baseball Players | |
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Teenage Labor Markets and the Minimum Wage | |
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The Decline of Private-Sector Unionism | |
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Wage Inequality--Have Computers Changed the Labor Market? | |
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The Value of Lost Earnings | |
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The Yields on Corporate Bonds | |
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Capital Investment in the Disposable Diaper Industry | |
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Choosing an Air Conditioner and a New Car | |
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How Depletable Are Depletable Resources? | |
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The Interdependence of International Markets | |
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The Effects of Automobile Import Quotas | |
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The Costs and Benefits of Special Protection | |
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Lemons in Major League Baseball | |
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Working into the Night | |
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Reducing Moral Hazard--Warranties of Animal Health | |
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Crisis in the Savings and Loan Industry | |
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Managers of Nonprofit Hospitals as Agents | |
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Efficiency Wages at Ford Motor Company | |
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The Costs and Benefits of Reduced Sulfur Dioxide Emissions | |
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Emissions Trading and Clean Air | |
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Regulating Municipal Solid Wastes | |
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The Coase Theorem at Work | |
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Crawfish Fishing in Louisiana | |
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The Demand for Clear Air | |
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The Demand for Coal | |