Description

This book provides a treatment of microeconomic theory that stresses the relevance and application to managerial and public policy decision making. This edition includes a number of new topics, updated examples, and improved exposition of existing materials.

 

MyEconLab is not included. Students, if MyEconLab is a recommended/mandatory component of the course, please ask your instructor for the correct ISBN. MyEconLab should only be purchased when required by an instructor. Instructors, contact your Pearson representative for more information.

 

MyEconLab is an online homework, tutorial, and assessment product designed to personalize learning and improve results. With a wide range of interactive, engaging, and assignable activities, students are encouraged to actively learn and retain tough course concepts.

Features

This title is a Pearson Global Edition. The Editorial team at Pearson has worked closely with educators around the world to include content which is especially relevant to students outside the United States.

 

For undergraduate and graduate economics majors who are enrolled in an Intermediate Microeconomics course.

A book that provides a treatment of microeconomic theory that stresses the relevance and application to managerial and public policy decision making.

 

This edition includes a number of new topics, updated examples, and improved exposition of existing materials.

 

An Applied Approach To Micro

 

This text incorporates over 100 real-world examples into the flow of the text, rather than as segregated boxed features. These examples highlight the application of microeconomics to real managerial and public policy decisions. Examples include:

• Condominiums versus Cooperatives in New York City

   

• Trading Tasks and ipod Production

   

• Reducing Sulfur Dioxide Emissions in Beijing, China

   

Pedagogy

 

Key terms are defined in margins throughout the book and in the glossary. Concept links are also in margins to promote awareness of an idea previously introduced in the text.

 

OTHER TOPICS OF DISTINCTION

 

Chapter 4 includes new material on speculative demand and network externalities to include social networks.

Chapter 5 contains material on behavioral economics. Material on alternative forms of organizations is included in Chapter 8. Topics include:

• Alternative forms of organization and the definition of cooperative.
• Return to working assumption of profit maximization.
• Total cost and relation with variable cost example.

The Appendix to Chapter 11 has been expanded to cover the vertically integrated firm more broadly, including the problem of double marginalization and the advantages of vertical integration, along with the analysis of transfer pricing.

Chapter 18 on Externalities and Public Goods covers the treatment of environmental economics, a very hot topic now in this course. In addition, the author has clarified externalities and added a new section on stock externalities including the kind that arise from greenhouse gases and global warming. An example of pollution control in China is also included.

New to this Edition

 

NEW! Offer the latest information:

 

 

 

New material on speculative demand and an expanded discussion of network externalities to include social networks can be found in Chapter 4.

 

 

 

Chapter 5 contains a new section on bubbles and informational cascades, along with examples showing applications to housing markets and the financial crisis. This chapter also contains expanded and updated material on behavioral economics.

 

 

New and updated examples:

 

A series of examples relating to the economics of health care are introduced in Chapters 3, 6, 16, and 17, including the demand for and production of health care.

 

 

A new series of examples on taxicab markets, found in in Chapters 8, 9, and 15, illustrate the effects of government policies that restrict output.

 

 

Added examples on energy demand and energy efficiency can be found in Chapters 4 and 7, and

 

 

An example that explains the pricing of this textbook is featured in Chapter 12.

 

Revised and improved treatment:

 

Core material on production and cost in Chapters 7 and 8.

 

 

General equilibrium and economic efficiency in Chapter 16.

 

Table of Contents

Part I. Introduction: Markets and Prices

Chapter 1. Preliminaries

Chapter 2. The Basics of Supply and Demand

Part II. Producers, Consumers, and Competitive Markets

Chapter 3. Consumer Behavior

Chapter 4. Individual and Market Demand

Chapter 5. Uncertainty and Consumer Behavior

Chapter 6. Production

Chapter 7. The Cost of Production

Chapter 8. Profit Maximization and Competitive Supply

Chapter 9. The Analysis of Competitive Markets

Part III. Market Structure and Competitive Strategy

Chapter 10. Market Power: Monopoly and Monopsony

Chapter 11. Pricing with Market Power

Chapter 12. Monopolistic Competition and Oligopoly

Chapter 13. Game Theory and Competitive Strategy

Chapter 14. Markets for Factor Inputs

Chapter 15. Investment, Time, and Capital Markets

Part IV. Information, Market Failure, and the Role of Government

Chapter 16. General Equilibrium and Economic Efficiency

Chapter 17. Markets with Asymmetric Information

Chapter 18. Externalities and Public Goods