Contents -- 1 The Origins and Scope of Microeconomics -- 1.1 Definitions of Economics -- 1.2 Ancient Origins -- 1.3 Classical Concepts -- 1.4 Mathematical Methods -- 1.5 Interdisciplinary Inquiries -- 1.6 Predictive Problems -- 1.7 Empirical Endeavors -- 1.8 Micro and Macro -- 1.9 Summary -- 1.10 Solutions to Exercises -- 1.11 Problems -- 2 Inputs, Outputs, and Costs -- 2.1 Basic Concepts -- 2.2 Input Substitution -- 2.3 Cost Minimization Problem -- 2.4 Summary -- 2.5 Solutions to Exercises -- 2.6 Problems -- 2.7 Appendix: Review of Exponents and Logarithms -- 3 Cost Minimization Using Linear Programming -- 3.1 Limitations of Production Experiments -- 3.2 Reformulation of the Least-cost Diet Problem in Terms of Nutrients -- 3.3 Linear Programming Techniques -- 3.4 Summary -- 3.5 Solutions to Exercises -- 3.6 Problems: Something to Chew On -- 3.7 Appendix: Software for Linear Programming -- 4 Production and Costs -- 4.1 Inputs and Outputs -- 4.2 Production Functions -- 4.3 Expansion Paths -- 4.4 Returns to Scale -- 4.5 Cost Curves -- 4.6 Summary -- 4.7 Solutions to Exercises -- 4.8 Problems -- 4.9 Appendix: An Experiment with Economies of Scale and Learning by Doing -- 5 The Production Decisions of Competitive Firms -- 5.1 Revenue and Profit -- 5.2 Perfect Competition -- 5.3 Supply Curves -- 5.4 Summary -- 5.5 Solutions to Exercises -- 5.6 Problems -- 6 Marginal Products and Factor Proportions -- 6.1 Marginal Products -- 6.2 Factor Demand -- 6.3 Factor Prices and Proportions -- 6.4 Summary -- 6.5 Solutions to Exercises -- 6.6 Problems -- 7 Comparative Advantage and Gains from Trade -- 7.1 Production and Comparative Advantage -- 7.2 Revenue Maximization -- 7.3 International Trade -- 7.4 Summary -- 7.5 Solutions to Exercises -- 7.6 Problems -- 7.7 Appendix: A Linear Programming Solution to a Space Allocation Problem.

8 Allocation of Factors in Competitive Markets -- 8.1 Introduction to General Equilibrium -- 8.2 General Equilibrium in Factor Markets -- 8.3 Applications -- 8.4 Summary -- 8.5 Solutions to Exercises -- 8.6 Problems -- 9 Consumer Choice and Demand -- 9.1 Introduction -- 9.2 Budget Constraints -- 9.3 Consumer Preferences -- 9.4 Constrained Optimization -- 9.5 Demand -- 9.6 Consumer Surplus -- 9.7 Summary -- 9.8 Solutions to Exercises -- 9.9 Problems -- 10 Exchange and Product Assortment -- 10.1 Exchange -- 10.2 Product Assortment -- 10.3 Summary -- 10.4 Solutions to Exercises -- 10.5 Problems -- 11 Loss Aversion and Reference-dependent Preferences -- 11.1 Evidence That Assets Can Affect Preferences -- 11.2 A Theory of Reference Dependence -- 11.3 Boundaries of Loss Aversion, the Endowment Effect, and the WTA-WTP Gap -- 11.4 Economic Implications of Loss Aversion -- 11.5 Summary -- 11.6 Solutions to Exercises -- 11.7 Problems: Economics Gets Kinky -- 12 The Context and Framing of Choice -- 12.1 Context -- 12.2 Invariance and Framing -- 12.3 Value Comparison -- 12.4 Summary -- 12.5 Solutions to Exercises -- 12.6 Problems -- 13 Labor Supply -- 13.1 Consumption vs. Leisure -- 13.2 Labor Supply Curve -- 13.3 Nonlinear Budget Constraints -- 13.4 Pace and Motivation -- 13.5 Human Capital and Education -- 13.6 Summary -- 13.7 Solutions to Exercises -- 13.8 Problems -- 14 Monopoly and Monopsony Power -- 14.1 Monopoly -- 14.2 Varieties of Imperfect Competition -- 14.3 Monopolistic Competition -- 14.4 Monopsony -- 14.5 Monopsonistic Competition -- 14.6 Summary -- 14.7 Solutions to Exercises -- 14.8 Problems -- 15 Oligopoly and Oligopsony: Classic Models -- 15.1 Oligopoly -- 15.2 Oligopsony -- 15.3 Summary -- 15.4 Solutions to Exercises -- 15.5 Problems -- 15.6 Appendix: An Experiment with Duopoly -- 16 Economics of Time -- 16.1 Interest.

16.2 Present and Future Value -- 16.3 Implications for Schooling and Work -- 16.4 Summary -- 16.5 Solutions to Exercises -- 16.6 Problems -- 17 Saving Behavior -- 17.1 Intertemporal Choice -- 17.2 Budget Constraints -- 17.3 Causes of Low Saving Rates -- 17.4 Policies to Stimulate Saving -- 17.5 Summary -- 17.6 Solutions to Exercises -- 17.7 Problems -- 18 Inconsistent Intertemporal Choice -- 18.1 Preferences -- 18.2 Additivity, Consistency, and Exponential Discounting -- 18.3 Hyperbolic Discounting and Inconsistent Preferences -- 18.4 Other Anomalies -- 18.5 Policy Implications -- 18.6 Summary -- 18.7 Solutions to Exercises -- 18.8 Problems -- 18.9 Appendix: Additivity, Consistency, and Discounting -- 19 Economics of Risk -- 19.1 Risk and Probability -- 19.2 Expected Value -- 19.3 Attitudes Toward Risk -- 19.4 Insurance -- 19.5 Summary -- 19.6 Solutions to Exercises -- 19.7 Problems -- 20 Behavior in the Face of Risk -- 20.1 Normative Theories -- 20.2 Positive Theories -- 20.3 Judging Probabilities -- 20.4 Summary -- 20.5 Solutions to Exercises -- 20.6 Problems -- 20.7 Appendix: Shapes of Utility Functions and Attitudes Toward Risk -- 21 Game Theory and Modern Models of Oligopoly -- 21.1 Origins and Goals of Game Theory -- 21.2 Basic Concepts -- 21.3 Simultaneous Choice -- 21.4 Pure and Mixed Strategies -- 21.5 Repeated Games -- 21.6 Sequential Choice -- 21.7 Normative and Positive Interpretations -- 21.8 Behavioral Game Theory -- 21.9 Summary -- 21.10 Solutions to Exercises -- 21.11 Problems -- 22 Time, Risk, and Investment -- 22.1 Net Present Value and Options -- 22.2 Examples -- 22.3 Irreversible Investments -- 22.4 Implications -- 22.5 Summary -- 22.6 Solutions to Exercises -- 22.7 Problems: Economists in Deep Water -- 23 Technological Change -- 23.1 Key Concepts -- 23.2 Basic Research -- 23.3 Development.

23.4 Neutral and Biased Technological Change -- 23.5 Positive Externalities and Public Policy -- 23.6 Technological Change and Market Structure -- 23.7 Technological Change in the Pharmaceutical Industry: A Case Study -- 23.8 Summary -- 23.9 Solutions to Exercises -- 23.10 Problems -- 24 Assets, Investment and Financial Markets -- 24.1 Assets types -- 24.2 Rate of Return -- 24.3 Investors and Financial Markets -- 24.4 Loss Aversion, Myopia, and Portfolio Selection -- 24.5 Summary -- 24.6 Solutions to Exercises -- 24.7 Problems -- 25 Government's Roles in the Economy -- 25.1 Functions of Government -- 25.2 Taxes and Regulation -- 25.3 Government Regulation of Pharmaceuticals: A Case Study -- 25.4 Summary -- 25.5 Solutions to Exercises -- 25.6 Problems -- 25.7 Appendix: Experiment with Social Choice of Income Distributions -- Glossary -- A -- B -- C -- D -- E -- F -- G -- I -- L -- M -- N -- O -- P -- R -- S -- T -- U -- V -- References -- Index -- A -- B -- C -- D -- E -- F -- G -- H -- I -- K -- L -- M -- N -- O -- P -- Q -- R -- S -- T -- U -- V -- W -- X -- Y.