A Primer on Microeconomics, Second Edition, Volume II

Competition and Constraints

Thomas M. Beveridge

• Éditeur: Business Expert Press
• Année: 2018
• ISBN:
  9781631577307
• Édition: 2
• Sujet: Economics
• Sous-sujet: Microeconomics

This two-volume text represents a common sense approach to basic microeconomics.

Economics, far from being the dismal science, offers us valuable lessons that can be applied to our everyday experiences. At its heart, economics is the scientific study of choice and a study of economic principles allows us to achieve a more informed understanding of how we make our choices; whether these choices occur in our everyday life or in our work environment.

Volume Two, Competition and Constraints, focuses on understanding how markets may operate; profit maximization; how real-world concerns may reduce efficiency; what corrective actions may be taken to prevent market failure and the implications of those actions. The goal is to provide a concise readable primer that extends the fundamentals of microeconomic theory to consider practical economic issues.

Index

Absolute value, 107–109

Abusive monopoly, 205

Achievement, 16

Adam’s marginal benefit curve for apples, 78–79

Adam’s Ribs, 240

Adverse selection, 194

Advertising elasticity of demand, 106

After-tax income, 48

After-tax revenues, 54

Agricultural price support, 97

unintended effects of guaranteed, 97–98

Agricultural Revolution, 278

Agriculture Bill, 55, 273

Airbags, 195

Akerlof, George, 196

Alcoholic beverage control (ABC), 225

Allocative efficiency, 16, 191–192, 222, 243, 260

Anchoring, 27

Anti-lemon laws, 197

Antitrust actions, 224

Antitrust Division of the Department of Justice, 224, 256

Artificial barrier to entry, 205–206

Artificial monopoly, 206, 250

Asymmetrical information, 193

Atmospheric pollution, 262

Average Fixed Cost (AFC), 154–155

Average-marginal rule, 147, 210

Average Product (AP), 143–144

Average revenue (AR), 158–160, 209

Average Total Cost (ATC), 155–157, 176–178, 212

Average Variable Cost (AVC), 153–154

Averch–Johnson effect, 229

Baby boomers, 201

Bacardi, 117

Banking. See under Oligopoly

Barriers to entry, 205

artificial, 205–206

natural, 206–207

A Beautiful Mind (movie), 251

Beer. See under Oligopoly

Behavior of Marginal Product, 145

Black Death, 15

Brain Teaser Solution, 73–74

Brat tax, 272

Bundling, 231

Burger King, 38

Burgers. See under Oligopoly

Butter mountains and milk lakes, 96–98

gift-giving and inefficiency, 98

public choice, rent-seeking behavior, and government failure, 102–103

scalping, 98

tariffs and inefficiency, 99–100

tariffs and inefficiency redux, 100–102

taxes and inefficiency, 98–99

Buyers

number/composition of, 52–53

remorse, 78

Cabal Cable, 231

Cable TV, as natural monopoly, 230–231

Cap and trade permits, 271...