Page 22 - Microeconomics, Fourth Edition
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xx CONTENTS
PART 4 PERFECT COMPETITION
CHAPTER 9 Perfectly Competitive Markets 327 LEARNING-BY-DOING EXERCISES
9.1 Deriving the Short-Run Supply Curve for a
A Rose Is a Rose Is a Rose
Price-Taking Firm 341
9.1 What Is Perfect Competition? 330 9.2 Deriving the Short-Run Supply Curve for a Price-Taking
9.2 Profit Maximization by a Price-Taking Firm 332 Firm with Some Nonsunk Fixed Costs 343
Economic Profit versus Accounting Profit 333 9.3 Short-Run Market Equilibrium 349
The Profit-Maximizing Output Choice for a 9.4 Calculating a Long-Run Equilibrium 356
Price-Taking Firm 334 9.5 Calculating Producer Surplus 375
9.3 How the Market Price Is Determined:
Short-Run Equilibrium 337 CHAPTER 10 Competitive Markets:
The Price-Taking Firm’s Short-Run Cost Structure 337 Applications 386
Short-Run Supply Curve for a Price-Taking Firm Is Support a Good Thing?
When All Fixed Costs Are Sunk 339
10.1 The Invisible Hand, Excise Taxes and
Short-Run Supply Curve for a Price-Taking Firm When
Subsidies 388
Some Fixed Costs Are Sunk and Some
The Invisible Hand 389
Are Nonsunk 341
Excise Taxes 390
Short-Run Market Supply Curve 344
Incidence of a Tax 394
Short-Run Perfectly Competitive Equilibrium 348
Subsidies 397
Comparative Statics Analysis of the Short-Run
10.2 Price Ceilings and Floors 400
Equilibrium 349
Price Ceilings 400
9.4 How the Market Price Is Determined: Price Floors 408
Long-Run Equilibrium 352
10.3 Production Quotas 413
Long-Run Output and Plant-Size Adjustments by
Established Firms 352 10.4 Price Supports in the Agricultural Sector 417
The Firm’s Long-Run Supply Curve 353 Acreage Limitation Programs 418
Free Entry and Long-Run Perfectly Competitive Government Purchase Programs 418
Equilibrium 354 10.5 Import Quotas and Tariffs 422
Long-Run Market Supply Curve 356 Quotas 422
Constant-Cost, Increasing-Cost, and Decreasing-Cost Tariffs 425
Industries 358 LEARNING-BY-DOING EXERCISES
What Does Perfect Competition Teach Us? 363
10.1 Impact of an Excise Tax 393
9.5 Economic Rent and Producer Surplus 367 10.2 Impact of a Subsidy 400
Economic Rent 367 10.3 Impact of a Price Ceiling 407
Producer Surplus 370 10.4 Impact of a Price Floor 412
Economic Profit, Producer Surplus, Economic Rent 376 10.5 Comparing the Impact of an Excise Tax, a Price Floor,
APPENDIX Profit Maximization Implies Cost and a Production Quota 417
Minimization 384 10.6 Effects of an Import Tariff 428
PART 5 MARKET POWER
CHAPTER 11 Monopoly and Monopsony 438 11.2 The Importance of Price Elasticity
of Demand 450
How Do Firms Play Monopoly? Price Elasticity of Demand and the Profit-Maximizing
11.1 Profit Maximization by a Monopolist 440 Price 450
The Profit-Maximization Condition 440 Marginal Revenue and Price Elasticity of Demand 451
A Closer Look at Marginal Revenue: Marginal Units and Marginal Cost and Price Elasticity of Demand: The Inverse
Inframarginal Units 444 Elasticity Pricing Rule 453
Average Revenue and Marginal Revenue 445 The Monopolist Always Produces on the Elastic Region
The Profit-Maximization Condition Shown of the Market Demand Curve 454
Graphically 447 The IEPR Applies Not Only to Monopolists 456
A Monopolist Does Not Have a Supply Curve 449 Quantifying Market Power: The Lerner Index 457
