Applied microeconomics

Included Index.

Part 1 Introduction: demand and supply; applying microeconomic theory - microbreweries, the cocaine epidemic, and the FCC auction of spectrum rights. Part 2 Consumer behaviour and market demand: the tastes and preferences of the consumer; consumer behaviour and individual demand; market demand; applying microeconomic theory - the case of black gold. Part 3 The firm - its technology and costs: the firm and its technology; optimal input combinations and cost functions; applying microeconomic theory - the case of milk and dairy products. Part 4 Market structure, price and output: perfect competition; monopoly; monopolistic competition and oligopoly; game theory and strategic behaviour; applying miccroeconomic theory - the case of Carmike Cinemas Inc. Part 5 Markets for inputs: price and employment of inputs; investment decisions and risk; applying microeconomic theory - the case of jetliners. Part 6 Economic efficiency: economic efficiency, externalities, and public goods; applying microeconomic theory - the case of California Water.

This textbook is suitable for students taking business oriented courses, both at MBA and undergraduate level. Airlines, the water industry, cinemas, the milk industry and petroleum are studied in depth with the help of a wide range of case-studies and end-of-chapter questions.