Microeconomics and Behaviour, 4e

Name: Microeconomics and Behaviour, 4e
Price: 5050 ISK
Availability: InStock
Author: Robert Frank; Edward Cartwright
ISBN: 9781526850287

Höfundar: Robert Frank; Edward Cartwright (Útgáfa: 4)

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The fourth European edition of Microeconomics and Behaviour builds on its core analytical foundations, and embeds them in accessible and engaging real-world examples to demonstrate the relationship between economic thinking and analysis and human behaviour. By blending theory with practical application, students are encouraged to think like economists and critically assess the technical tools of microeconomics and to find more interesting and innovative ways of applying them and develop a lasting interest in the discipline.

Key Features• Fully updated chapters, with new and expanded material on the economics of happiness, halo and decoy effects, price discrimination, the gig economy and self-employment, and partial versus general equilibrium. • Extensive pedagogical features including worked examples, key terms and definitions, in-chapter exercises, chapter summaries, and review questions to enhance understanding and retention• Economic Naturalist examples illustrate how economic principles can explain everyday experiences and observations.

New examples include: “Why does an efficient health service not do everything to keep people alive?”, “Why did Taylor Swift fans not sell their tickets for The Eras Tour?” and “Why do most cryptocurrencies fail within a few years?”Connect® ResourcesAvailable on McGraw Hill’s Connect®, the well-established online learning platform, which features our award-winning adaptive reading experience as well as resources to help faculty and institutions improve student outcomes and course delivery efficiency.

To learn more, visit mheducation. co. uk/connect Key Connect® features for this edition include:• Economic Application Based Activities that provide students with valuable practice, using problem solving skills to apply their knowledge to realistic scenarios. Students’ progress from understanding basic concepts to using their knowledge to analyse complex scenarios and solve problems. • Economic Naturalist graphing questions which have been developed to complement this key pedagogical feature from the textbook.

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Útgefandi: McGraw-Hill UK

ISBN: 9781526850287

Print ISBN: 9781526850270

Format: ePub

Útgáfa: 4

Höfundar: Robert Frank; Edward Cartwright

Tungumál: English

Útgefið: 2025-02-20

Prent takmörkun á líftíma: 100

Prent takmörkun: 2

Afritunar takmörkun: 2

Flokkar: Hagfræði

Efnisflokkar: Viðskipti og hagfræði › Rekstrarhagfræði

Kaflar

Table of Contents and Preface
Microeconomics and Behaviour
Title Page
Copyright Page
Dedication
Brief Table of Contents
Detailed Table of Contents
Preface
Guided Tour
Transform learning with Connect
The Three Pillars of Connect®
Connect® for Economics
Application-Based Activities
Interactive Graphing Tools
Smarter studying with Smartbook
The ReadAnywhere App
About the Author
Original US Author
European Adapting Author
Acknowledgements
Author Acknowledgements
Author and Publisher Acknowledgements
Create & Custom Publishing
How do I Get Started?
Make the Grade!
Chapter 1: Thinking Like an Economist
Part One: Introduction
Chapter 1 Introduction
Microeconomics and Macroeconomics
The Cost–Benefit Approach to Decisions
The Role of Economic Theory
Common Pitfalls in Decision Making
Pitfall 1. Ignoring Implicit Costs
Pitfall 2. Failing to Ignore Sunk Costs
Pitfall 3. Measuring Costs and Benefits as Proportions Rather Than Absolute Monetary Amounts
Pitfall 4. Failure to Understand the Average–Marginal Distinction
Using Marginal Benefit and Marginal Cost
Would Parents Want Their Child to Marry Homo Economicus?
Positive Questions and Normative Questions
Summary
Questions for review
Problems
Answers to in-chapter exercises
Chapter 2: Supply and Demand
Chapter 2 Introduction
Chapter Preview
Supply and Demand Curves
Equilibrium Quantity and Price
Adjustment to Equilibrium
Some Welfare Properties of Equilibrium
Free Markets and Fairness
Rent Controls
Price Supports
The Rationing and Allocative Functions of Prices
Determinants of Supply and Demand
Determinants of Demand
Determinants of Supply
Changes in Demand versus Changes in the Quantity Demanded
Predicting and Explaining Changes in Price and Quantity
The Algebra of Supply and Demand
Summary
Questions for review
Problems
Answers to in-chapter exercises
Chapter 3: Game Theory
Chapter 3 Introduction
Chapter Preview
Social Dilemmas
Commitment Problems
What Happened to the Invisible Hand?
Repeated Games
Nash Equilibrium
The Maximin Strategy
Sequential Games
Incomplete Information
Behavioural Game Theory
Summary
Questions for review
Problems
Answers to in-chapter exercises
Chapter 4: Rational Consumer Choice
Part Two: The Theory of Consumer Behaviour
Chapter 4 Introduction
Chapter Preview
The Opportunity Set or Budget Constraint
Budget Shifts Due to Price or Income Changes
Budgets Involving More than Two Goods
Non-linear Budget Constraints
Consumer Preferences
Indifference Curves
Trade-offs Between Goods
Using Indifference Curves to Describe Preferences
More-is-worse and Satiation Points
The Best Affordable Bundle
Corner Solutions
Indifference Curves When There Are More Than Two Goods
An Application of the Rational Choice Model
Theory of Choice and Household Production
Summary
Questions for review
Problems
Answers to in-chapter exercises
Appendix 4 The Utility Function Approach to Consumer Choice
The Utility Function Approach to Consumer Choice
Finding the Best Affordable Bundle Algebraically
Appendix 4 Problems
Chapter 5: Individual and Market Demand
Chapter 5 Introduction
Chapter Preview
The Effects of Changes in Price
The Price–Consumption Curve
The Individual Consumer’s Demand Curve
The Effects of Changes in Income
The Income–Consumption Curve
The Engel Curve
Normal and Inferior Goods
The Income and Substitution Effects of a Price Change
Slutsky versus Hicksian Substitution Effect
Giffen Goods
Perfect Substitutes and Complements
Consumer Responsiveness to Changes in Price
Market Demand: Aggregating Individual Demand Curves
Price Elasticity of Demand
A Geometric Interpretation of Price Elasticity
Elasticity Along a Linear Demand Curve
The Unit-free Property of Elasticity
Determinants of Price Elasticity of Demand
Elasticity and Total Expenditure
Income Elasticity of Demand
The Importance of Income Distribution
Forecasting Economic Trends
Cross-price Elasticities of Demand
Summary
Questions for review
Problems
Answers to in-chapter exercises
Appendix 5 Additional Topics in Demand Theory
The Constant Elasticity Demand Curve
Generating Demand and Engel Curves Algebraically
Appendix 5 Problems
Answers to in-appendix exercises
Chapter 6: Applications of Rational Choice and Demand Theories
Chapter 6 Introduction
Chapter Preview
Using Price Elasticity of Demand
Demand for Public Transport
Sin Taxes
Tax Incidence
Welfare Comparisons
A Bias in the Consumer Price Index
The Income-compensated Demand Curve
Consumer Surplus
Using Demand Curves to Measure Consumer Surplus
Compensating Variation
Application: Two-part Pricing
Tax Burden and Equivalent Variation
Willingness to Pay and Accept
Summary
Questions for review
Problems
Answers to in-chapter exercises
Chapter 7: Choice under Uncertainty and the Economics of Information
Chapter 7 Introduction
Chapter Preview
Choice under Uncertainty
Probability and Expected Value
The von Neumann–Morgenstern Expected Utility Model
Paying to Reduce Uncertainty
Expected Utility and the Rational Choice Model
The Search for High Wages and Low Prices
Insuring against Bad Outcomes
Risk Pooling
The Reservation Price for Insurance
The Economics of Information
Adverse Selection
Adverse Selection and Insurance
Statistical Discrimination
Moral Hazard
Signalling
The Costly-to-fake Principle
The Full-disclosure Principle
Conspicuous Consumption as Ability Signalling
Summary
Questions for review
Problems
Answers to in-chapter exercises
Chapter 8: Explaining Tastes: The Importance of Altruism and Other Non-egoistic Behaviour
Chapter 8 Introduction
Chapter Preview
The Present-aim Standard
Voting in Elections
Giving Money to Friends (or Strangers)
Concerns about Fairness
Evolution and Preferences
A Parable of Hawks and Doves
What Economics Can Learn from Biology
The Economics of Happiness
Sustaining Cooperation
Population Movements When Cooperators and Defectors Look Alike
Population Movements When Cooperators Are Easily Identified
Imperfect Mimicry and the Costs of Vigilance
Tastes Not Only Can Differ, They Must Differ
Summary
Questions for review
Problems
Answers to in-chapter exercises
Chapter 9: Cognitive Limitations and Consumer Behaviour
Chapter 9 Introduction
Chapter Preview
Bounded Rationality and Two Systems
Simple Heuristics That Make Us Smart (and Sometimes Dumb)
Framing and Heuristics
Two Systems Model
Don’t Throw Away the Rational Choice Model
The Difficulty of Actually Deciding
The Asymmetric Value Function
Sunk Costs and Out-of-pocket Expenses
Choice under Uncertainty
Prospect Theory
Judgemental Bias and Heuristics
Availability
Representativeness
Anchoring and Adjustment
The Psychophysics of Perception
Intertemporal Choice
The Self-control Pitfall
Nudge and Behaviour Change
Save More Tomorrow
Summary
Questions for review
Problems
Answers to in-chapter exercises
Chapter 10: Production
Part Three: The Theory of the Firm and Market Structure
Chapter 10 Introduction
Chapter Preview
The Input–Output Relationship, or Production Function
Intermediate Products
Short Run and Long Run
Production in the Short Run
Total, Marginal and Average Products
The Relationships between Total, Marginal and Average Product Curves
The Practical Significance of the Average–Marginal Distinction
Production in the Long Run
The Marginal Rate of Technical Substitution
Returns to Scale
Showing Returns to Scale on the Isoquant Map
The Distinction between Diminishing Returns and Decreasing Returns to Scale
The Logical Puzzle of Decreasing Returns to Scale
Summary
Questions for review
Problems
Answers to in-chapter exercises
Appendix 10 Mathematical Extensions of Production Theory
The Average–Marginal Distinction
Some Examples of Production Functions
A Mathematical Definition of Returns to Scale
Appendix 10 Problems
Answers to in-appendix exercises
Chapter 11: Costs
Chapter 11 Introduction
Chapter Preview
Costs in the Short Run
Graphing the Total, Variable and Fixed Cost Curves
Other Short-run Costs
Graphing the Short-run Average and Marginal Cost Curves
The Relationship between MP, AP, MC and AVC
Cost Minimization and Allocating Production between Two Processes
Costs in the Long Run
Choosing the Optimal Input Combination
The Relationship between Optimal Input Choice and Long-run Costs
Long-run Costs and the Structure of Industry
The Relationship between Long-run and Short-Run Cost Curves
Summary
Questions for review
Problems
Answers to in-chapter exercises
Appendix 11 Mathematical Extensions of the Theory of Costs
More on the Relationship between Long-run and Short-run Cost Curves
The Calculus Approach to Cost Minimization
Appendix 11 Problems
Answers to in-appendix exercises
Chapter 12: Perfect Competition
Chapter 12 Introduction
Chapter Preview
The Goal of Profit Maximization
What is Economic Profit?
Do Firms Profit Maximize?
The Four Conditions for Perfect Competition
The Short-run Condition for Profit Maximization
The Shutdown Condition
The Short-run Competitive Industry Supply
The Short-run Competitive Market
The Efficiency of Short-run Competitive Equilibrium
Producer Surplus
Adjustments in the Long Run
The Invisible Hand
The Long-run Competitive Industry Supply Curve
Long-run Supply Curve with U-shaped LAC Curves
Industry Supply When LAC Curves Are Not U-shaped
How Changing Input Prices Affect Long-run Supply
The Elasticity of Supply
Applying the Competitive Model
Price Supports as a Device for Saving Family Farms
The Adoption of Cost-saving Innovations
Who Benefits from Innovation?
Summary
Questions for review
Problems
Answers to in-chapter exercises
Chapter 13: Monopoly
Chapter 13 Introduction
Chapter Preview
Defining Monopoly
Five Sources of Monopoly
Exclusive Control over Important Inputs
Economies of Scale
Patents
Network Economies
Government Licences or Franchises
The Profit-maximizing Monopolist
The Monopolist’s Total Revenue Curve
Marginal Revenue
Marginal Revenue and Elasticity
Graphing Marginal Revenue
Graphical Interpretation of the Short-run Profit Maximization Condition
The Profit-maximizing Mark-up
The Monopolist’s Shutdown Condition
A Monopolist Has No Supply Curve
Adjustments in the Long Run
The Efficiency Loss from Monopoly
Dynamic Efficiency of Monopoly
Public Policy Towards Natural Monopoly
State Ownership and Management
State Regulation of Private Monopolies
Exclusive Contracting for Natural Monopoly
Vigorous Enforcement of Antitrust Laws
A Laissez-faire Policy Towards Natural Monopoly
Price Discrimination
Third-degree Price Discrimination
The Perfectly Discriminating Monopolist
Second-degree Price Discrimination
The Hurdle Model of Price Discrimination
Efficiency of a Price-discriminating Monopolist
Summary
Questions for review
Problems
Answers to in-chapter exercises
Chapter 14: Imperfect Competition
Chapter 14 Introduction
Chapter Preview
Monopolistic Competition
The Chamberlin Model
Chamberlinian Equilibrium in the Short Run
Chamberlinian Equilibrium in the Long Run
Perfect Competition versus Chamberlinian Monopolistic Competition
Criticisms of the Chamberlin Model
A Spatial Interpretation of Monopolistic Competition
Circular City Model
The Optimal Number of Locations
The Analogy to Product Characteristics
Paying for Variety
Hotelling Model
Some Specific Oligopoly Models
The Cournot Model
The Bertrand Model
The Stackelberg Model
Comparison of Outcomes
Entry Deterrence
Competition and Increasing Returns to Scale
Collusion
Repeated Play and Collusion
Price Discrimination and Oligopoly
Advertising
Consumer Preferences and Advertising
Summary
Questions for review
Problems
Answers to in-chapter exercises
Chapter 15: Labour
Part Four: Factor Markets
Chapter 15 Labour
Chapter Preview
The Perfectly Competitive Firm’s Demand for Labour
Long-run Demand for Labour
The Market Demand Curve for Labour
An Imperfect Competitor’s Demand for Labour
The Supply of Labour
Is Leisure a Giffen Good?
Taxes and Welfare Reform
The Non-economist’s Reaction to the Labour Supply Model
The Market Supply Curve
Compensating Wage Differentials
The Internal Wage Structure
Monopsony
Minimum Wage Laws
Labour Unions
International Labour Market
Immigration and Wages
Discrimination in the Labour Market
Statistical Discrimination
Winner-takes-all Markets
Summary
Questions for review
Problems
Answers to in-chapter exercises
Chapter 16: Capital
Chapter 16 Capital
Chapter Preview
Financial Capital and Real Capital
The Intertemporal Choice Model
Intertemporal Consumption Bundles
The Intertemporal Budget Constraint
Real versus Nominal Interest Rates
Intertemporal Indifference Curves
The Permanent Income and Life-cycle Hypotheses
Factors Accounting for Differences in Time Preference
Monetary Policy
The Demand for Real Capital
The Relationship Between the Rental Rate and the Interest Rate
The Criterion for Buying a Capital Good
Interest Rate Determination
The Market for Stocks and Bonds
The Efficient Market Hypothesis
The Anomaly of the Investment Newsletter
Sound Advice for Investors
Economic Rent
Exhaustible Resources as Inputs in Production
Summary
Questions for review
Problems
Answers to in-chapter exercises
Chapter 17: General Equilibrium and Market Efficiency
Part Five: Externalities, Public Goods and Welfare
Chapter 17 Introduction
Chapter Preview
Partial versus General Equilibrium
A Simple Exchange Economy
Efficiency and Fairness
Market Exchange
How Prices Adjust
The Invisible Hand Theorem
Efficiency in Production
Efficiency in Product Mix
Gains from International Trade
Taxes in General Equilibrium
Other Sources of Inefficiency
What to Make of the Welfare Theorems?
Summary
Questions for review
Problems
Answers to in-chapter exercises
Chapter 18: Externalities, Property Rights and the Coase Theorem
Chapter 18 Introduction
Chapter Preview
Externalities and Market Efficiency
Externalities in Markets
The Reciprocal Nature of Externalities
The Coase Theorem
Positive Externalities
Property Rights
The Tragedy of the Commons
Positional Externalities
Limiting the Work Week
Workplace Conditions
Taxing Externalities
Taxation versus Regulation
Summary
Questions for review
Problems
Answers to in-chapter exercises
Chapter 19: Government
Chapter 19 Introduction
Chapter Preview
Public Goods
The Optimal Quantity of a Public Good
Lindahl Equilibrium
Private Provision of Public Goods
Sale of By-products
Development of New Means to Exclude Non-payers
Publicly Provided Goods
The Economics of Clubs
Public Choice
Majority Voting
Agenda Manipulation
The Median Voter Theorem
Cost–Benefit Analysis
Rent Seeking
Government Failure
Income Distribution
The Rawlsian Criticism of the Marginal Productivity System
Practical Reasons for Redistribution
Fairness and Efficiency
Methods of Redistribution
The Negative Income Tax
Summary
Questions for review
Problems
Answers to in-chapter exercises
Index
Index
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Figure 15.14 Text Alternative (Chapter 15)
Figure 15.15 Text Alternative (Chapter 15)
Figure 15.16 Text Alternative (Chapter 15)
Figure 15.17 Text Alternative (Chapter 15)
Figure 15.18 Text Alternative (Chapter 15)
Figure 15.19 Text Alternative (Chapter 15)
Figure 15.20 Text Alternative (Chapter 15)
Figure 15.21 Text Alternative (Chapter 15)
Figure 15.22 Text Alternative (Chapter 15)
Figure 15.24 Text Alternative (Chapter 15)
2 graphs Text Alternative (Chapter 15)
A graph Text Alternative (Chapter 15)
A graph-1 Text Alternative (Chapter 15)
A graph-2 Text Alternative (Chapter 15)
A graph plots Text Alternative (Chapter 15)
A graph plots-1 Text Alternative (Chapter 15)
A graph plots-2 Text Alternative (Chapter 15)
A graph plots-3 Text Alternative (Chapter 15)
A graph plots-4 Text Alternative (Chapter 15)
Figure 16.1 Text Alternative (Chapter 16)
Figure 16.2 Text Alternative (Chapter 16)
Figure 16.3 Text Alternative (Chapter 16)
Figure 16.4 Text Alternative (Chapter 16)
Figure 16.5 Text Alternative (Chapter 16)
Figure 16.6 Text Alternative (Chapter 16)
Figure 16.7 Text Alternative (Chapter 16)
Figure 16.8 Text Alternative (Chapter 16)
Figure 16.9 Text Alternative (Chapter 16)
Figure 16.10 Text Alternative (Chapter 16)
Figure 16.11 Text Alternative (Chapter 16)
Figure 16.12 Text Alternative (Chapter 16)
Figure 16.13 Text Alternative (Chapter 16)
Figure 16.14 Text Alternative (Chapter 16)
Figure 16.15 Text Alternative (Chapter 16)
Figure 16.16 Text Alternative (Chapter 16)
Figure 16.17 Text Alternative (Chapter 16)
Figure 16.18 Text Alternative (Chapter 16)
Figure 17.1 Text Alternative (Chapter 17)
Figure 17.2 Text Alternative (Chapter 17)
Figure 17.3 Text Alternative (Chapter 17)
Figure 17.4 Text Alternative (Chapter 17)
Figure 17.5 Text Alternative (Chapter 17)
Figure 17.6 Text Alternative (Chapter 17)
Figure 17.7 Text Alternative (Chapter 17)
Figure 17.8 Text Alternative (Chapter 17)
Figure 17.9 Text Alternative (Chapter 17)
Figure 17.10 Text Alternative (Chapter 17)
Figure 17.11 Text Alternative (Chapter 17)
Figure 17.12 Text Alternative (Chapter 17)
Figure 17.13 Text Alternative (Chapter 17)
Figure 17.14 Text Alternative (Chapter 17)
Figure 17.15 Text Alternative (Chapter 17)
Figure 17.16 Text Alternative (Chapter 17)
Figure 17.17 Text Alternative (Chapter 17)
A rectangle Text Alternative (Chapter 17)
A graph Text Alternative (Chapter 17)
Figure 18.1 Text Alternative (Chapter 18)
Figure 18.2 Text Alternative (Chapter 18)
Figure 18.3 Text Alternative (Chapter 18)
Figure 18.4 Text Alternative (Chapter 18)
Figure 18.5 Text Alternative (Chapter 18)
Figure 18.6 Text Alternative (Chapter 18)
Figure 18.7 Text Alternative (Chapter 18)
Figure 18.8 Text Alternative (Chapter 18)
Figure 19.1 Text Alternative (Chapter 19)
Figure 19.2 Text Alternative (Chapter 19)
Figure 19.3 Text Alternative (Chapter 19)
Figure 19.4 Text Alternative (Chapter 19)
Figure 19.5 Text Alternative (Chapter 19)
Figure 19.6 Text Alternative (Chapter 19)
Figure 19.7 Text Alternative (Chapter 19)
A graph Text Alternative (Chapter 19)
A graph-1 Text Alternative (Chapter 19)
A graph-2 Text Alternative (Chapter 19)