BRIEF CONTENTS • PART ONE Introduction: Markets and Prices 1 Preliminaries The Basics of Supply and Demand 21 • PART TWO Producers, Consumers, and Competitive Markets 65 Consumer Behavior 67 Individual and Market Demand 111 Uncertainty and Consumer Behavior 159 Production 201 The Cost of Production 229 Profit Maximization and Competitive Supply 279 The Analysis of Competitive Markets 317 • PART THREE Market Structure and Competitive Strategy 355 10 11 12 13 14 15 Market Power: Monopoly and Monopsony 357 Pricing with Market Power 399 Monopolistic Competition and Oligopoly 451 Game Theory and Competitive Strategy 487 Markets for Factor Inputs 529 Investment, Time, and Capital Markets 559 • PART FOUR Information, Market Failure, and the Role of Government 593 16 17 18 General Equilibrium and Economic Efficiency 595 Markets with Asymmetric Information 631 Externalities and Public Goods 661 Appendix: The Basics of Regression 700 Glossary 708 Answers to Selected Exercises 718 Photo Credits 731 Index 732 vii