000 | 00748camuuu200253 a 4500 | |

001 | 000000425945 | |

005 | 19980813142826.0 | |

008 | s1993 nyua 001 0 eng | |

010 | ▼a 92031208 | |

020 | ▼a 0393963209 | |

040 | ▼a DLC ▼c DLC ▼d IAI ▼d UKM ▼d PIT | |

049 | 1 | ▼l 111068235 ▼l 412916024 |

050 | 0 0 | ▼a HB172 ▼b .V34 1993 |

082 | 0 0 | ▼a 338.5 ▼2 20 |

090 | ▼a 338.5 ▼b V299i3 | |

100 | 1 | ▼a Varian, Hal R. |

245 | 1 0 | ▼a Intermediate microeconomics : ▼b a modern approach / ▼c Hal R. Varian. |

250 | ▼a 3rd ed. | |

260 | ▼a New York : ▼b W.W. Norton & Company, ▼c c1993. | |

300 | ▼a xxiv, 623, A36 p. : ▼b ill. ; ▼c 25 cm. | |

504 | ▼a Includes bibliographical references and index. | |

650 | 0 | ▼a Microeconomics. |

653 | 0 | ▼a Microeconomics |

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No. 1 | Location Main Library/Western Books/ | Call Number 338.5 V299i3 | Accession No. 111068235 | Availability Available | Due Date | Make a Reservation | Service |

No. 2 | Location Main Library/Western Books/ | Call Number 338.5 V299i3 | Accession No. 412916024 | Availability Available | Due Date | Make a Reservation | Service |

### Contents information

#### Table of Contents

CONTENTS 1 The Market Constructing a Model = 1 Optimization and Equilibrium = 3 The Demand Curve = 3 The Supply Curve = 5 Market Equilibrium = 7 Comparative Statics = 9 Other Ways to Allocate Apartments = 11 The Discriminating Monopolist : The Ordinary Monopolist : Rent Control Which Way Is Best? = 14 Pareto Efficiency = 15 Comparing Ways to Allocate Apartments = 16 Equilibrium in the Long Run = 17 Summary = 18 Review Questions = 19 2 Budget Constraint The Budget Constraint = 20 Two Goods Are Often Enough = 21 Properties of the Budget Set = 22 How the Budget Line Changes = 24 The Numeraire = 26 Taxes, Subsidies, and Rationing = 26 Example : The Food Stamp Program Budget Line Changes = 31 Summary = 31 Review Questions = 32 3 Preferences Consumer Preferences = 34 Assumptions about Preferences = 35 Indifference Curves = 36 Examples of Preferences = 37 Perfect Substitutes : Perfect Complements : Bads : Neutrals : Satiation : Discrete Goods : Well-Behaved Preferences = 44 The Marginal Rate of Substitution = 48 Other Interpretations of the MRS = 50 Behavior of the MRS = 51 Summary = 52 Review Questions = 52 4 Utility Cardinal Utility = 57 Constructing a Utility Function = 58 Some Examples of Utility Functions = 59 Example : Indifference Curves from Utility Perfect Substitutes : Perfect Complements : Quasilinear Preferences : Cobb-Douglas Preferences : Marginal Utility = 65 Marginal Utility and MRS = 66 Utility for Commuting = 67 Summary = 69 Review Questions = 70 Appendix = 70 Example : Cobb-Douglas Preferences 5 Choice Optimal Choice = 73 Consumer Demand = 78 Some Examples = 78 Perfect Substitutes : Perfect Complements : Neutrals and Bads : Discrete Goods : Concave Preferences : Cobb-Douglas Preferences Estimating Utility Functions = 83 Implications of the MRS Condition = 85 Choosing Taxes = 86 Summary = 89 Review Questions = 88 Appendix = 90 Example : Cobb-Douglas Demand Functions 6 Demand Normal and Inferior Goods = 96 Income Offer Curves and Engel Curves = 97 Some Examples = 99 Perfect Substitutes : Perfect Complements : Cobb-Douglas Preferences : Homothetic Preferences : Quasilinear Preferences : Ordinary Goods and Giffen Goods 103 The Offer Curve and the Demand Curve = 106 Some Examples = 107 Perfect Substitutes : Perfect Complements : A Discrete Good : Substitutes and Complements = 111 The Inverse Demand Curve = 112 Summary = 114 Review Questions = 115 Appendix = 115 7 Revealed Preference The Idea of Revealed Preference = 118 From Revealed Preference to Preference = 118 Recovering Preferences = 121 The Weak Axiom of Revealed Preference = 123 Checking WARP = 124 The Strong Axiom of Revealed Preference = 127 How to Check SARP = 128 Index Numbers = 129 Price Indices = 131 Example : Indexing Social Security Payments Summary = 133 Review Questions = 134 8 Slutsky Equation The Substitution Effect = 136 Example : Calculating the Substitution Effect The Income Effect = 140 Example : Calculating the Income Effect Sign of the Substitution Effect = 141 The Total Change in Demand = 142 Rates of Change = 143 The Law of Demand = 146 Examples of Income and Substitution Effects = 146 Examples : Rebating a Tax Another Substitution Effect = 150 Compensated Demand Curves = 153 Summary = 153 Review Questions = 154 Appendix = 154 Example : Rebating a Small Tax 9 Buying and Selling Net and Gross Demands = 157 The Budget Constraint = 158 Changing the Endowment = 160 Price Changes = 161 Offer Curves and Demand Curves = 164 The Slutsky Equation Revisited = 166 Use of the Slutsky Equation = 168 Example : Calculating the Endowment Income Effect Labor Supply = 170 The Budget Constraint : Comparative Statics of Labor Supply = 171 Example : Overtime and the Supply of Labor Summary = 175 Review Questions = 176 Appendix = 176 10 Intertemporal Choice The Budget Constraint = 179 Preferences for Consumption = 182 Comparative Statics = 183 The Slutsky Equation and Intertemporal Choice = 184 Inflation = 186 Present Value : A Closer Look = 188 Analyzing Present Value for Several Periods = 189 Use of Present Value = 190 Example : Valuing a Stream of Payments Example : The True Cost of a Credit Card Bonds = 194 Example : Installment Loans Taxes = 196 Example : Scholarships and Savings Choice of the Interest Rate = 197 Summary = 188 Review Questions = 198 11 Asset Markets Rates of Return = 199 Arbitrage and Present Value = 201 Adjustments for Differences among Assets = 201 Assets with Consumption Returns = 202 Taxation of Asset Returns = 203 Applications = 204 Depletable Resources : When to Cut a Forest : Example : Gasoline Prices during the Gulf War Financial Institutions = 208 Summary = 208 Review Questions = 210 Appendix = 210 12 Uncertainty Contingent Consumption = 212 Utility Functions and Probabilities = 216 Example Some Examples of Utility Functions Expected Utility = 217 Why Expected Utility Is Reasonable = 218 Risk Aversion = 220 Example : The Demand for Insurance Diversification = 224 Risk Spreading = 224 Role of the Stock Market = 226 Summary = 226 Review Questions = 226 Appendix = 227 Example : The Effect of Taxation on Investment in Risky Assets 13 Risky Assets Mean-Variance Utility = 230 Measuring Risk = 235 Equilibrium in a Market for Risky Assess = 237 How Returns Adjust = 238 Example : Ranking Mutual Funds Summary = 242 Review Questions = 242 14 Consumer's Surplus Demand for a Discrete Good = 244 Constructing Utility from Demand = 245 Other Interpretations of Consumer's Surplus = 246 From Consumer's Surplus to Consumers' Surplus = 247 Approximating a Continuous Demand = 247 Quasilinear Utility = 247 Interpreting the Change in Consumer's Surplus = 248 Example : The Change in Consumer's Surplus Compensating and Equivalent Variation = 250 Example : Compensating and Equivalent Variations Example : Compensating and Equivalent Variation for Quasilinear Preferences Producer's Surplus = 254 Calculating Gains and Losses = 256 Summary = 257 Review Questions = 258 Appendix = 258 Example : A Few DemandFunctions Example : CV, EV, and Consumer's Surplus 15 Market Demand From Individual to Market Demand = 261 The Inverse Demand Curve = 263 Example : Adding Up "Linear" Demand Curves Discrete Goods = 264 The Extensive and the Intensive Margin = 264 Elasticity = 265 Example : The Elasticity of a Linear Demand Curve Elasticity and Demand = 267 Elasticity and Revenue = 268 Example : Strikes and Profits Constant Elasticity Demands = 271 Elasticity and Marginal Revenue = 272 Example : Setting a Price Marginal Revenue Curves = 274 Summary = 275 Review Questions = 276 Appendix = 276 Example : The Laffer Curve Example : Another Expression for Elasticity 16 Equilibrium Supply = 282 Market Equilibrium = 282 Two Special Cases = 283 Inverse Demand and Supply Curves = 284 Example : Equilibrium with Linear Curves Comparative Statics = 286 Example : Shifting Both Curves Taxes = 287 Example : Taxation with Linear Demand and Supply Passing Along a Tax = 291 The Deadweight Loss of a Tax = 293 Example : The Market for Loans Example : Foot Subsidies Pareto Efficiency = 299 Example : Waiting in Line Summary = 301 Review Questions = 302 17 Technology Inputs and Outputs = 303 Describing Technological Constraints = 304 Examples of Technology = 305 Fixed Proportions : Perfect Substitutes : Cobb-Douglas : Properties of Technology = 307 The Marginal Product = 308 The Technical Rate of Substitution = 309 Diminishing Marginal Product = 310 Diminishing Technical Rate of Substitution = 310 The Long Run and the Short Run = 311 Returns to Scale = 311 Summary = 313 Review Questions = 314 18 Profit Maximization Profits = 316 The Organization of Firms = 317 Profits and Stock Market Value = 317 Fixed and Variable Factors = 319 Short-Run Profit Maximization = 319 Comparative Statics = 321 Profit Maximization in the Long Run = 322 Inverse Factor Demand Curves = 323 Profit Maximization and Returns to Scale = 324 Revealed Profitability = 325 Example : How Do Farmers React to Price Supports? Cost Minimization = 329 Summary = 329 Review Questions = 380 Appendix = 331 19 Cost Minimization Cost Minimization = 333 Example : Minimizing Costs for Specific Technologies Revealed Cost Minimization = 337 Returns to Scale and the Cost Function = 338 Long-Run and Short-Run Costs = 340 Fixed and Quasi-Fixed Costs = 342 Summary = 342 Review Questions = 342 Appendix = 343 20 Cost Curves Average Costs = 346 Marginal Costs = 348 Marginal Costs and Variable Costs = 350 Example : Specific Cost Curves Example : Marginal Cost Curves for Two Plants Long-Run Costs = 354 Discrete Levels of Plant Size = 357 Long-Run Marginal Costs = 358 Summary = 359 Review Questions = 360 Appendix = 360 21 Firm Supply Market Environments = 362 Pure Competition = 363 The Supply Decision of a Competitive Firm = 366 An Exception = 367 Another Exception = 368 The Inverse Supply Curve = 368 Profits and Producer's Surplus = 369 Example : The Supply Curve for a Specific Cost Function The Long-Run Supply Curve of a Firm = 374 Long-Run Constant Average Costs = 376 Summary = 377 Review Questions = 377 Appendix = 378 22 Industry Supply Short-Run Industry Supply = 379 Industry Equilibrium in the Short Run = 380 Industry Equilibrium in the Long Run = 381 The Long-Run Supply Curve = 383 Example : Taxation in Long Run and in Short Run The Meaning of Zero Profits = 387 Fixed Factors and Economic Rent = 388 Economic Rent = 390 Rental Rates and Prices = 391 The Politics of Rent = 392 Example : Farming the Government Energy Policy = 393 Two-Tiered Oil Pricing : Price Controls : The Entitlement Program Summary = 398 Review Questions = 398 23 Monopoly Maximizing Profits = 400 Linear Demand Curve and Monopoly = 401 Markup Pricing = 403 Example : The Impact of Taxes on a Monopolist Inefficiency of Monopoly = 405 Deadweight Loss of Monopoly = 407 Example : The Optimal Life of a Patent Natural Monopoly = 410 What Causes Monopolies? = 412 Example : Diamonds Are Forever Summary = 414 Review Questions = 415 Appendix = 416 Example : Value Taxes and Quantity Taxes 24 Monopoly Behavior Price Discrimination = 420 First-Degree Price Discrimination = 420 Second-Degree Price Discrimination = 421 Third-Degree Price Discrimination = 422 Example : Linear DemandCurves Example : Calculating Optimal Price Discrimination Example : Price Discrimination in Academic Journals Two-Part Tariffs = 426 Monopolistic Competition = 427 Example : A Location Model of Product Differentiation Product Differentiation = 433 Summary = 433 Review Questions = 434 25 Factor Markets Monopoly in the Output Market = 435 Monopsony = 438 Example : The Minimum Wage Upstream and Downstream Monopolies = 442 Summary = 444 Review Questions = 445 Appendix = 445 26Oligopoly Choosing a Strategy = 448 Quantity Leadership = 448 The Follower's Problem : The Leader's Problem : Price Leadership = 454 Comparing Price Leadership and Quantity Leadership = 456 Simultaneous Quantity Setting = 456 An Example of Cournot Equilibrium = 458 Adjustment to Equilibrium = 460 Many Firms in Cournot Equilibrium = 460 Simultaneous Price Setting = 461 Collusion = 462 Example : Price Matching and Competition Example : Voluntary Export Restraints Comparison of the Solutions = 467 Summary = 467 Review Questions = 468 27 Game Theory The Payoff Matrix of a Game = 469 Nash Equilibrium = 47l Mixed Strategies = 472 The Prisoner's Dilemma = 473 Repeated Games = 475 Enforcing a Cartel = 476 Sequential Games = 477 A Game of Entry Deterrence = 479 Summary = 481 Review Questions = 481 28 Exchange The Edgeworth Box = 484 Trade = 486 Pareto Efficient Allocations = 487 Market Trade = 489 The Algebra of Equilibrium = 491 Walras' Law = 493 Relative Prices = 494 Example : An Algebraic Example of Equilibrium The Existence of Equilibrium = 496 Equilibrium and Efficiency = 497 The Algebra of Efficiency = 498 Example : Monopoly in the Edgeworth Box Efficiency and Equilibrium = 501 Implications of the First Welfare Theorem = 503 Implications of the Second Welfare Theorem = 505 Summary = 507 Review Questions = 508 Appendix = 508 29 Production The Robinson Crusoe Economy = 510 Crusoe, Inc. = 512 The Firm = 513 Robinson's Problem = 514 Putting Them Together = 515 Different Technologies = 516 Production and the First Welfare Theorem = 518 Production and the Second Welfare Theorem = 519 Production Possibilities = 519 Comparative Advantage = 521 Pareto Efficiency = 523 Castaways, Inc. = 525 Robinson and Friday as Consumers = 527 Decentralized Resource Allocation = 528 Summary = 528 Review Questions = 529 Appendix = 530 30 Welfare Aggregation of Preferences = 533 Social Welfare Functions = 535 Welfare Maximization = 537 Individualistic Social Welfare Functions = 539 Fair Allocations = 540 Envy and Equity = 541 Summary = 543 Review Questions = 543 Appendix = 544 31 Externalities Smokers and Nonsmokers = 546 Quasilinear Preferences and the Coase Theorem = 549 Production Externalities = 551 Example : Pollution Vouchers Interpretation of the Conditions = 556 Market Signals = 559 The Tragedy of the Commons = 559 Example : Overfishing Automobile Pollution = 563 Summery = 564 Review Questions = 565 32 Law and Economics Crime and Punishment = 566 Qualifications = 569 Liability Law = 570 Bilateral Accidents = 572 Treble Damages in Antitrust Law = 574 Seeking to Be Damaged : Which Model Is Right? = 577 Summary = 577 Review Questions = 577 33 Public Goods When to Provide a Public Good? = 579 Private Provision of the Public Good = 583 Free Riding = 584 Different Levels of the Public Good = 585 Quasilinear Preferences and Public Goods = 587 Example : Pollution Revisited The Free Rider Problem = 589 Comparison to Private Goods = 591 Voting = 592 Example : Agenda Manipulation Demand Revelation = 595 Example : An Example of the Clarke Tax Problems with the Clarke Tax = 599 Summary = 600 Review Questions = 600 Appendix = 601 34 Information The Market for Lemons = 603 Quality Choice = 604 Choosing the Quality : Adverse Selection = 606 Moral Harvard = 608 Moral Hazard and Adverse Selection = 609 Signaling = 610 Example : The Sheepskin Effect Incentives = 614 Example : Voting Rights in the Corporation Example : Chinese Economic Reforms Asymmetric Information = 619 Example : Monitoring Costs Example : The Grameen Bank Summary = 622 Review Questions = 623 35 Mathematical Appendix Functions = Al Graphs = A2 Properties of Functions = A2 Inverse Functions = A3 Equations and Identities = A3 Linear Functions = A4 Changes and Rates of Change = A4 Slopes and Intercepts = A6 Absolute Values and Logarithms = A6 Derivatives = A6 Second Derivatives = A7 The Product Rule and the Chain Rule = A8 Partial Derivatives = A8 Optimization = A8 Constrained Optimization = A10 Answers = All Index = A29