CONTENTS
List of figures = viii
List of tables = x
Preface = xi
Part Ⅰ Introduction
1 THE ECONOMIC WAY OF THINKING = 3
Introduction = 3
Substituting inputs in production = 5
Substituting one product for another = 7
Opportunity cost = 10
Economic cost and accounting cost = 13
Summary = 16
Memo = 17
Part Ⅱ The business environment
2 FIRMS, MARKETS AND INDUSTRIES = 21
Firms = 21
Markets = 24
Industries = 28
Summary = 30
3 AIMS OF BUSINESS = 31
Introduction = 31
The meaning of profit maximisation = 32
Forms of organisations = 34
Pressures for profit maximisation = 43
Summary = 45
Part Ⅲ Product markets
4 THREE MEANINGS OF COMPETITION = 49
Competitive activity = 49
Competition as a social process = 54
Competitive market structures = 55
Summary = 58
5 PURE COMPETITION, PERFECT COMPETITION AND EFFICIENT MARKETS = 59
Introduction = 59
Short-run adjustments and quasi-rents = 60
Long-run equilibria supply and economic rent = 63
Pure competition and the London cab trade = 68
Efficient markets : the Turf and the Stock Exchange = 72
Summary = 77
6 MONOPOLY AND ECONOMIC WELFARE = 79
Introduction = 79
Monopoly equilibrium = 80
Monopoly and economic welfare = 83
Price discrimination = 88
Summary = 94
7 OLIGOPOLY : INTERDEPENDENT DECISIONS = 96
Introduction = 96
Some early theories = 97
Game theory = 100
Tacit collusion = 103
0pen collusion, cartels = 107
Cost-Plus pricing = 111
Summary = 113
8 MARKET PROBLEMS : INFORMATION, EXTERNALITIES AND PROPERTY RIGHTS = 115
Introduction = 115
The economics of ignorance = 116
Markets and the environment = 122
Markets and property rights = 129
Summary = 132
Part Ⅳ Factor Markets
9 MARGINAL PRODUCTIVITY AND FACTOR DEMAND = 137
Introduction = 137
Aspects of technology = 137
Market constraints = 143
International movement of factors of production = 146
Summary = 150
10 SUPPLY, SUPPLY AND DEMAND, AND RESTRICTED COMPETITION = 151
Introduction = 151
When and where to work = 151
The Black Death = 158
Racist and sexist discrimination = 160
Summary = 164
11 MARKET COMPLICATIONS : INFORMATION, CO-OPERATION AND CONFLICT = 165
Introduction = 165
Imperfect information = 165
Internal labour markets = 168
Monopsony and monopoly = 170
Summary = 174
Part Ⅴ Conclusion
12 APPROACHES TO GENERAL EQUILIBRIUM = 179
Introduction = 179
Input-output analysis = 179
Input-output and Zimbabwe-Rhodesia = 182
Input-output patterns = 185
The existence of general equilibrium = 186
Welfare conditions = 189
Summary = 192
Notes = 194
Index = 204
