Microeconomics Made Simple: Basic Microeconomic Principles Explained in 100 Pages or Less PDF
Preview Microeconomics Made Simple: Basic Microeconomic Principles Explained in 100 Pages or Less
Microeconomics Made Simple: Basic Microeconomic Principles Explained in 100 Pages or Less Why is there a light bulb on the cover? In cartoons and comics, a light bulb is often used to signify a moment of clarity or sudden understanding—an “aha!” moment. The hope for the books in the “… in 100 pages or less” series is that they will help readers achieve clarity and understanding of topics that are often considered complex and confusing—hence the light bulb. Microeconomics Made Simple: Basic Microeconomic Principles Explained in 100 Pages or Less Austin Frakt, PhD Mike Piper, CPA Disclaimer The publisher and authors make no representation or warranty as to this book’s adequacy or appropriateness for any purpose. Similarly, no representation or warranty is made as to the accuracy of the material in this book. Purchasing this book does not create any client relationship or other advisory, fiduciary, or professional services relationship with the publisher or with the authors. You alone bear the sole responsibility of assessing the merits and risks associated with any financial decisions you make. Copyright © 2014 Simple Subjects, LLC No part of this publication may be reproduced or distributed without the express permission of the publisher. ISBN: 978-0-9814542-9-0 1.1 www.ObliviousInvestor.com www.TheIncidentalEconomist.com Dedication For you, the reader. We hope that this book provides you with more than enough utility to make it a worthwhile use of your resources. Your Feedback is Appreciated! As the authors of this book, we’re very interested to hear your thoughts. If you find the book helpful, please let us know. Alternatively, if you have any suggestions of ways to make the book better, we’re eager to hear that, too. Finally, if you’re unhappy with your purchase for any reason, let us know, and we’ll be happy to provide you with a refund of the current list price of the book (limited to one refund per title per household). For any of these purposes, please email Mike at [email protected]. Best Regards, Mike & Austin Table of Contents Introduction: What Is Economics? Macroeconomics vs. Microeconomics Not a Perfect Model Part One: Basic Economic Concepts 1. Maximizing Utility What about Charity? Decreasing Marginal Utility Opportunity Cost 2. Evaluating Production Possibilities Production Possibilities Frontier Absolute Advantage and Comparative Advantage 3. Demand Elasticity of Demand Change in Demand vs. Change in Quantity Demanded 4. Supply How Costs of Production Affect Supply Elasticity of Supply Change in Supply vs. Change in Quantity Supplied 5. Market Equilibrium How Market Equilibrium Is Reached The Effect of Changes in Supply and Demand 6. Government Intervention Price Floors and Price Ceilings Taxes and Subsidies Part Two: Firm Behavior in Different Types of Markets 7. Costs of Production Marginal Cost of Production Fixed vs. Variable Costs Short Run vs. Long Run Sunk Costs Are Irrelevant Accounting Costs vs. Economic Costs Average Total Costs 8. Perfect Competition Firms Are Price Takers Making Decisions at the Margin Calculating Profit or Loss Zero Economic Profits in the Long Run Firms Producing at Their Lowest Cost Producing at a Loss in the Short Run Consumer and Producer Surplus 9. Monopoly Monopolies Have Market Power Marginal Revenue Curve for a Monopoly Maximizing Profit (Producing at MC = MR) Profits and Losses for Monopolies Monopolies: Producing at a Higher Cost Loss of Surplus with a Monopoly Monopolies and Government 10. Oligopoly Firms Are Not Price Takers Collusion in an Oligopoly Cheating the Cartel Government Intervention in Oligopolies 11. Monopolistic Competition Making Decisions at the Margin
The list of books you might like
