Prices and Quantities
Fundamentals of Microeconomics

This unique approach to intermediate microeconomics reverses the standard order of topics, provides examples and solved practice problems.

Rakesh V. Vohra (Author)

9781108715690, Cambridge University Press

Paperback / softback, published 17 February 2020

220 pages, 27 b/w illus. 27 tables
24.4 x 17 x 1.1 cm, 0.44 kg

'This beautifully written textbook gives a masterfully innovative development of modern intermediate microeconomics, elegantly and concisely building core principles by moving from monopoly to imperfect competition and basic game theory, then to consumer theory and general equilibrium. Woven throughout are compelling and engaging examples drawn from classics, history, literature, and current events, making it as enjoyable to read as it is instructive, and ideally suited for learning modern economics.' Chris Shannon, University of California, Berkeley

Rakesh V. Vohra offers a unique approach to studying and understanding intermediate microeconomics by reversing the conventional order of treatment, starting with topics that are mathematically simpler and progressing to the more complex. The book begins with monopoly, which requires single variable rather than multivariable calculus and allows students to focus clearly on the fundamental trade-off at the heart of economics: margin versus volume. Imperfect competition and the contrast with monopoly follows, introducing the notion of Nash equilibrium. Perfect competition is addressed toward the end of the book, and framed as a model of non-strategic behavior by firms and agents. The last chapter is devoted to externalities, with an emphasis on how one might design competitive markets to price externalities and linking the difficulties to the problem of efficient provision of public goods. Real-life examples engage the reader while encouraging them to think critically about the interplay between model and reality.

Preface
1. Introduction
2. Margin vs volume
3. Price discrimination
4. Competition
5. Preferences and utility
6. Perfect competition
7. Externalities and public goods
Appendix A. Optimization
Index.

Subject Areas: Business mathematics & systems [KJQ], Business competition [KJF], Business & management [KJ], Microeconomics [KCC]