IMS Content 1.2 <langstring xml:lang="en-US">WinEcon - Introduction to Microeconomics</langstring> A fully-interactive introduction to the principles of microeconomics. Interactive microeconomics course WinEcon - Introduction to Microeconomics What is Economics Introduction to Economics Introduction Introduction to Economics The Economic Approach - Rationality Objectives and Actions: The Squash Club Objectives and Actions: Allocating a Health Budget Objectives and Actions: Looking Ahead Economic Modelling Summary Introduction to Demand and Supply Introduction to Supply and Demand Introduction Demand Introduction Factors Affecting Demand The Demand Curve of an Individual Shifts in an Individual's Demand Curve The Product Demand Curve Shifts in the Product Demand Curve Summary Supply Introduction Factors Affecting Supply The Supply Curve of a Firm Shifts in the Supply Curve of a Firm The Product Supply Curve Shifts in the Product Supply Curve Summary Supply and Demand Analysis Introduction Market Equilibrium Comparative Statics Agricultural Support Government Intervention The Cobweb Model: A Divergent Cobweb The Cobweb Model: A Convergent Cobweb Summary Elasticity Introduction The Concept of Elasticity Elasticity and Smoking Price Elasticity of Demand Price Elasticity and Total Revenue Point Elasticity - Linear Demand Curve Point Elasticity - Non-linear Demand Curve Demand Curves with Constant Elasticity Factors Affecting PED Income Elasticity of Demand Cross Elasticity of Demand Elasticity of Supply Ruby Earrings and PES Price Elasticity of Supply Price Elasticity and the Slope of the Supply Curve Point Elasticity - Supply Factors Affecting PES Summary Summary of Demand and Supply Summary Intermediate Demand Introduction to Intermediate Demand Introduction Consumer Behaviour Introduction Consumption Decisions Summary Utility Analysis Introduction Total & Marginal Utility Utility and Demand Choice of Goods Summary About Indifference Curves Introduction Elements of the Consumer Choice Model Discovering Indifference Curves Assumptions of Indifference Curves Non-Standard Indifference Curves Summary The Budget Line Introduction The Budget Line Drawing the Budget Line Changing the Budget Line Summary Indifference Curve Analysis Introduction Optimal Consumption Choice Income - Consumption Curve The Engel Curve Price - Consumption Curve Deriving the Demand Curve Summary The Income & Substitution Effects Introduction The Effect of a Price Change The Substitution Effect The Income Effect The Income & Substitution Effects Inferior Goods Summary Summary of Intermediate Demand Summary Production and Costs Introduction to Production and Costs Introduction Short-Run Production Introduction Production and Factor Inputs The Short-Run Production Function Diminishing Returns in Production The Law of Variable Proportions Modern Production Methods Modern Production Methods: an example Short-Run Production Functions: a numerical example Marginal and Average Physical Product of Labour: a numerical example Mathematics of the Marginal Product Summary Production at Minimum Cost in the Long Run Introduction The Long-Run Production Function Output against Labour Curve as Capital is Increased The Isocost Line Factors Affecting the Isocost Line The Slope of the Isocost Line Isoquants and Production Rays Technical Efficiency The Shape of the Isoquant: factor substitutability The Slope of the Isoquant: factor substitutability The Shape of the Isoquant: marginal rate of substitution Producing at Minimum Cost Cost Minimisation for a Fixed Output Level Maximum Output for a Fixed Budget Changes in Factor Prices: factor prices Changes in Factor Prices: an example Summary Short-Run Costs Introduction Short-Run Costs and Labour Productivity Short-Run Cost Definition Drawing Short-Run Cost Curves Positioning Short-Run Cost Curves Deriving the Short-Run Average Fixed (AFC) and Average Variable Cost (AVC) Curves The Shape of the Average Total Cost (AC) Curve The Shape of the Marginal Cost (MC) Curve Deriving the Short-Run MC and AC Curves: a numerical example Mathematics of Marginal Cost Deriving Short-Run Total Cost Curves Summary of Short-Run Costs Cost Volume Profit (CVP) Analysis Introduction Cost Volume Profit (CVP) Analysis Cost Volume Profit Assumptions CVP: graphical analysis CVP: algebraic analysis Equation Showing CVP Required Output Level CVP: an illustration CVP: a numerical example Summary of Cost Volume Profit (CVP) Analysis Comparing Long and Short-Run Costs Introduction Long-Run Expansion Path Short-Run Expansion Path Expansion Paths: short and long-run cost curves Comparing Long and Short-Run Costs Economies of Scale Introduction Economies of Scale: definitions The Three Scale Effects Long-Run Average Costs in Practice Economies of Scale and Market Structure Summary Perfect Competition and Monopoly Introduction to Perfect Competition and Monopoly Introduction Markets and Profits Introduction Characteristics of Different Market Structures Profit Maximisation Marginal Cost and Revenue at Profit Maximisation Normal and Supernormal Profit Summary Perfect Competition Introduction Four Key Assumptions in Perfect Competition Firm and Industry Demand in Perfect Competition Demand Curve of a Firm in Perfect Competition Profit Maximisation in Perfect Competition Profit Maximising Output for a Firm in Perfect Competition Fixed and Variable Costs Short Run Supply Summary Comparative Static Analysis of Perfect Competition Introduction Profits and Losses in the Short-run The Comparative Static Effects of Demand Changes A Change in Demand with Diseconomies of Scale Comparative Static Effects of Changing Costs The Effect of a Tariff on Imports Summary Monopoly Introduction Two Key Assumptions in Monopoly Barriers to Entry A Monopolist's Revenue A Monopolist's Demand and Marginal Revenue Profit Maximisation by a Monopolist Profit Maximisation for a Monopolist using MC and MR Monopoly and Supply Demand, Elasticity and Monopoly Price Discrimination Under Monopoly Perfect Competition and Monopoly Compared Main Differences between Perfect Competition and Monopoly Summary Summary of Perfect Competition and Monopoly Summary Imperfect Competition Introduction to Monopolistic Competition and Oligopoly Introduction Monopolistic Competition Introduction Key Assumptions in Monopolistic Competition Short Run Equilibrium of a Monopolistic Firm Adjustment to Long-run Equilibrium Quiz on Monopolistic Competition Summary Oligopoly Introduction The Key Assumptions of Oligopoly Interdependence in Oligopoly Collusive Oligopoly Cartels Cartel Disintegration A Cartel Example - OPEC Collusion in Practice Non Collusive Oligopoly Equilibrium in Non Collusive Oligopoly Models of Non-collusive Oligopoly Assumptions of Cournot's Oligopoly Model Cournot's Model of Duopoly The Kinked Demand Curve Other Explanations for Stable Prices Non - Price Competition Advertising The Economics of Advertising The Advertising Elasticity of Demand Game Theory Prisoners' Dilemma Game: an example A Duopoly Game Based on the Prisoner's Dilemma Nash Equilibria versus Co-operation Reasoning as a Duopolist Followers and Leaders Summary Comparing Monopolistic Competition and Oligopoly Introduction The Case for Imperfect Competition Differences Within Imperfect Competition Summary Summary of Monopolistic Competition and Oligopoly Summary Regulation of Markets and Market Failure Introduction to Regulation of Markets and Market Failure Introduction Requirements for Allocative Efficiency Introduction Allocative Efficiency Marginal Private Cost & Benefit Perfect Competition & Allocative Efficiency The Six Competitive Market Assumptions Summary Market Failure Introduction Reasons for Market Failure Monopoly Power & Allocative Inefficiency Externalities & Allocative Inefficiency Summary Monopoly Power Introduction Price, Output & Profit in Competition & Monopoly Efficiency in Competition & Monopoly Summary Externalities & Social Costs Introduction Production Externalities Consumption Externalities Finding Marginal Social Cost & Benefit What are Social Costs and Externalities? Summary Government Regulation Introduction Demand for Regulation Supply of Regulation Equilibrium Amount of Regulation Examples of Regulation Summary Taxes & Subsidies Introduction Monopoly Policy in a First-Best World Externality Policy in a First-Best World The Second-Best World Advantages/Disadvantages of Taxes & Subsidies Summary Monopoly & Merger Policy Introduction UK regulation of Private Monopolies & Oligopolies UK Merger Policy Regulation due to Membership of the European Union Summary Summary of Regulation of Markets and Market Failure Summary Factors of Production Introduction to Factors of Production Introduction Factor Markets Introduction Factor Markets: an overview Factor Supply: the supply of labour Introduction Supply of Labour: the leisure/work trade-off Supply of Labour: derivation of the budget constraint The Labour Supply Decision The Market Supply of Labour Summary Factor Demand: the demand for labour Introduction Short-Run Demand for Labour: competitive input & output markets Short-Run Demand for Labour Aggregate Demand for Labour Factor Demand by a Firm: under different market structures The Firm's Demand for Factors: possible market combinations Competitive Input Market and Imperfect Output Market Derivation of the Marginal Factor Cost in Imperfect Input Markets Derivation of MRP and VMP in Imperfect Output Markets Imperfect Input and Output Markets Imperfect Input Market and Competitive Output Market Summary Economic Rent and Transfer Earnings Introduction The Market for Skilled Labour - TV weather presenters The Market for Unskilled Labour - bar staff The Market for City Centre Office Space Economic Rent and Transfer Earnings Summary of Economic Rent and Transfer Earnings Discrimination in the Labour Market Introduction The Aggregate Supply Curve faced by a Monopsonist Discriminating and Non-Discriminating Monopsony Compared Summary Labour Markets: Impact of the Minimum Wage Introduction Minimum Wage Summary Capital Investment Appraisal Introduction Net Present Value Evaluate Your Own Project The Meaning of Net Present Value The Cost of Capital: an introduction The Cost of Capital: influences Payback Summary Introductory Mathematics for Economists Introductory Mathematics for Economists Introduction About Introductory Mathematics for Economists The Basics Introduction Variables and Functions Fractions and Sharing Basic Rules of Algebra Coordinates and Graphs Powers and Indices Economic Problems - Basic Mathematics Summary of the Basics Equations Introduction Transposition Linear Equations Quadratic Equations Simultaneous Equations Exponential Functions Logarithmic Functions Economic Problems - Equations Summary of Equations Sequences and Series Introduction Sequences and Series Present Value & Cash Flow Economic Problems - Sequences Summary - Sequence & Series Summary for Introductory Mathematics for Economists Summary Intermediate Mathematics for Economists Intermediate Mathematics for Economists Introduction About Intermediate Mathematics for Economics Differentiation in Economics Introduction Why Economists use Differentiation The Basic Rules of Differentiation Worked Examples A Summary of The Basic Rules of Differentiation Practice Differentiation Example One - Utility Functions Example Two - Revenue Functions Example Three - Cost Functions Maximum & Minimum Values Introduction Identifying Maximum & Minimum Values Checking for Maximum or Minimum Turning points Rules for Finding a Maximum or Minimum What Happens at a Maximum? Example One - Maximum Profit Example Two - Minimum Average Cost Product, Quotient & Chain Rules Introduction The Product Rule The Quotient Rule The Chain Rule Further Rules of Differentiation - A Summary Example One - Marginal Revenue (Product Rule) Partial Differentiation Introduction Marginal Product of Labour and Capital Practice Partial Differentiation Maxima/Minima of Multivariate Functions Introduction Optimisation of Multivariate Functions Maxima/Minima Subject to a Constraint Introduction Constrained Optimisation The Substitution Method The Lagrange Multiplier Method Differentiation of Log/Exponential Functions Introduction Natural Logarithmic & Exponential Functions Rules for Differentiation of Logs/Exponentials Practise Differentiating Logs/Exponentials Summary for Intermediate Mathematics for Economists Summary Probability for Economists Elementary Probability Introduction Sets Probability: Outcomes, Events & Sample Spaces Definition of Probability: The Probability Postulates Probability Calculator Throwing Two Coins: How Many Heads? Summary Elementary Statistics Introduction Grouped Data The Mean The Mode The Median of Raw Ungrouped Data The Median: Grouped Data Mean, Mode, Median and Symmetry Summary Discrete Distributions Introduction DBinomial Distribution Poisson Distribution Summary Continuous Distributions Introduction Normal Distribution Summary Central Limit Theorem Introduction Central Limit Theorem Summary Statistics for Economists Correlation Coefficient Introduction How To Get More Information (in this chapter) Correlation Coefficient Summary Simple Regression Introduction Fitting a Line to the Data Linear Regression (or Fitting a Line to the Data) Linear Regression Summary Multiple Regression Introduction Multiple Linear Regression Multiple Linear Regression Analysis Chi-squared Test for Normality of Residuals F-Test t-test Regression: Analysis of Variance The Analysis of Variance Multiple Regression As A Sequence of Simple Regressions Summary Analysis of Variance Introduction Analysis of Variance Summary Dummy Variables Introduction Dummy Variables Summary Time Series Analysis Introduction Time Series Analysis: Moving Averages Time Series Analysis Summary