IMS Content
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<langstring xml:lang="enUS">WinEcon  Introduction to Microeconomics</langstring>
A fullyinteractive 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  Nonlinear 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

NonStandard 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

ShortRun Production

Introduction

Production and Factor Inputs

The ShortRun Production Function

Diminishing Returns in Production

The Law of Variable Proportions

Modern Production Methods

Modern Production Methods: an example

ShortRun 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 LongRun 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

ShortRun Costs

Introduction

ShortRun Costs and Labour Productivity

ShortRun Cost Definition

Drawing ShortRun Cost Curves

Positioning ShortRun Cost Curves

Deriving the ShortRun 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 ShortRun MC and AC Curves: a numerical example

Mathematics of Marginal Cost

Deriving ShortRun Total Cost Curves

Summary of ShortRun 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 ShortRun Costs

Introduction

LongRun Expansion Path

ShortRun Expansion Path

Expansion Paths: short and longrun cost curves

Comparing Long and ShortRun Costs

Economies of Scale

Introduction

Economies of Scale: definitions

The Three Scale Effects

LongRun 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 Shortrun

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 Longrun 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 Noncollusive 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 Cooperation

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 FirstBest World

Externality Policy in a FirstBest World

The SecondBest 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 tradeoff

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

ShortRun Demand for Labour: competitive input & output markets

ShortRun 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 NonDiscriminating 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

Chisquared Test for Normality of Residuals

FTest

ttest

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