Dominick Salvatore

Microeconomics: Theory and Applications
3rd edition, ISBN 0-673-99993-9

Brief Contents

        List of Examples
        Preface
        About the Author

Part One: Introduction to Microeconomics
                Ch. 1.  Introduction
                Ch. 2.  Basic Demand and Supply Analysis

Part Two: Theory of Consumer Behavior And Demand
                Ch. 3.  Consumer Preferences and Choice
                Ch. 4.  Consumer Behavior and Individual Demand
                Ch. 5.  Market Demand and Elasticities

Part Three: Production, Costs, And Competitive Markets
                Ch. 6.  Production Theory
                Ch. 7.  Costs of Production
                Ch. 8.  Price and Output Under Perfect Competition

Part Four: Imperfectly Competitive Markets
                Ch.  9.  Price and Output Under Pure Monopoly
                Ch. 10.  Price and Output Under Monopolistic Competition and Oligopoly
                Ch. 11.  Game Theory and Oligopolistic Behavior
                Ch. 12.  Market Structure, Efficiency, and Regulation

Part Five:  Pricing And Employment Of Inputs
                Ch. 13.  Input Price and Employment Under Perfect Competition
                Ch. 14.  Input Price and Employment Under Imperfect Competition
                Ch. 15.  Financial Microeconomics:  Interest, Investment, and the Cost of Capital

Part Six:  General Equilibrium, Efficiency, And Public Goods
                Ch. 16.  General Equilibrium and Welfare Economics
                Ch. 17.  Externalities, Public Goods, and the Role of Government
                Ch. 18.  The Economics of Information

Appendices
                Appendix A:  Mathematical Appendix
                Appendix B:  Answers to Selected Problems
                Appendix C:  Glossary

Subject Index
Name Index
 

I had three principal aims in writing this text: to present a judicious blend of the standard topics of traditional microeconomic theory and the many exciting recent developments in the field; to bring important but neglected international aspects into the course; and to devise a number of fresh, realistic, and truly useful examples that could vividly demonstrate modern microeconomic theory at work.

 This is a text for modern undergraduate courses in intermediate microeconomics in economics and business programs. A prior course in principles of economics is required, and only simple geometry is used. There is an optional mathematical appendix at the end of the text for students who have had calculus.

The Modern Approach to Microeconomics

A unique feature of this text is that it presents not only the standard topics of traditional microeconomic theory but also the many exciting recent developments in the field. Most other texts stress the traditional at the expense of the new and exciting, or the new at the expense of the traditional. The former texts make the study of microeconomics seem dull, while the latter, in their attempt to be new and trendy, throw away too much of what is traditional and useful. This text seeks to combine all the useful, traditional topics with the most exciting recent developments in the field. Some of the exciting new theoretical developments covered in this text are the learning curve, new pricing practices, contestable markets, experimental economics, advances in game theory, financial microeconomics, the theory of public choice, industrial policies and firm competitiveness, the economics of information, and the efficiency wage theory.
 New to the third edition is a section in each chapter called At the Frontier, which presents very recent and exciting applications or more advanced theoretical developments in microeconomics. Examples of these applications include Nonclearing Market Theory; Interactive Home TV Shopping; The New International Economies of Scale; The New Computer-Aided Production Revolution; The Art of Devising Air Fares; Auctioning Airwaves; Window 95; Virtual Corporation; Derivatives; and the Internet.

Another unique feature of this text is the introduction of an international dimension into microeconomics to reflect the globalization of production and distribution in today's world. Other microeconomics texts approach microeconomics as if the international economy did not exist. However, many of the commodities we consume are imported, and firms today purchase many inputs abroad and sell an increasing share of their outputs overseas. Even more importantly, domestic firms face more and more competition from foreign producers. Nome of these issues are reflected in current microeconomic texts, and I feel it is time to rectify such deficiencies by incorporating international ramifications throughout the intermediate course.
 Modern microeconomics should deal with topics such as the effect of imports on domestic prices, the international convergence of tastes, technological progress and international competitiveness, minimizing costs internationally, the new economies of scale, dumping, immigration and domestic wages, and domestic production and strategic trade policies. This text allows the instructor to incorporate these important subjects and others into the intermediate course.

Putting the Theory to Work

To introduce more current realism than most other microeconomics texts offer, this text includes five to eight truly relevant and modern examples in each chapter. These examples (132 in all) show how theory can be used to analyze and yield possible solutions to important present-day economics problems. My intent is to demonstrate that only by putting theory to work does theory truly come alive. Examples deepen understanding of the theory and enhance motivation by displaying the usefulness of theory in specific modern contexts.
 Some of the exciting new examples include Gillette Introduces the Sensor Razor - A truly Global Product; America's Gambling Craze; What Is an "American" Car?; General Motors Decides Smaller Is better; How Xerox Lost and Regained International Competitiveness; How Do Firms Get New Technology?; The Market-Sharing Ivy Cartel; Wal-Mart's Preemptive Marketing Strategy; Does Welfare Pay Better Than Work? and The Market for Dumping Rights

University Home Page

Top of Page | Academic Programs + Departments | Admissions | Search | Feedback | Libraries + Information Technology | Alumni | Ramscape | What's New | Research | Financial Aid | Home Page |

FORDHAM