I.
| Introduction |
II.
| Perfect Competition |
| A. | Demand at the Market and the Firm Levels | B. | Short-Run Output Decisions | | 1. | Maximizing Profits | | 2. | Minimizing Losses | | | 1. | Short-Run Operating Losses | | | 2. | The Decision to Shut Down | | 3. | The Short-Run Firm and Industry Supply Curves | C. | Long-Run Decisions |
|
III. | Monopoly |
| A. | Monopoly Power | B. | Sources of Monopoly Power | | 1. | Economies of Scale | | 2. | Economies of Scope | | 3. | Cost Complementarity | | 4. | Patents and Other Legal Barriers | C. | Maximizing Profits | | 1. | Marginal Revenue | | 2. | The Output Decision | | 3. | The Absence of a Supply Curve | | 4. | Multiplant Decisions | D. | Implications of Entry Barriers |
|
IV. | Monopolistic Competition |
| A. | Conditions for Monopolistic Competition | B. | Profit Maximization | C. | Long-Run Equilibrium | D. | Implications of Product Differentiation |
|
V.
| Optimal Advertising Decisions |
VI.
| Answering the Headline |
VII.
| Summary |
VIII.
| Key Terms and Concepts |
IX.
| Conceptual and Computational Questions |
X.
| Problems and Applications |
XI.
| Case-Based Exercises |
XII.
| Selected Readings |
XIII.
| Appendix: The Calculus of Profit
Maximization |
XIV.
| Appendix: The Algebra of Perfectly
Competitive Supply Functions |
