Includes bibliographical references and index.

Supply, Demand, and Equilibrium -- Prices, Costs, and the Gains from Trade -- The Behavior of Consumers -- Tastes -- The Budget Line and the Consumer's Choice -- Applications of Indifference Curves -- Cardinal Utility -- Consumers in the Marketplace -- Changes in Income -- Changes in Price -- Income and Substitution Effects -- Elasticities -- The Behavior of Firms -- Weighing Costs and Benefits -- Firms in the Marketplace -- Production and Costs -- Production and Costs in the Short Run -- Production and Costs in the Long Run -- Relations Between the Short Run and the Long Run -- Competition -- The Competitive Firm in the Short Run -- The Competitive Industry in the Short Run -- The Competitive Firm in the Long Run -- An Introduction to the Competitive Industry in the Long Run -- Constant-Cost Industries -- Increasing- and Decreasing-Cost Industries -- Applications -- Using the Competitive Model -- Welfare Economics and the Gains from Trade -- Measuring the Gains from Trade -- The Efficiency Criterion -- Examples and Applications -- General Equilibrium and the Invisible Hand -- Normative Criteria -- Knowledge and Information -- The Informational Content of Prices -- Financial Markets -- Topics in the Economics of Information -- Monopoly -- Price and Output under Monopoly -- Sources of Monopoly Power -- Price Discrimination -- Market Power, Collusion, and Oligopoly -- Acquiring Market Power -- Collusion and the Prisoner's Dilemma: An Introduction to Game Theory -- Regulation -- Oligopoly -- Monopolistic Competition and Product Differentiation -- The Theory of Games -- Game Matrices -- Sequential Games -- External Costs and Benefits -- Costs Imposed on Others -- The Coase Theorem -- Transactions Costs -- The Law and Economics -- Common Property and Public Goods -- The Tragedy of the Commons -- Public Goods -- The Demand for Factors of Production -- The Firm's Demand for Factors in the Short Run -- The Firm's Demand for Factors in the Long Run -- The Industry's Demand Curve for Factors of Production -- The Distribution of Income -- The Market for Labor -- Individual Labor Supply -- Labor Market Equilibrium -- Differences in Wages -- Discrimination -- Allocating Goods Over Time -- Bonds and Interest Rates -- Applications -- The Market for Current Consumption -- Production and Investment -- Risk and Uncertainty -- Attitudes Toward Risk -- The Market for Insurance -- Futures Markets -- Markets for Risky Assets -- Rational Expectations -- What is Economics? -- The Nature of Economic Analysis -- The Rationality Assumption -- What is an Economic Explanation? -- The Scope of Economic Analysis -- Calculus Supplement.

Price, Theory and Applications makes intermediate microeconomics fun and intellectually challenging. The writing style provides an exceptionally friendly and application-rich presentation, combined with a rigorous and careful development of microeconomics theory. All of the standard topics of intermediate price theory are included, as well as many innovative topics such as alternative normative criteria, efficient asset markets, contestable markets, antitrust law, human capital, demand for public goods, and more. A unique unifying theme of social welfare is used throughout while the inclusion of higher-level mathematics is limited. The author's heavy use of applications and the emphasis on verbal reasoning minimize the complexity of the material. New concepts are immediately illustrated with entertaining and informative examples, both verbal and numerical such as the demand for murder, the economics of polygamy, and the supply of jokes.