This book presents a scientific and systematic development of the under-lying concepts of microeconomics with due emphasis on analytical and mathematical treatment, much needed for an application orientation of mind, to help students in understanding and tackling the real-world problems.
The book is organized into five units. The first unit is devoted to price-output decisions of a monopoly. The unit provides a comprehensive account of these decisions under all their manifestations in a systematic manner with illustrative sketches and mathematical explanations.
The second unit is devoted to imperfect markets. It covers monopolistic competition, duopoly and oligopoly under different situations of product pricing and quantity determination. The analysis, as usual, is systematic incorporating illustrative sketches and mathematical explanations. The unit also covers sales maximization models of Baumol.
The third unit is devoted to factor pricing and the fourth to capital and investment decisions. The former focuses on pricing of variables and fixed factors of production while the latter on inter-temporal analysis and choice under uncertainty.
The fifth unit is devoted to general equilibrium and market failure. It covers topics on general equilibrium and Pareto efficiency, markets with asymmetric information and externalities and public goods.
Over 145 neatly drawn figures to clarify the concepts.
Chapter-end summaries as ‘key terms and concepts’ to facilitate quick revision.
Over 410 chapter-end short and long answer questions of numerical and analytical nature with hints, and answers as appropriate to probe the student’s assimilation of the material covered.
Numerous illustrative examples throughout the text to illustrate the application of concepts.