8/13/2021 Microeconomics - Wikipedia

Microeconomics
Microeconomics is a branch of economics that studies the
behavior of individuals and firms in making decisions regarding the
allocation of scarce resources and the interactions among these
individuals and firms.[1][2][3]

One goal of microeconomics is to analyze the market mechanisms

that establish relative prices among goods and services and allocate
limited resources among alternative uses. Microeconomics shows
conditions under which free markets lead to desirable allocations. It
also analyzes market failure, where markets fail to produce efficient Microeconomics analyzes the
results. market mechanisms that enable
buyers and sellers to establish
While microeconomics focuses on firms and individuals, relative prices among goods and
macroeconomics focuses on the sum total of economic activity, services. Shown is a
marketplace in Delhi.
dealing with the issues of growth, inflation, and unemployment and
with national policies relating to these issues.[2] Microeconomics
also deals with the effects of economic policies (such as changing
taxation levels) on microeconomic behavior and thus on the aforementioned aspects of the
economy.[4] Particularly in the wake of the Lucas critique, much of modern macroeconomic theories
has been built upon microfoundations—i.e. based upon basic assumptions about micro-level behavior.

Contents
Assumptions and definitions
History
Microeconomic theory
Consumer demand theory
Production theory
Cost-of-production theory of value
Opportunity cost
Price Theory
Microeconomic models
Supply and demand
Market structure
Perfect competition
Imperfect competition
Monopolistic competition
Monopoly
Oligopoly
Monopsony
https://en.wikipedia.org/wiki/Microeconomics 1/14
8/13/2021 Microeconomics - Wikipedia

Bilateral monopoly
Oligopsony
Game theory
Economics of information
Applied
See also
References
Further reading
External links

Assumptions and definitions

The word microeconomics derives from the Greek words μικρό (small, minor) and οικονομία
(economy).

Microeconomic theory typically begins with the study of a single rational and utility maximizing
individual. To economists, rationality means an individual possesses stable preferences that are both
complete and transitive.

The technical assumption that preference relations are continuous is needed to ensure the existence
of a utility function. Although microeconomic theory can continue without this assumption, it would
make comparative statics impossible since there is no guarantee that the resulting utility function
would be differentiable.

Microeconomic theory progresses by defining a competitive budget set which is a subset of the
consumption set. It is at this point that economists make the technical assumption that preferences
are locally non-satiated. Without the assumption of LNS (local non-satiation) there is no 100%
guarantee but there would be a rational rise in individual utility. With the necessary tools and
assumptions in place the utility maximization problem (UMP) is developed.

The utility maximization problem is the heart of consumer theory. The utility maximization problem
attempts to explain the action axiom by imposing rationality axioms on consumer preferences and
then mathematically modeling and analyzing the consequences. The utility maximization problem
serves not only as the mathematical foundation of consumer theory but as a metaphysical explanation
of it as well. That is, the utility maximization problem is used by economists to not only explain what
or how individuals make choices but why individuals make choices as well.

The utility maximization problem is a constrained optimization problem in which an individual seeks
to maximize utility subject to a budget constraint. Economists use the extreme value theorem to
guarantee that a solution to the utility maximization problem exists. That is, since the budget
constraint is both bounded and closed, a solution to the utility maximization problem exists.
Economists call the solution to the utility maximization problem a Walrasian demand function or
correspondence.

The utility maximization problem has so far been developed by taking consumer tastes (i.e. consumer
utility) as the primitive. However, an alternative way to develop microeconomic theory is by taking
consumer choice as the primitive. This model of microeconomic theory is referred to as revealed
preference theory.
https://en.wikipedia.org/wiki/Microeconomics 2/14
8/13/2021 Microeconomics - Wikipedia

The theory of supply and demand usually assumes that markets

are perfectly competitive. This implies that there are many buyers
and sellers in the market and none of them have the capacity to
significantly influence prices of goods and services. In many real-
life transactions, the assumption fails because some individual
buyers or sellers have the ability to influence prices. Quite often, a
sophisticated analysis is required to understand the demand-
supply equation of a good model. However, the theory works well
in situations meeting these assumptions.

Mainstream economics does not assume a priori that markets are

preferable to other forms of social organization. In fact, much
analysis is devoted to cases where market failures lead to resource
allocation that is suboptimal and creates deadweight loss. A The supply and demand model
classic example of suboptimal resource allocation is that of a describes how prices vary as a
public good. In such cases, economists may attempt to find result of a balance between product
policies that avoid waste, either directly by government control, availability at each price (supply)
indirectly by regulation that induces market participants to act in and the desires of those with
a manner consistent with optimal welfare, or by creating "missing purchasing power at each price
markets" to enable efficient trading where none had previously (demand). The graph depicts a
right-shift in demand from D1 to D2
existed.
along with the consequent increase
This is studied in the field of collective action and public choice in price and quantity required to
reach a new market-clearing
theory. "Optimal welfare" usually takes on a Paretian norm,
equilibrium point on the supply
which is a mathematical application of the Kaldor–Hicks method.
curve (S).
This can diverge from the Utilitarian goal of maximizing utility
because it does not consider the distribution of goods between
people. Market failure in positive economics (microeconomics) is
limited in implications without mixing the belief of the economist and their theory.

The demand for various commodities by individuals is generally thought of as the outcome of a utility-
maximizing process, with each individual trying to maximize their own utility under a budget
constraint and a given consumption set.

History
Economists commonly consider themselves microeconomists or macroeconomists. The difference
between microeconomics and macroeconomics likely was introduced in 1933 by the Norwegian
economist Ragnar Frisch, the co-recipient of the first Nobel Memorial Prize in Economic Sciences in
1969.[5][6] However, Frisch did not actually use the word "microeconomics", instead drawing
distinctions between "micro-dynamic" and "macro-dynamic" analysis in a way similar to how the
words "microeconomics" and "macroeconomics" are used today.[5][7] The first known use of the term
"microeconomics" in a published article was from Pieter de Wolff in 1941, who broadened the term
"micro-dynamics" into "microeconomics".[6][8]

Microeconomic theory

Consumer demand theory

https://en.wikipedia.org/wiki/Microeconomics 3/14
8/13/2021 Microeconomics - Wikipedia

Consumer demand theory relates preferences for the consumption of both goods and services to the
consumption expenditures; ultimately, this relationship between preferences and consumption
expenditures is used to relate preferences to consumer demand curves. The link between personal
preferences, consumption and the demand curve is one of the most closely studied relations in
economics. It is a way of analyzing how consumers may achieve equilibrium between preferences and
expenditures by maximizing utility subject to consumer budget constraints.

Production theory

Production theory is the study of production, or the economic process of converting inputs into
outputs.[9] Production uses resources to create a good or service that is suitable for use, gift-giving in
a gift economy, or exchange in a market economy. This can include manufacturing, storing, shipping,
and packaging. Some economists define production broadly as all economic activity other than
consumption. They see every commercial activity other than the final purchase as some form of
production.

Cost-of-production theory of value

The cost-of-production theory of value states that the price of an object or condition is determined by
the sum of the cost of the resources that went into making it. The cost can comprise any of the factors
of production (including labor, capital, or land) and taxation. Technology can be viewed either as a
form of fixed capital (e.g. an industrial plant) or circulating capital (e.g. intermediate goods).

In the mathematical model for the cost of production, the short-run total cost is equal to fixed cost
plus total variable cost. The fixed cost refers to the cost that is incurred regardless of how much the
firm produces. The variable cost is a function of the quantity of an object being produced. The cost
function can be used to characterize production through the duality theory in economics, developed
mainly by Ronald Shephard (1953, 1970) and other scholars (Sickles & Zelenyuk, 2019, ch.2).

Opportunity cost

Opportunity cost is closely related to the idea of time constraints. One can do only one thing at a time,
which means that, inevitably, one is always giving up other things. The opportunity cost of any activity
is the value of the next-best alternative thing one may have done instead. Opportunity cost depends
only on the value of the next-best alternative. It doesn't matter whether one has five alternatives or
5,000.

Opportunity costs can tell when not to do something as well as when to do something. For example,
one may like waffles, but like chocolate even more. If someone offers only waffles, one would take it.
But if offered waffles or chocolate, one would take the chocolate. The opportunity cost of eating
waffles is sacrificing the chance to eat chocolate. Because the cost of not eating the chocolate is higher
than the benefits of eating the waffles, it makes no sense to choose waffles. Of course, if one chooses
chocolate, they are still faced with the opportunity cost of giving up having waffles. But one is willing
to do that because the waffle's opportunity cost is lower than the benefits of the chocolate.
Opportunity costs are unavoidable constraints on behaviour because one has to decide what's best
and give up the next-best alternative.

Price Theory
https://en.wikipedia.org/wiki/Microeconomics 4/14
8/13/2021 Microeconomics - Wikipedia

Price theory is a field of economics that uses the supply and demand framework to explain and predict
human behavior. It is associated with the Chicago School of Economics. Price theory studies
competitive equilibrium in markets to yield testable hypotheses that can be rejected.

Price theory is not the same as microeconomics. Strategic behavior, such as the interactions among
sellers in a market where they are few, is a significant part of microeconomics but is not emphasized
in price theory. Price theorists focus on competition believing it to be a reasonable description of most
markets that leaves room to study additional aspects of tastes and technology. As a result, price theory
tends to use less game theory than microeconomics does.

Price theory focuses on how agents respond to prices, but its framework can be applied to a wide
variety of socioeconomic issues that might not seem to involve prices at first glance. Price theorists
have influenced several other fields including developing public choice theory and law and economics.
Price theory has been applied to issues previously thought of as outside the purview of economics
such as criminal justice, marriage, and addiction.

Microeconomic models

Supply and demand

Supply and demand is an economic model of price determination in a perfectly competitive market. It
concludes that in a perfectly competitive market with no externalities, per unit taxes, or price
controls, the unit price for a particular good is the price at which the quantity demanded by
consumers equals the quantity supplied by producers. This price results in a stable economic
equilibrium.

Prices and quantities have been described as the most directly

observable attributes of goods produced and exchanged in a
market economy.[10] The theory of supply and demand is an
organizing principle for explaining how prices coordinate the
amounts produced and consumed. In microeconomics, it applies
to price and output determination for a market with perfect
competition, which includes the condition of no buyers or sellers
large enough to have price-setting power.

For a given market of a commodity, demand is the relation of the

quantity that all buyers would be prepared to purchase at each
unit price of the good. Demand is often represented by a table or
a graph showing price and quantity demanded (as in the figure). The supply and demand model
Demand theory describes individual consumers as rationally describes how prices vary as a
choosing the most preferred quantity of each good, given income, result of a balance between product
prices, tastes, etc. A term for this is "constrained utility availability and demand. The graph
maximization" (with income and wealth as the constraints on depicts an increase (that is, right-
demand). Here, utility refers to the hypothesized relation of each shift) in demand from D1 to D2 along
individual consumer for ranking different commodity bundles as with the consequent increase in
more or less preferred. price and quantity required to reach
a new equilibrium point on the
The law of demand states that, in general, price and quantity supply curve (S).
demanded in a given market are inversely related. That is, the
higher the price of a product, the less of it people would be
https://en.wikipedia.org/wiki/Microeconomics 5/14
8/13/2021 Microeconomics - Wikipedia

prepared to buy (other things unchanged). As the price of a commodity falls, consumers move toward
it from relatively more expensive goods (the substitution effect). In addition, purchasing power from
the price decline increases ability to buy (the income effect). Other factors can change demand; for
example an increase in income will shift the demand curve for a normal good outward relative to the
origin, as in the figure. All determinants are predominantly taken as constant factors of demand and
supply.

Supply is the relation between the price of a good and the quantity available for sale at that price. It
may be represented as a table or graph relating price and quantity supplied. Producers, for example
business firms, are hypothesized to be profit maximizers, meaning that they attempt to produce and
supply the amount of goods that will bring them the highest profit. Supply is typically represented as a
function relating price and quantity, if other factors are unchanged.

That is, the higher the price at which the good can be sold, the more of it producers will supply, as in
the figure. The higher price makes it profitable to increase production. Just as on the demand side,
the position of the supply can shift, say from a change in the price of a productive input or a technical
improvement. The "Law of Supply" states that, in general, a rise in price leads to an expansion in
supply and a fall in price leads to a contraction in supply. Here as well, the determinants of supply,
such as price of substitutes, cost of production, technology applied and various factors of inputs of
production are all taken to be constant for a specific time period of evaluation of supply.

Market equilibrium occurs where quantity supplied equals quantity demanded, the intersection of the
supply and demand curves in the figure above. At a price below equilibrium, there is a shortage of
quantity supplied compared to quantity demanded. This is posited to bid the price up. At a price
above equilibrium, there is a surplus of quantity supplied compared to quantity demanded. This
pushes the price down. The model of supply and demand predicts that for given supply and demand
curves, price and quantity will stabilize at the price that makes quantity supplied equal to quantity
demanded. Similarly, demand-and-supply theory predicts a new price-quantity combination from a
shift in demand (as to the figure), or in supply.

For a given quantity of a consumer good, the point on the demand curve indicates the value, or
marginal utility, to consumers for that unit. It measures what the consumer would be prepared to pay
for that unit.[11] The corresponding point on the supply curve measures marginal cost, the increase in
total cost to the supplier for the corresponding unit of the good. The price in equilibrium is
determined by supply and demand. In a perfectly competitive market, supply and demand equate
marginal cost and marginal utility at equilibrium.[12]

On the supply side of the market, some factors of production are described as (relatively) variable in
the short run, which affects the cost of changing output levels. Their usage rates can be changed
easily, such as electrical power, raw-material inputs, and over-time and temp work. Other inputs are
relatively fixed, such as plant and equipment and key personnel. In the long run, all inputs may be
adjusted by management. These distinctions translate to differences in the elasticity (responsiveness)
of the supply curve in the short and long runs and corresponding differences in the price-quantity
change from a shift on the supply or demand side of the market.

Marginalist theory, such as above, describes the consumers as attempting to reach most-preferred
positions, subject to income and wealth constraints while producers attempt to maximize profits
subject to their own constraints, including demand for goods produced, technology, and the price of
inputs. For the consumer, that point comes where marginal utility of a good, net of price, reaches
zero, leaving no net gain from further consumption increases. Analogously, the producer compares
marginal revenue (identical to price for the perfect competitor) against the marginal cost of a good,
with marginal profit the difference. At the point where marginal profit reaches zero, further increases
https://en.wikipedia.org/wiki/Microeconomics 6/14
8/13/2021 Microeconomics - Wikipedia

in production of the good stop. For movement to market equilibrium and for changes in equilibrium,
price and quantity also change "at the margin": more-or-less of something, rather than necessarily all-
or-nothing.

Other applications of demand and supply include the distribution of income among the factors of
production, including labour and capital, through factor markets. In a competitive labour market for
example the quantity of labour employed and the price of labour (the wage rate) depends on the
demand for labour (from employers for production) and supply of labour (from potential workers).
Labour economics examines the interaction of workers and employers through such markets to
explain patterns and changes of wages and other labour income, labour mobility, and
(un)employment, productivity through human capital, and related public-policy issues.[13]

Demand-and-supply analysis is used to explain the behaviour of perfectly competitive markets, but as
a standard of comparison it can be extended to any type of market. It can also be generalized to
explain variables across the economy, for example, total output (estimated as real GDP) and the
general price level, as studied in macroeconomics.[14] Tracing the qualitative and quantitative effects
of variables that change supply and demand, whether in the short or long run, is a standard exercise
in applied economics. Economic theory may also specify conditions such that supply and demand
through the market is an efficient mechanism for allocating resources.[15]

Market structure
Market structure refers to features of a market, including the number of firms in the market, the
distribution of market shares between them, product uniformity across firms, how easy it is for firms
to enter and exit the market, and forms of competition in the market.[16][17] A market structure can
have several types of interacting market systems. Different forms of markets are a feature of
capitalism and market socialism, with advocates of state socialism often criticizing markets and
aiming to substitute or replace markets with varying degrees of government-directed economic
planning.

Competition acts as a regulatory mechanism for market systems, with government providing
regulations where the market cannot be expected to regulate itself. One example of this is with
regards to building codes, which if absent in a purely competition regulated market system, might
result in several horrific injuries or deaths to be required before companies would begin improving
structural safety, as consumers may at first not be as concerned or aware of safety issues to begin
putting pressure on companies to provide them, and companies would be motivated not to provide
proper safety features due to how it would cut into their profits.

The concept of "market type" is different from the concept of "market structure". Nevertheless, it is
worth noting here that there are a variety of types of markets.

The different market structures produce cost curves[18] based on the type of structure present. The
different curves are developed based on the costs of production, specifically the graph contains
marginal cost, average total cost, average variable cost, average fixed cost, and marginal revenue,
which is sometimes equal to the demand, average revenue, and price in a price-taking firm.

Perfect competition

https://en.wikipedia.org/wiki/Microeconomics 7/14
8/13/2021 Microeconomics - Wikipedia

Perfect competition is a situation in which numerous small firms producing identical products
compete against each other in a given industry. Perfect competition leads to firms producing the
socially optimal output level at the minimum possible cost per unit. Firms in perfect competition are
"price takers" (they do not have enough market power to profitably increase the price of their goods or
services). A good example would be that of digital marketplaces, such as eBay, on which many
different sellers sell similar products to many different buyers. Consumers in a perfect competitive
market have perfect knowledge about the products that are being sold in this market.

Imperfect competition

Imperfect competition is a type of market structure showing some but not all features of competitive
markets.

Monopolistic competition

Monopolistic competition is a situation in which many firms with slightly different products compete.
Production costs are above what may be achieved by perfectly competitive firms, but society benefits
from the product differentiation. Examples of industries with market structures similar to
monopolistic competition include restaurants, cereal, clothing, shoes, and service industries in large
cities.

Monopoly

A monopoly is a market structure in which a market or industry is dominated by a single supplier of a

particular good or service. Because monopolies have no competition, they tend to sell goods and
services at a higher price and produce below the socially optimal output level. However, not all
monopolies are a bad thing, especially in industries where multiple firms would result in more costs
than benefits (i.e. natural monopolies).[19][20]

Natural monopoly: A monopoly in an industry where one producer can produce output at a lower
cost than many small producers.

Oligopoly

An oligopoly is a market structure in which a market or industry is dominated by a small number of

firms (oligopolists). Oligopolies can create the incentive for firms to engage in collusion and form
cartels that reduce competition leading to higher prices for consumers and less overall market
output.[21] Alternatively, oligopolies can be fiercely competitive and engage in flamboyant advertising
campaigns.[22]

Duopoly: A special case of an oligopoly, with only two firms. Game theory can elucidate behavior
in duopolies and oligopolies.[23]

Monopsony

A monopsony is a market where there is only one buyer and many sellers.

https://en.wikipedia.org/wiki/Microeconomics 8/14
8/13/2021 Microeconomics - Wikipedia

Bilateral monopoly

A bilateral monopoly is a market consisting of both a monopoly (a single seller) and a monopsony (a
single buyer).

Oligopsony

An oligopsony is a market where there are a few buyers and many sellers.

Game theory
Game theory is a major method used in mathematical economics and business for modeling
competing behaviors of interacting agents. The term "game" here implies the study of any strategic
interaction between people. Applications include a wide array of economic phenomena and
approaches, such as auctions, bargaining, mergers & acquisitions pricing, fair division, duopolies,
oligopolies, social network formation, agent-based computational economics, general equilibrium,
mechanism design, and voting systems, and across such broad areas as experimental economics,
behavioral economics, information economics, industrial organization, and political economy.

Economics of information
Information economics is a branch of microeconomic theory that studies how information and
information systems affect an economy and economic decisions. Information has special
characteristics. It is easy to create but hard to trust. It is easy to spread but hard to control. It
influences many decisions. These special characteristics (as compared with other types of goods)
complicate many standard economic theories.[24] The economics of information has recently become
of great interest to many - possibly due to the rise of information-based companies inside the
technology industry.[6] From a game theory approach, we can loosen the usual constraints that agents
have complete information to further examine the consequences of having incomplete information.
This gives rise to many results which are applicable to real life situations. For example, if one does
loosen this assumption, then it is possible to scrutinize the actions of agents in situations of
uncertainty. It is also possible to more fully understand the impacts – both positive and negative – of
agents seeking out or acquiring information.[6]

Applied
Applied microeconomics includes a range of specialized areas of study, many of which draw on
methods from other fields.

Economic history examines the evolution of the economy and economic institutions, using
methods and techniques from the fields of economics, history, geography, sociology, psychology,
and political science.
Education economics examines the organization of education provision and its implication for
efficiency and equity, including the effects of education on productivity.
Financial economics examines topics such as the structure of optimal portfolios, the rate of return
to capital, econometric analysis of security returns, and corporate financial behavior.
Health economics examines the organization of health care systems, including the role of the
health care workforce and health insurance programs.
https://en.wikipedia.org/wiki/Microeconomics 9/14
8/13/2021 Microeconomics - Wikipedia

Industrial organization examines topics such as the entry and

exit of firms, innovation, and the role of trademarks. Labor
economics examines wages, employment, and labor market
dynamics.
Law and economics applies microeconomic principles to the
selection and enforcement of competing legal regimes and
their relative efficiencies.
Political economy examines the role of political institutions in
determining policy outcomes. United States Capitol Building:
Public economics examines the design of government tax and meeting place of the United States
expenditure policies and economic effects of these policies Congress, where many tax laws are
(e.g., social insurance programs). passed, which directly impact
Urban economics, which examines the challenges faced by economic welfare. This is studied in
cities, such as sprawl, air and water pollution, traffic the subject of public economics.
congestion, and poverty, draws on the fields of urban
geography and sociology.
Labor economics examines primarily labor markets, but comprises a large range of public policy
issues such as immigration, minimum wages, or inequality.

See also
Economics
Macroeconomics

References
1. Marchant, Mary A.; Snell, William M. "Macroeconomics and International Policy Terms" (http://ww
w.ca.uky.edu/agc/pubs/aec/aec75/aec75.pdf) (PDF). University of Kentucky. Archived (https://we
b.archive.org/web/20070318072324/http://www.ca.uky.edu/agc/pubs/aec/aec75/aec75.pdf) (PDF)
from the original on 2007-03-18. Retrieved 2007-05-04.
2. "Economics Glossary" (http://www.mcwdn.org/ECONOMICS/EcoGlossary.html). Monroe County
Women's Disability Network. Archived (https://web.archive.org/web/20080204220231/http://www.
mcwdn.org/ECONOMICS/EcoGlossary.html) from the original on 2008-02-04. Retrieved
2008-02-22.
3. "Social Studies Standards Glossary" (https://web.archive.org/web/20070808200604/http://nmlites.
org/standards/socialstudies/glossary.html). New Mexico Public Education Department. Archived
from the original (http://nmlites.org/standards/socialstudies/glossary.html) on 2007-08-08.
Retrieved 2008-02-22.
4. "Glossary" (http://www.econ100.com/eu5e/open/glossary.html). ECON100. Archived (https://web.
archive.org/web/20060411174547/http://www.econ100.com/eu5e/open/glossary.html) from the
original on 2006-04-11. Retrieved 2008-02-22.
5. Frisch, R. 1933. Propagation problems and impulse problems in dynamic economics. In Economic
essays in honour of Gustav Cassel, ed. R. Frisch. London: Allen & Unwin.
6. Varian H.R. (1987) Microeconomics. In: Palgrave Macmillan (eds) The New Palgrave Dictionary of
Economics. Palgrave Macmillan, London.
7. Varian, Hal R. (1987). "Microeconomics". The New Palgrave Dictionary of Economics. pp. 1–5.
doi:10.1057/978-1-349-95121-5_1212-1 (https://doi.org/10.1057%2F978-1-349-95121-5_1212-1).
ISBN 978-1-349-95121-5.

https://en.wikipedia.org/wiki/Microeconomics 10/14
8/13/2021 Microeconomics - Wikipedia

8. De Wolff, Pieter (April 1941). "Income Elasticity of Demand, a Micro-Economic and a Macro-
Economic Interpretation". The Economic Journal. 51 (201): 140–145. doi:10.2307/2225666 (http
s://doi.org/10.2307%2F2225666). JSTOR 2225666 (https://www.jstor.org/stable/2225666).
9. Sickles, R., & Zelenyuk, V. (2019). Measurement of Productivity and Efficiency: Theory and
Practice. Cambridge: Cambridge University Press. doi:10.1017/9781139565981 (https://assets.ca
mbridge.org/97811070/36161/frontmatter/9781107036161_frontmatter.pdf)
10. Brody, A. (1987). "Prices and quantities" (http://www.dictionaryofeconomics.com/article?id=pde19
87_X001748). In Eatwell, John; Milgate, Murray; Newman, Peter (eds.). The New Palgrave
Dictionary of Economics. The New Palgrave: A Dictionary of Economics (first ed.). p. 1.
doi:10.1057/9780230226203.3325 (https://doi.org/10.1057%2F9780230226203.3325).
ISBN 9780333786765.
11. Baumol, William J. (28 April 2016). "Utility and Value" (https://www.britannica.com/topic/utility-eco
nomics). Encyclopædia Britannica.
12. Hicks, J.R. (2001) [1939]. Value and Capital: An Inquiry into Some Fundamental Principles of
Economic Theory (second ed.). London: Oxford University Press. ISBN 978-0-19-828269-3.
13. • Freeman, Richard B. (1987). "Labour economics" (http://www.dictionaryofeconomics.com/articl
e?id=pde1987_X001250). In Eatwell, John; Milgate, Murray; Newman, Peter (eds.). The New
Palgrave Dictionary of Economics. The New Palgrave: A Dictionary of Economics (first ed.). p. 1.
doi:10.1057/9780230226203.2907 (https://doi.org/10.1057%2F9780230226203.2907).
ISBN 9780333786765.

   • Taber, Christopher; Weinberg, Bruce A. (2008). "Labour economics (new perspectives)" (http://
www.dictionaryofeconomics.com/article?id=pde2008_L000241). In Durlauf, Steven N.; Blume,
Lawrence E. (eds.). The New Palgrave Dictionary of Economics (second ed.). pp. 787–791.
doi:10.1057/9780230226203.0914 (https://doi.org/10.1057%2F9780230226203.0914). ISBN 978-
0-333-78676-5.
   • Hicks, John R. (1963) [1932]. The Theory of Wages (second ed.). Macmillan.
14. Blanchard, Olivier (2006). "Chapter 7: Putting All Markets Together: The AS–AD Model".
Macroeconomics (4th ed.). Prentice-Hall. ISBN 978-0-1318-6026-1.
15. Jordan, J.S. (October 1982). "The Competitive Allocation Process Is Informationally Efficient
Uniquely" (http://purl.umn.edu/54971). Journal of Economic Theory. 28 (1): 1–18.
doi:10.1016/0022-0531(82)90088-6 (https://doi.org/10.1016%2F0022-0531%2882%2990088-6).
16. McEachern, William A. (2006). Economics: A Contemporary Introduction (https://archive.org/detail
s/economicscontemp0000mcea/page/166). Thomson South-Western. pp. 166 (https://archive.org/
details/economicscontemp0000mcea/page/166). ISBN 978-0-324-28860-5.
17. Hashimzade, Nigar; Myles, Gareth; Black, John (2017). "market structure" (https://www.oxfordrefe
rence.com/view/10.1093/acref/9780198759430.001.0001/acref-9780198759430-e-1937). A
Dictionary of Economics. Oxford University Press. ISBN 978-0-19-875943-0.
18. Emerson, Patrick M. (2019-10-28), "Module 8: Cost Curves" (https://open.oregonstate.education/i
ntermediatemicroeconomics/chapter/module-8/), Intermediate Microeconomics, Oregon State
University, retrieved 2021-05-13
19. "Monopoly - Economics Help" (https://www.economicshelp.org/microessays/markets/monopoly/).
Economics Help. Archived (https://web.archive.org/web/20180314104615/https://www.economics
help.org/microessays/markets/monopoly/) from the original on 2018-03-14. Retrieved 2018-03-14.
20. Krylovskiy, Nikolay. "Natural monopolies" (https://www.economicsonline.co.uk/Business_economic
s/Natural_monopolies.html). Economics Online. Retrieved 2020-09-03.
21. "Competition Counts" (https://web.archive.org/web/20131204132757/http://www.ftc.gov/bc/edu/pu
bs/consumer/general/zgen01.shtm). ftstatus=live. 11 June 2013. Archived from the original (http://
www.ftc.gov/bc/edu/pubs/consumer/general/zgen01.shtm) on 4 December 2013.

https://en.wikipedia.org/wiki/Microeconomics 11/14
8/13/2021 Microeconomics - Wikipedia

22. Gary M. Erickson (2009). “An Oligopoly Model of Dynamic Advertising Competition“. European
Journal of Operational Research 197 (2009): 374-388.
https://econpapers.repec.org/article/eeeejores/v_3a197_3ay_3a2009_3ai_3a1_3ap_3a374-
388.htm
23. "Oligopoly/Duopoly and Game Theory" (http://www.apeconreview.com/oligopoly.html). AP
Microeconomics Review. 2017. Archived (https://web.archive.org/web/20160625002834/http://ww
w.apeconreview.com/oligopoly.html) from the original on 2016-06-25. Retrieved 2017-06-11.
"Game theory is the main way economists [sic] understands the behavior of firms within this
market structure."
24. • Beth Allen, 1990. "Information as an Economic Commodity," American Economic Review, 80(2),
pp. 268 (https://www.jstor.org/pss/2006582)–273.

  • Kenneth J. Arrow, 1999. "Information and the Organization of Industry," ch. 1, in Graciela
Chichilnisky Markets, Information, and Uncertainty. Cambridge University Press, pp. 20–21 (http
s://books.google.com/books?id=m6PLCb18RrsC&pg=PA20&lpg=PA20&dq=false).

   • _____, 1996. "The Economics of Information: An Exposition," Empirica, 23(2), pp. 119 (https://
doi.org/10.1007%2FBF00925335)–128.

   • _____, 1984. Collected Papers of Kenneth J. Arrow, v. 4, The Economics of Information.

Description (http://www.hup.harvard.edu/catalog.php?isbn=9780674137639) Archived (https://we
b.archive.org/web/20120330214121/http://www.hup.harvard.edu/catalog.php?isbn=97806741376
39) 2012-03-30 at the Wayback Machine and chapter-preview links. (https://books.google.com/bo
oks?id=ZYIiFsrT0dcC&printsec=find&pg=PP9=onepage&q&f=false#v=onepage&q&f=false)

   • Jean-Jacques Laffont, 1989. The Economics of Uncertainty and Information, MIT Press.
Description (http://mitpress.mit.edu/catalog/item/default.asp?ttype=2&tid=7640) Archived (https://
web.archive.org/web/20120125171634/http://mitpress.mit.edu/catalog/item/default.asp?ttype=2&ti
d=7640) 2012-01-25 at the Wayback Machine and chapter-preview links (https://books.google.co
m/books/p/harvard?id=7r484x3HVu4C&printsec=find&pg=PR5=#v=onepage&q&f=false).

Further reading
* Bade, Robin; Michael Parkin (2001). Foundations of Microeconomics. Addison Wesley Paperback
1st Edition.
Editors, biography.com (August 17, 2016). "Adam Smith Biography.com". A&E Television
Networks.
Bouman, John: Principles of Microeconomics – free fully comprehensive Principles of
Microeconomics and Macroeconomics texts (http://www.inflateyourmind.com). Columbia,
Maryland, 2011
Colander, David. Microeconomics. McGraw-Hill Paperback, 7th Edition: 2008.
Dunne, Timothy; J. Bradford Jensen; Mark J. Roberts (2009). Producer Dynamics: New Evidence
from Micro Data. University of Chicago Press. ISBN 978-0-226-17256-9.
Eaton, B. Curtis; Eaton, Diane F.; and Douglas W. Allen. Microeconomics. Prentice Hall, 5th
Edition: 2002.
Erickson, Gary M. (2009). “An Oligopoly Model of Dynamic Advertising Competition“. European
Journal of Operational Research 197 (2009): 374-388.
https://econpapers.repec.org/article/eeeejores/v_3a197_3ay_3a2009_3ai_3a1_3ap_3a374-
388.htm
Frank, Robert H.; Microeconomics and Behavior. McGraw-Hill/Irwin, 6th Edition: 2006.
Friedman, Milton. Price Theory. Aldine Transaction: 1976
Hagendorf, Klaus: Labour Values and the Theory of the Firm. Part I: The Competitive Firm. Paris:
EURODOS; 2009. (http://ssrn.com/paper=1489383)

https://en.wikipedia.org/wiki/Microeconomics 12/14
8/13/2021 Microeconomics - Wikipedia

Harnerger, Arnold C. (2008). "Microeconomics" (http://www.econlib.org/library/Enc/Microeconomic

s.html). In David R. Henderson (ed.). Concise Encyclopedia of Economics (2nd ed.). Indianapolis:
Library of Economics and Liberty. ISBN 978-0-86597-665-8. OCLC 237794267 (https://www.world
cat.org/oclc/237794267).
Hicks, John R. Value and Capital. Clarendon Press. [1939] 1946, 2nd ed.
Hirshleifer, Jack., Glazer, Amihai, and Hirshleifer, David, Price theory and applications: Decisions,
markets, and information. Cambridge University Press, 7th Edition: 2005.
Jaffe, Sonia; Minton, Robert; Mulligan, Casey B.; and Murphy, Kevin M.: Chicago Price Theory (htt
ps://home.uchicago.edu/cbm4/cpt/index.html). Princeton University Press, 2019
Jehle, Geoffrey A.; and Philip J. Reny. Advanced Microeconomic Theory. Addison Wesley
Paperback, 2nd Edition: 2000.
Katz, Michael L.; and Harvey S. Rosen. Microeconomics. McGraw-Hill/Irwin, 3rd Edition: 1997.
Kreps, David M. A Course in Microeconomic Theory. Princeton University Press: 1990
Landsburg, Steven. Price Theory and Applications. South-Western College Pub, 5th Edition:
2001.
Mankiw, N. Gregory. Principles of Microeconomics. South-Western Pub, 2nd Edition: 2000.
Mas-Colell, Andreu; Whinston, Michael D.; and Jerry R. Green. Microeconomic Theory. Oxford
University Press, US: 1995.
McGuigan, James R.; Moyer, R. Charles; and Frederick H. Harris. Managerial Economics:
Applications, Strategy and Tactics. South-Western Educational Publishing, 9th Edition: 2001.
Nicholson, Walter. Microeconomic Theory: Basic Principles and Extensions. South-Western
College Pub, 8th Edition: 2001.
Perloff, Jeffrey M. Microeconomics. Pearson – Addison Wesley, 4th Edition: 2007.
Perloff, Jeffrey M. Microeconomics: Theory and Applications with Calculus. Pearson – Addison
Wesley, 1st Edition: 2007
Pindyck, Robert S.; and Daniel L. Rubinfeld. Microeconomics. Prentice Hall, 7th Edition: 2008.
Ruffin, Roy J.; and Paul R. Gregory. Principles of Microeconomics. Addison Wesley, 7th Edition:
2000.
Sickles, R., & Zelenyuk, V. (2019). Measurement of Productivity and Efficiency: Theory and
Practice. Cambridge: Cambridge University Press.
https://assets.cambridge.org/97811070/36161/frontmatter/9781107036161_frontmatter.pdf
Varian, Hal R. (1987). "microeconomics," The New Palgrave: A Dictionary of Economics, v. 3,
pp. 461–63.
Varian, Hal R. Intermediate Microeconomics: A Modern Approach. W. W. Norton & Company, 8th
Edition: 2009.
Varian, Hal R. Microeconomic Analysis. W. W. Norton & Company, 3rd Edition: 1992.

External links
X-Lab: A Collaborative Micro-Economics and Social Sciences Research Laboratory (http://xlab.be
rkeley.edu)
Simulations in Microeconomics (http://www.economicsnetwork.ac.uk/teaching/simulations/principl
esofmicroeconomics.htm)
http://media.lanecc.edu/users/martinezp/201/MicroHistory.html – a brief history of microeconomics

Retrieved from "https://en.wikipedia.org/w/index.php?title=Microeconomics&oldid=1035926589"

https://en.wikipedia.org/wiki/Microeconomics 13/14
8/13/2021 Microeconomics - Wikipedia

This page was last edited on 28 July 2021, at 13:07 (UTC).

Text is available under the Creative Commons Attribution-ShareAlike License;

additional terms may apply. By using this
site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered trademark of the Wikimedia
Foundation, Inc., a non-profit organization.

https://en.wikipedia.org/wiki/Microeconomics 14/14