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Principles of Microeconomics has grown out of over 30 years of the author’ lectures. This text emphasizes three core economic principles. First, it defines the concept of rational economic behavior in terms of marginal costs and benefits of decisions. This gives students a simple yet powerful framework to analyze every microeconomic issue subsequently encountered. Second, the goal of allocative efficiency is defined, allowing students to identify economic outcomes that deviate from that goal and the reasons for such deviations in terms of the conflicts between private incentives of individuals and public interests. Third, the book applies the principle of rational economic behavior to analyze the conditions under which the government’s economic policy is justified should the outcomes of economic decisions in the economy result in allocative inefficiency.
The author has more than thirty years of experience teaching economics at both undergraduate and graduate levels at University of California, Davis and other universities. His research interests include international macroeconomics and financial markets. His work has been published widely in the peer review literature including in The Journal of Econometrics, Journal of International Economics, Journal of Futures Markets, Energy Economics, European Economic Review, and Canadian Journal of Economics. He has also acted as a referee for the Canadian Journal of Economics, European Economic Review, and Energy Economics. The author has a master’s degree in quantitative economics from the University of East Anglia, U.K., and a Ph.D. in economics from the University of California, Davis. He is the recipient of Regents Fellowship Based on Distinguished Scholarship, University of California, Davis, 1981-1982.
Chapter 1: What Do Economists Do?
Chapter 2: Rational Economic Behavior
Chapter 3: Economic Efficiency
Chapter 4: Consumer Behavior
Chapter 5: Production Costs
Chapter 6: Producer Behavior under Perfect Competition
Chapter 7: Supply and Demand
Chapter 8: Efficiency of Perfect Competition
Chapter 9: Elasticity
Chapter 10: Government in the Marketplace
Chapter 11: Market Power: Monopoly
Chapter 12: Market Power: Monopolistic Competition and Oligopoly
Chapter 13: Externalities
Chapter 14: Public Goods
Chapter 15: Asymmetric Information
Chapter 16: The Labor Market
Chapter 17: Demand for Capital
Chapter 18: International Trade
Chapter 19: Interest Rate Determination
Chapter 20: Comparative Advantage and International Trade
Bagher Modjtahedi
Bagher Modjtahedi has more than thirty years of experience teaching economics at both undergraduate and graduate levels at University of California, Davis and other universities. His research interests include international macroeconomics and financial markets. His work has been published in the peer review literature including in The Journal of Econometrics, Journal of International Economics, Journal of Futures Markets, Energy Economics, European Economic Review, and Canadian Journal of Economics. He has also acted as a referee for the Canadian Journal of Economics, European Economic Review, and Energy Economics. The author has a master’s degree in quantitative economics from the University of East Anglia, U.K., and a Ph.D. in economics from the University of California, Davis. He is the recipient of Regents Fellowship Based on Distinguished Scholarship, University of California, Davis, 1981-1982.
