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Microeconomics with Calculus 3rd Edition Textbooks
- 3rd Edition
- Jeffrey M. Perloff
- Pearson Education
For all intermediate Microeconomics courses at the undergraduate or graduate level.
Understand the practical, problem-solving aspects of microeconomic theory.
Microeconomics: Theory and Applications with Calculus uses calculus, algebra, and graphs to present microeconomic theory using actual examples, and then encourages students to apply the theory to analyze real-world problems.
The 3rd Edition has been substantially revised, 80% of the Applications are new or updated, and there are 24 new Solved Problems. Every chapter (after Chapter 1) contains a new feature (the Challenge and the Challenge Solution) and has many new end-of-chapter exercises.
Revised and Updated Chapters and Material
- Consumer Theory. The material on demand functions in Chapters 3 and 4 is reorganized between the chapters. In Chapter 3, the utility section is substantially rewritten and supplemented, particularly the treatment of the marginal rate of substation (MRS), the quasilinear utility function, and constrained consumer choice. The chapter now examines the five most common utility functions in detail, and greatly expands its coverage of corner solutions. In Chapter 4, the section on systems of demand functions and income elasticities are significantly revised, and the treatment of Giffen goods is expanded. Chapter 5 updates the treatments of government policies such as taxes and food stamps. All three chapters have a large number of new end-of-chapter exercises.
- Behavioral Economics. This edition adds new material on behavioral economics, particularly the addition of Section 13.4 on behavioral game theory.
- Pricing. Chapter 12 on pricing and advertising is substantially reorganized and rewritten, with new section heads and modified terminology. It also has new material on mixed bundling and sales.
- Externalities. Chapter 17, Property Rights, Externalities, Rivalry, and Exclusion, is substantially revised and reorganized, with added stress on the role of property rights; a new, simpler treatment of the Coase Theorem; and substantial changes to the sections on the optimal provision of a public good, the benefits versus costs from controlling pollution, and the market for pollution.
Gain hands-on experience
New and Updated Real-World Examples and Applications
This edition includes new and updated examples and applications throughout the text. Overall, these examples and applications use real people, real companies, and real data to illustrate basic microeconomic theory, providing students with a practical perspective that showcases the versatility of modern microeconomics.
See how it works
The Solved Problems found within this text provide students with a step-by-step model for working out qualitative and quantitative problems using algebra and calculus. Students get the opportunity to practice the method modeled in a series of related exercises at the end of the chapter.
Make it click
Much of microeconomic theory is based on maximizing behavior. And since calculus is particularly helpful in solving maximization problems, this text combines calculus, algebra, graphs, and verbal descriptions to make the theory as clear as possible for students.
This text goes beyond basic microeconomic theory and looks at theories and applications from many important contemporary fields of economics. Examples include:
- Extensive coverage of problems from resource economics, labor economics, international trade, public finance, and industrial organization is featured throughout.
- This text introduces game theory in Chapter 13, analyzing both static games (including prisoners’ dilemma, chicken, and other games) and multiperiod games (such as collusion and preventing entry), and special attention is paid to auction strategies.
- Chapters 14, 16, 17, 18, and 19 employ game theory to analyze oligopoly behavior, investing given an uncertain future, pollution (the Coase Theorem), and other topics.
Offer a dose of the real-world
Integrated Real-World Examples
This text uses real-world examples throughout the narrative to illustrate the many basic theories of microeconomics. Examples include:
- Monopoly theory applied to a patented pharmaceutical, Botox.
- Oligopoly theories are used to analyze the rivalry between Coke and Pepsi, and between United Airlines and American Airlines on the Chicago—Los Angeles route.
- Apple’s monopoly pricing of iPads is analyzed.
- Multimarket price discrimination through the use of data on how Warner Brothers sets prices for Harry Potter and the Deathly Hallows Part 2 DVD across countries.
Challenges: New Challenges combine an Application and a Solved Problem. Each chapter (other than Chapter 1) begins with a Challenge, which discusses a real-world issue and concludes with one or more questions based on that discussion. At the end of the chapter, a Challenge Solution answers these questions. The purpose of each of these Challenges is to signal to students that the material in that chapter is useful in analyzing real-world problems.
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