Microeconomics theory

The experience of using Microeconomic Theory in graduate and advanced undergraduate courses over a number of years, the many helpful suggestions of colleagues and students, and recent developments in economics have all provided incentives for a major revision. The second (enlarged) edition differs from the first in three major respects, There have also been some minor changes in the mathematical tools used in the text.

First, an attempt has been made to include a fair amount of new material that either appeared in the economic literature since the pub lieation of the first edition or was considered too new or difficult for inclusion at the earlier time. Examples are the constant-elasticity-of substitution production function (Chap. 3), a proof for the existence of equilibrium in a competitive economy (Chap. 5), the case of the revenue-maximizing monopolist (Chap. 6), and the theory of second best (Chap. 7). Many other extensions are included in the appropriate chapters.