An Introduction to the Economic Theory of Market Behavior : Microeconomics from a Walrasian Perspective

Preface xi Preface to Walrasian Microeconomics xv Introduction 1(34) A description of the Economy 2(5) Theoretical Analysis 7(7) The Approach 14(8) Plan of the Book 22(5) Elasticity 27(8) The Theory of Demand: Utility Maximization 35(50) Preferences and Utility 38(9) Ordinal Utility, Cardinal Utility, and Interpersonal Comparisons 47(6) The Classical Model of Utility Maximization 53(12) Differential Properties of Demand 65(20) Topics in Demand Theory 85(36) Integrability 86(6) Revealed Preferences 92(10) Factor Supplies 102(4) Individual Welfare 106(15) Production and Cost 121(60) Production Functions 123(8) Returns to Scale 131(19) The Elasticity of Substitution 150(6) Cost Minimization 156(8) Cost Functions 164(17) Models of the Firm 181(44) The Short Run 184(21) The Long Run 205(20) Markets in Isolation 225(24) The Short-Run Perfectly Competitive Market 228(5) Perfectly Competitive Markets in the Long Run 233(4) Taxation 237(12) Interacting Markets 249(28) Simple Exchange 252(8) The General Production Economy 260(8) Circulating Money 268(9) The Fixed-Factor-Supply Economy 277(48) The Transformation Surface 280(12) Output Supply and Factor Demand 292(12) The Community Utility Function 304(7) Equilibrium 311(14) Dynamics and Equilibrium 325(50) Dynamic Economic Systems 327(11) Existence of Equilibrium Paths 338(13) Stability of Equilibrium Paths 351(14) Uniqueness of Equilibrium Paths 365(10) Methodological Individualism and the Theory of Price Determination 375(38) Methodological Individualism 378(5) The Walrasian System 383(15) The Determination of Price 398(15) Imperfect competition 413(46) The Setting 418(12) Monopoly 430(14) Other Forms of Imperfect Competition 444(15) Economic Welfare 459(60) Welfare Functions 461(7) The Pareto Ordering 468(19) Equilibrium, Optimality, and Welfare Maximization 487(13) The Measurement of Welfare 500(19) Capital 519(40) Investments and Returns 523(4) Money Capital Requirements 527(16) Firm Behavior 543(16) The Grand View 559(28) Without Capital 559(8) Government and the Economy 567(6) With Capital 573(14) Some Alternative Assumptions and Methods of Analysis 587(24) Methods of Analysis 589(6) Assumptions 595(10) Conclusion 605(6) Appendices 611(72) A. Mathematical Notes 611(24) A.1 Sets 611(3) A.2 Relations 614(2) A.3 Functions 616(15) A.4 Systems of Equations 631(4) A.5 Differential Equations 635(6) B. Hints, Partial Answers, and Answers for Selected Exercises 641(42) Index 683