Glossary of terms

Index

• Copyright
• Introduction
• The theory
• Describing technology: the production function
  • Output as a function of one input, holding other inputs fixed: the total product, marginal product, and average product functions
  • Combinations of inputs that yield the same output: isoquants
  • Changes in output as all inputs change by the same factor: returns to scale
• The theory of a cost-minimizing firm
  • The cost function of a firm with one variable input
    • Variation on a theme: allocating output between two plants
  • The cost function of a firm with two variable inputs
    • Basic theory
    • Comparative statics
    • The cost function and returns to scale
    • Long run and short run cost functions
• The supply function of a profit-maximizing price-taking firm
• Competitive equilibrium in an exchange economy
  • Competitive equilibrium
  • Pareto efficiency
• Competitive equilibrium in an economy with production
  • Short run competitive equilibrium
  • Long run competitive equilibrium
  • Comparative statics in the short run and the long run
• The theory of monopoly
  • The behavior of a profit-maximizing monopolist setting a single price
  • The behavior of a profit-maximizing price-discriminating monopolist
  • When is a monopoly robust to entry?
  • Policies to control a monopoly
• Theories of oligopoly
  • Analytical tool: strategic games
  • Cournot's duopoly model
  • Cournot's oligopoly model and the competitive model
  • Collusion among oligopolists