Titlebook: Microeconomic Theory and Computation; Applying the Maxima Michael R. Hammock,J. Wilson Mixon Book 2013 Springer Science+Business Media New

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Production Theory, use to illustrate production theory. The third section looks at a specific aspect of that theory, returns to scale. In this section the inputs are used in a fixed proportion, so that the output can be phrased in terms of the employment of a single input. The fourth section shows aspects of producti

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Cost Theory, and production cost. The illustration is based on the production function and the assumption that each of the two inputs can be purchased in competitive resource markets. Also, the firm is assumed to employ resources in a cost-minimizing combination.

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Long-Run Supply,cal firms whose cost curves are not affected by the number of firms. Next it allows for these identical firms’ costs to be influenced by the number of firms. Then it analyzes the case in which each firm has unique cost curves. Finally, it addresses the implication of allocative efficiency.

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Nonlinear Pricing: Capturing Consumer Surplus,ust sell all units of its product for the same price and that the per-unit price is the only charge that the seller can impose on the product’s buyers. This pricing regime is often called .. This chapter analyzes deviations from linear pricing, which potentially increase the seller’s profit.