Professional Documents
Culture Documents
(Download PDF) Essentials of Microeconomics 2Nd Edition Nguyen Online Ebook All Chapter PDF
(Download PDF) Essentials of Microeconomics 2Nd Edition Nguyen Online Ebook All Chapter PDF
Edition Nguyen
Visit to download the full and correct content document:
https://textbookfull.com/product/essentials-of-microeconomics-2nd-edition-nguyen/
More products digital (pdf, epub, mobi) instant
download maybe you interests ...
https://textbookfull.com/product/essentials-of-
microeconomics-2nd-edition-bonnie-nguyen-andrew-wait/
Microeconomics
https://textbookfull.com/product/microeconomics/
https://textbookfull.com/product/essentials-of-chemical-reaction-
engineering-2nd-2nd-edition-h-scott-fogler/
https://textbookfull.com/product/linux-essentials-2nd-edition-
bresnahan/
Essentials of Anatomy & Physiology, 2nd Edition Kenneth
S. Saladin
https://textbookfull.com/product/essentials-of-anatomy-
physiology-2nd-edition-kenneth-s-saladin/
https://textbookfull.com/product/principles-of-microeconomics-
robert-h-frank/
https://textbookfull.com/product/principles-of-microeconomics-n-
gregory-mankiw/
https://textbookfull.com/product/microeconomics-david-colander/
https://textbookfull.com/product/principles-of-
microeconomics-13th-edition-karl-e-case/
Essentials of
Microeconomics
Second Edition
List of illustrations xi
5 Bargaining 39
5.1 Introduction 39
5.2 Bargaining and surplus 39
5.3 Take-it-or-leave-it negotiations 40
5.4 Multiple-offer bargaining 42
5.5 Some caveats 43
5.6 Concluding comments 44
6 Demand 49
6.1 Introduction 49
6.2 Benefit and willingness to pay 49
6.3 Individual demand 50
6.4 Market demand 52
6.5 Concluding comments 53
7 Production and costs 55
7.1 Introduction 55
7.2 The short run and long run 55
7.3 Production 56
7.4 Short-run costs 59
7.5 Long-run costs 62
7.6 Total revenue, total cost and economic profit 63
7.7 Concluding comments 64
8 Supply 67
8.1 Introduction 67
8.2 Firm supply 67
8.3 Market supply 69
8.4 Concluding comments 70
9 Equilibrium and welfare 71
9.1 Introduction 71
9.2 Market equilibrium 71
9.3 Comparative static analysis 72
9.4 Welfare 74
9.5 Pareto efficiency 78
9.6 Concluding comments 79
10 Elasticity 81
10.1 Introduction 81
10.2 Measuring elasticity 81
Contents vii
10.3 Applications 83
10.4 Concluding comments 89
11 Introduction to markets 93
11.1 Introduction to the four types of markets 93
12 Perfect competition 95
12.1 Introduction 95
12.2 Characteristics of perfect competition 95
12.3 Supply in the short run 96
12.4 Supply in the long run 99
12.5 Market supply in the long run 102
12.6 Concluding comments 105
13 Monopoly 107
13.1 Introduction 107
13.2 Characteristics of a monopoly 107
13.3 The single-price monopolist 108
13.4 Welfare under the single-price monopolist 111
13.5 Price discrimination 114
13.6 Natural monopoly 120
13.7 Regulating a natural monopoly 121
13.8 Concluding comments 123
14 Monopolistic competition 125
14.1 Introduction 125
14.2 Characteristics of monopolistic competition 125
14.3 The short run 126
14.4 The long run 127
14.5 Welfare under monopolistic competition 129
14.6 Concluding comments 129
15 Oligopoly 131
15.1 Introduction 131
15.2 Characteristics of an oligopoly 132
15.3 Simultaneous-move games 132
15.4 Product choice: an application of a coordination game 135
15.5 Sequential games 137
15.6 Concluding comments 142
viii 0 Contents
Index 253
Illustrations
Figures
3.1 The normal form of a game 17
3.2 A game with a dominant strategy equilibrium 17
3.3 A game with two Nash equilibria 18
3.4 The prisoner’s dilemma 20
3.5 The coordination game 21
3.6 Battle of the sexes 22
3.7 Stag hunt 22
3.8 Extensive form of a game 23
3.9 The normal form of the game depicted in Figure 3.8 23
3.10 Extensive form of a game in which Jay and Daisy organise a date 25
4.1 The production possibility frontier (PPF) traces out combinations
of the quantity of two goods (X and Y) that can be produced if all
resources are used 31
4.2 A production possibility frontier for goods X and Y. If there is a shock
that boosts the production of both goods, the PPF will shift outwards
from origin along both axes 32
4.3 A production possibility frontier for goods X and Y. If there is a shock
that boosts the production of X only, the PPF will shift outwards from
origin along the x-axis only 32
4.4 A production possibility frontier for goods X and Y. A one-unit
increase in the production of X is less costly when the output of X is
low (e.g. from A to A′ ) than when the output of X is high (e.g. from B
to B′ ) 33
4.5 Michelle and Rodney’s PPFs. When Michelle and Rodney cannot
trade, their consumption points are given by the point A. When
Michelle and Rodney can trade with each other, their consumption
points are given by the point B. Note that point B lies outside each
person’s individual PPF 36
5.1 Negotiation in which A makes a single offer of p 40
5.2 Negotiation in which B makes a single offer of p 41
5.3 Negotiation in which A makes an offer of p1 and B makes a
counter-offer of p2 42
6.1 A typical marginal benefit curve 50
xii 0 Illustrations
12.4 The long-run supply curve of a firm is traced out by the part of the
MC curve that lies above ATC. In this diagram, it is denoted by the
black dashed line 100
12.5 When the market price is above average total cost, firms in the market
are making profits. This will encourage entry into the market, shifting
the supply curve right from S to S′ . In turn, this will put downward
pressure on market prices 101
12.6 When the market price is below average total cost, firms in the market
are making losses. This will encourage exit from the market, shifting
the supply curve left from S to S′ . In turn, this will put upward pressure
on market prices 101
12.7 In the long run, there are zero profits in a perfectly competitive market.
This requires P = ATC min . Because there are zero profits, there is no
incentive for any firm in the market to exit the market and there is no
incentive for any additional firms to enter the market. In this diagram,
the long-run equilibrium price is P* , the quantity traded in the market
is Q* and the output of the firm is q* 101
12.8 In the long run, free entry and exit means that the price in a
constant-cost industry will always be driven back to ATCmin . The
long-run market supply curve LRS is perfectly elastic at P = ATCmin 102
12.9 Following an unanticipated increase in demand, in the short run
price rises and firms in the industry make positive economic profits.
However, in the long run, entry forces prices back down to the
P* = ATCmin . Each firm sells q* units and economic profits are zero 103
12.10 In an increasing-cost industry, the long-run industry supply curve is
upward sloping 104
12.11 In a decreasing-cost industry, the long-run industry supply curve is
downward sloping 105
13.1 When the demand curve is linear, the marginal revenue curve has the
same vertical intercept and twice the slope of the demand curve 109
13.2 A profit-maximising monopolist sets MR = MC, and thus produces
quantity Qm . At this quantity, the market price will be Pm 110
13.3 The monopolist’s profit is given by π = Q(P − ATC ). The area
corresponding to the monopolist’s profit is shaded grey in this diagram 111
13.4 The quantity traded in the market is lower under monopolist than in a
competitive market 112
13.5 Consumer surplus and producer surplus under a monopoly 112
13.6 Total surplus and deadweight loss under a monopoly 113
13.7 When the monopolist engages in first-degree price discrimination, the
efficient quantity is traded in the market. However, all surplus in the
market is producer surplus 115
13.8 When the monopolist uses a two-part tariff, it charges a fixed fee (F)
equal to the size of the lighter grey-shaded triangle. It then charges a
per-unit fee (p) for each unit consumed equal to MC. The total revenue
from the per-unit fee is represented by the darker grey-shaded area.
The total revenue of the monopolist overall is represented by all of the
shaded areas 116
Illustrations xv
16.8 A tax on producers creates a new market price and quantity at (Qt , Pt ).
However, the net amount received by producers is Pt − t 151
16.9 The welfare effects of a tax 152
16.10 A tax on consumers in the market for tomatoes. The legal incidence
of the tax is borne by consumers, but the economic incidence of the
tax is shared. The price that consumers pay increases from P* to Pt + t,
whereas producers receive Pt following the introduction of the tax,
rather than P* 153
16.11 If demand is perfectly inelastic, when a tax of t per unit is instituted,
consumers pay for all of the tax; following the introduction of the tax
consumers pay P* + t whereas suppliers continue to receive P* 154
16.12 When a tax of t per unit is implemented and supply is perfectly elastic,
consumers pay for all of the tax; following the introduction of the tax,
consumers pay P* + t whereas suppliers continue to receive P* 155
16.13 The deadweight loss generated by a tax depends on the elasticity
of supply and demand. In each panel the demand curve and the tax
implemented are the same. There is a larger DWL generated in the
market with relative elastic supply (the left-hand panel) as compared
with the DWL in the market in which supply is relatively inelastic (the
right-hand panel) 156
16.14 A subsidy for consumption creates a new market price and quantity at
(Qs , Ps ). The total amount paid by consumers is Ps − s 157
16.15 A subsidy for production creates a new market price and quantity at
(Qs , Ps ). The total amount received by producers is Ps + s 158
16.16 Consumer surplus and producer surplus as a result of a subsidy 159
16.17 Government revenue and deadweight loss as a result of a subsidy 159
17.1 The relationship between MPB and MSB in the presence of a positive
externality 162
17.2 The relationship between MPC and MSC in the presence of a negative
externality 163
17.3 The market equilibrium and the socially optimal outcome in the
presence of a positive externality. The area representing deadweight
loss is shaded in grey 165
17.4 The market equilibrium and the socially optimal outcome in the
presence of a negative externality. The area representing deadweight
loss is shaded in grey 165
17.5 The market equilibrium and the socially optimal outcome in the
presence of a negative consumption externality. The area representing
deadweight loss is shaded in grey 166
17.6 The market equilibrium and the socially optimal outcome in the
presence of a positive production externality. The area representing
deadweight loss is shaded in grey 167
17.7 A subsidy granted to the consumer and to the producer, used to address
a positive externality 170
17.8 A tax imposed on the consumer and on the producer, used to address a
negative externality 171
10 2 Key concepts and tools
When graphing this equation, we might want to know where the line intersects the
axes. Along the y-axis, x takes the value of zero, so we can solve for the y-intercept
by setting x = 0 (in equation 2.1, the y-intercept is y = c). Similarly, y takes the value
of zero along the x-axis, so setting y = 0 yields the x-intercept (in equation 2.1, the
x-intercept is x = − mc ).
Example. Suppose a line passes through (4, 3) and (5, 1). Applying equation 2.2,
we can find the slope, m = 34−
−5
1
= −2. Recall that the general equation of a straight
line is y = mx + c. Substituting in m = −2 and (4, 3) yields 3 = −2 × 4 + c, so
c = 11. Therefore, the equation of the line is y = −2x + 11.
Another random document with
no related content on Scribd:
Otoconcha is peculiar. The fresh-water Mollusca, besides the Isidora
characteristic of the sub-region, are partly related to New Caledonia
through the occurrence of Melanopsis, partly to Tasmania through
Potamopyrgus, while the peculiar Latia is possibly akin to
Gundlachia (Tasmania). The land operculates number only 5 genera
and 14 species in all, excluding a doubtful Diplommatina.[374]
Land and Fresh-water Mollusca of the Neozealanian Province
Schizoglossa 1
Paryphanta 5
Rhytida 6
Rhenea 2
Helicarion 1
Otoconcha 1
Microcystis 1
Trochonanina 1
Phacussa 3
Thalassohelix 5
Gerontia 2
Allodiscus 10
Pyrrha 1
Therasia 7
Phenacohelix 3
Suteria 1
Flammulina 13
Laoma 23
Endodonta 10
Charopa 28
Placostylus 1
Carthaea 1
Tornatellina 1
Janella 3
Latia 2
Ancylus 2
Limnaea 5
Amphipeplea 2
Planorbis 1
Isidora 7
Melanopsis 2
Potamopyrgus 4
Paxillus 1
Lagochilus 7
Omphalotropis 1
Realia 4
Hydrocena 1
Unio 9
Sphaerium 1
Pisidium 2
Lord Howe’s I. is remarkable as containing a Placostylus, which
thus links the island with this province. The remainder of the fauna is
Polynesian, with the exception of a species (common to the Fijis) of
Parmella, a slug akin to Helicarion, Parmacochlea, and Cystopelta.
(3) The Polynesian Sub-region includes all the island groups of
the central and southern Pacific (except those classified in the
Papuan and Australian sub-regions), from the Pelews and Carolines
in the west to the Marquesas and Paumotus in the east, and from
the Tonga group in the south to the Sandwich Is. in the north. It may
be subdivided into (a) the Polynesian province proper, and (b) the
Hawaiian province, which includes the Sandwich Is. only.
Fig. 216.—Characteristic
Polynesian Mollusca: A,
Achatinella vulpina Fér.,
Sandwich Is.; B, Partula
planilabrum Pease, Society
Is.
(a) The general features of the Polynesian province are very
similar throughout, although the Mollusca of each island group are in
the main peculiar. The species are mostly small and obscure. Helix
scarcely occurs, its place being taken by small Zonitidae
(Microcystis, Charopa, Trochomorpha, etc.), and by groups of so-
called Patula (Endodonta, Pitys, etc.), the exact position of which is
not yet settled. Libera, remarkable for its method of ovipositing (p.
128), is peculiar to the Society and Hervey Is.; Partula is almost
universal, attaining its maximum (40 sp.) in the Society Is.;
Tornatellina, Pupa, and Vertigo occur throughout.
The land operculates consist chiefly of Omphalotropis, Pupina,
Realia, and Helicina. Diplommatina and Palaina are abundant on the
Pelews, and a Moussonia occurs in the Samoa Is. Ostodes, a small
form of Cyclophorus, is found in some of the southern groups. The
fresh-water operculates are Melania, Neritina (including Clithon, a
sub-genus furnished with spines), and Navicella; there are no
Unionidae, while fresh-water Pulmonata are very scarce.
(b) The land Mollusca of the Hawaiian province are distinguished
by the possession of four entirely peculiar genera—Achatinella,
Leptachatina, Carelia, and Auriculella. More than 300 of the two
former genera have been described, every mountain valley of some
of the islands having its own peculiar species. The destruction of the
indigenous herbage by goats is rapidly extinguishing many forms.
Partula, and the small land operculates, so characteristic of the other
groups, are, with the exception of Helicina, entirely wanting. The
occurrence of one of the Merope group of Helix (Solomon Is.) is
remarkable, and there is a rich development of Succinea. “Patula,”
Microcystis, Tornatellina, and the other small Polynesian land
Pulmonata are well represented. The presence of Isidora, absent
from the central Pacific groups, is remarkable, and Erinna is a
peculiar genus belonging to the Limnaeidae.
CHAPTER XI
GEOGRAPHICAL DISTRIBUTION OF LAND MOLLUSCA (continued)—THE
ETHIOPIAN, NEARCTIC, AND NEOTROPICAL REGIONS
Fig. 220.—Mollusca
characteristic of L.
Tanganyika: A, Nassopsis
nassa Woodw.; B, Spekia
zonata Woodw.; C,
Syrnolopsis lacustris E. A.
Smith.
Fig. 221.—Achatina zebra
Lam., S. Africa. × ½.
(2) The South African Sub-region.—The principal characteristic
of the Mollusca of S. Africa is the occurrence of numerous small
species of Helicidae, belonging chiefly to the groups Pella, Phasis,
Dorcasia, and Sculptaria, all of which are practically peculiar.
Carnivorous genera are also prominent, Ennea here attaining its
maximum. Rhytida (to which several species still regarded as Pella
belong) is common only to the S. Pacific and Australasia, and forms,
with Isidora among the fresh-water pulmonates, a remarkable link of
connexion. Aerope, the largest of all helicoid carnivorous genera,
and Chlamydephorus, a carnivorous slug with an internal shell, are
peculiar. Achatina is still abundant, but Limicolaria is wanting.
Livinhacea, a form with a continuous peristome, perhaps akin to
Bulimus; Apera, a form of slug; and Coeliaxis, a genus perhaps akin
to the Papuan and Queensland Perrieria, are all peculiar. The land
operculates, which are not numerous, are of the East African type.
Land Mollusca of the S. African Sub-region
Chlamydephorus 1
Ennea 31
Aerope 5
Rhytida 3
Helicarion 3
Trochonanina 1
Trochozonites 1
Limax 1
Apera 1
Vitrina 7
Nanina 6
Conulus 2
Patula 2
Pella 44
Dorcasia 8
Phasis 1
Sculptaria 2
Helix (inc. sed.) 4
Rachis 1
Pachnodus 3
Buliminus (?) 4
Pupa 20
Vertigo 2
Achatina 18
Livinhacea 1
Stenogyra 4
Coeliaxis 1
Succinea 3
Vaginula 2
Cyclophorus 1
Cyclostoma 7
Cyclotus (?) 1
Blanfordia 1
St. Helena.—The Molluscan fauna of St. Helena is perhaps the
most puzzling, as regards its geographical affinities, of any in the
world. It consists of 29 peculiar species of land Mollusca (fresh-water
species being unknown), 19 of which are recently extinct, partly
owing to the destruction of the forest, but are found in considerable
abundance in a state of good preservation.[375] The genera are—
Hyalinia 1
Patula 4 (3 extinct)
Endodonta 10 (7 extinct)
Bulimulus 7 (5 extinct)
Pachyotus 1 (extinct)
Tomigerus (?) 1 (extinct)
Pupa 2 (extinct)
Succinea 3
The 5 genera which concentrate our attention are Patula,
Endodonta, Pachyotus (Fig. 222), Tomigerus, and Bulimulus, all of
which appear utterly strange to an oceanic island in the middle of the
S. Atlantic. Patula and Endodonta are essentially Polynesian forms,
occurring abundantly on all the island groups in the Central Pacific.
Pachyotus, Tomigerus (assuming its correct identification), and
Bulimulus are all S. American forms, the two former being especially
characteristic of Brazil. How this mixture of genera now confined to
regions so widely distant, not only from St. Helena itself, but from
one another, became associated here, is a problem obviously not
easy of solution. The fauna is probably a remnant of a very ancient
type, possibly at one time much more widely distributed. Endodonta
(an essentially insular form, like Omphalotropis) actually occurs on
Fernando Noronha, off the Brazil coast, and we shall see how an
Indian and even a Polynesian element is present off the eastern
coasts of Africa.
Ascension I.—One indigenous species, a so-called Limax, is all
that has ever been discovered.
(3) The Malagasy Sub-region includes Madagascar with its
attendant satellites Bourbon, Mauritius, and Rodriguez, and the
Seychelles and Comoro groups. No land Mollusca are known from
the Amirantes, the Chagos, or from Aldabra. The special
characteristics of the sub-region are the great development of the
carnivorous land Mollusca (Ennea, Gibbus), the occurrence of a
considerable number of true Helicidae of great size and beauty, and
the prominence of the genus Cyclostoma.
(a) The Madagascan Province.—The land Mollusca of
Madagascar, although as yet imperfectly known, possess a striking
individuality. Two of the chief characteristics of the Ethiopian region
are the paucity of its land operculate and of its Helix fauna;
Madagascar is especially distinguished by the rich development of
both these groups. For size, colouring, and beauty of shape, the
Helicidae of the two sub-genera Ampelita and Helicophanta rival, if
they do not surpass, any in the world. They are quite peculiar to this
sub-region, not a trace of them occurring on the Mascarenes,
Seychelles, or even on the Comoros. Helicophanta is distinguished
by the enormous size of its embryonic shell, which persists in the
adult (Fig. 223), and in this respect the group appears to be related
to Acavus (Ceylon, Fig. 204) and Panda (N.E. Australia). As is usual
when Helix is well developed, Nanina (about 12 sp.) is
proportionately scanty.
The African Bulimini (Pachnodus and Rachis) are represented by
two species, but Achatina, so abundant on the mainland, is scarce.
Two other groups of Buliminus, Leucotaenia and Clavator, are
peculiar. The presence of a single Kaliella, specifically identical with
a common Indian form, is very remarkable.
Cyclostoma proper, of which Madagascar is the metropolis, is
richly developed (54 sp.). Many of the species are of great size and
of striking beauty of ornamentation. Unlike its Helicidae, this genus is
not restricted to Madagascar; several species occur on the mainland,
6 on the Comoros, one on the Seychelles, and 16 in Mauritius. The
sub-genera Acroptychia and Hainesia are peculiar.
Fig. 224.—Cyclostoma
campanulatum Pfr., Madagascar.
The fresh-water Mollusca of Madagascar contain further traces of
Indian relationship. Thus we find two species of Paludomus, a genus
whose metropolis is Ceylon, India, and Further India, and which is
barely represented on the Seychelles and in the Somali district.
Melanatria, which is peculiar to Madagascar, has its nearest affinities
in the Cingalese and East Indian faunas. Several of the Melania and
the two Bithynia are of a type entirely wanting in Africa, but common
in the Indo-Malay sub-region. Not a single one of the characteristic
African fresh-water bivalves (Mutela, Spatha, Aetheria, Galatea, etc.)
has been found in Madagascar. On the other hand, certain African
Gasteropoda, such as Cleopatra and Isidora, occur, indicating, in
common with the land Mollusca, that an ultimate land connexion with
Africa must have taken place, but at an immeasurably remote period.
Land and Fresh-water Mollusca of Madagascar
Ennea 9
Urocyclus 2
Helicarion (?) 1
Macrocyclis (?) 1
Kaliella 1
Nanina (inc. sed.) 9
Ampelita 35
Helicophanta 17
Pachnodus 2
Rachis 2
Leucotaenia 2
Clavator 2
Achatina 3
Opeas 2
Subulina 3
Vaginula 4
Limnea 2
Planorbis 3
Isidora 3
Melania 7
Melanatria 4
Paludomus 2
Vivipara 1
Bithynia 2
Cleopatra 2
Ampullaria 6
Cyclophorus 2
Cyclotus (?) 1
Cyclostoma 54
Otopoma 5
Lithidion 1
Acroptychia 3
Hainesia 3
Unio 1
Corbicula 2
Sphaerium 1
Pisidium 1
The Comoro Islands.—This isolated group possesses about 100
species, almost all of which are peculiar. The principal feature is the
rich development of Ennea (30 sp.). On the whole the group shows
more relationship to Madagascar than to the mainland. Thus we
have six species of true Cyclostoma, and only one Achatina, while
among the fresh-water genera is Septaria, which is characteristic of
the whole Malagasy Sub-region, but is absent from the mainland.
The Helicidae are all of insignificant size. Peculiar to the group is the
remarkable genus Cyclosurus (Fig. 152, p. 247).
(b) The Mascarene Province (Mauritius, Bourbon, Rodriguez, and
the Seychelles).—The percentage of peculiar species, which is very
high, can only be paralleled in the case of some of the West Indian
islands, and sufficiently attests the extreme isolation of the group
from Madagascar. We have—
Total sp. Land sp. Fresh-water Peculiar Peculiar to
sp. group
Mauritius 113 104 9 78 102 (90 p.c.)
Bourbon 45 40 5 19 38 (84 p.c.)
Rodriguez 23 19 4 15 21 (95 p.c.)
Seychelles 34 27 7 24 30 (90 p.c.)
The Mollusca of the group exhibit three distinct elements, the
Indigenous, the Madagascan, and the Indian and Australasian.
The genus Pachystyla (Naninidae) is quite peculiar, forming the
main portion of the land snails proper. It attains its maximum in
Mauritius (17 sp.), with 5 sp. in Bourbon and one sub-fossil sp. in
Rodriguez, while in the Seychelles it is absent. But the principal
feature of the Mascarene group is the extraordinary development of
the carnivorous genus Gibbus, which has 27 sp. in Mauritius, 8 in
Bourbon, 4 in Rodriguez; in the Seychelles, it is replaced by
Edentulina and Streptostele. The principal link with Madagascar is
found in a part of the operculate land fauna. Cyclostoma is present
(with Otopoma) in several fine living forms, and the number of sub-
fossil species is a clear indication that this group was, not long ago,
much more abundant, for of the 16 Cyclostoma known from
Mauritius 10 are sub-fossil. The operculates form a decided feature
of the land fauna; thus in Mauritius there are 32 species, or more
than 28 per cent of the whole.