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Intermediate microeconomics : A modern approach

01 Jan 2006-
TL;DR: The Varian approach as mentioned in this paper gives students tools they can use on exams, in the rest of their classes, and in their careers after graduation, and is still the most modern presentation of the subject.
Abstract: This best-selling text is still the most modern presentation of the subject. The Varian approach gives students tools they can use on exams, in the rest of their classes, and in their careers after graduation.
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Journal ArticleDOI
TL;DR: In this article, the envelope relationship between long run and short run cost functions is discussed and the authors compare the usually presented relationship with one of different form and implications, resulting from a simple production function and constant prices.
Book ChapterDOI
01 Jan 2002
TL;DR: In this paper, the authors present a set of tools that can be used in the study of the allocation affects of different distortions in the welfare problem, including linearly homogeneous production functions.
Abstract: The welfare problem is complicated and in order to carry out a more profound analysis we need to master some technical refinements, ‘tools’, that may be used in the study of the allocation affects of different distortions. The present chapter provides a set of such tools. We begin with a look at the characteristics of linearly homogeneous production functions (which are often preferred to a more general formulation because they are easier to handle). Thereafter we move on to a specific graphic technique of presenting the production function, the so-called factor diagram. With the aid of this, another graphic tool, the box diagram, can be constructed, which allows us to take both commodity and factor markets into account simultaneously. From the box diagram the production possibility curve may be derived, and this shows all the combinations of (two) goods that an economy can produce with given resources. If this is combined with social indifference curves (showing the preferences of society) and relative commodity prices we may shed light on the interaction between production (supply) and demand.
Journal ArticleDOI
TL;DR: In this paper, the authors consider the case of the vertical production chain, where heavy fixed investment are needed in at least one segment, the issue is what the best composition of market regime in every segment would be from the social point of view, respecting the optimal social welfare.
Abstract: Italian Abstract: Nel caso di una filiera verticale di produzione in cui siano necessari forti investimenti di capitale fisso in qualche segmento ci si chiede quale sia la composizione di forme di mercato piu efficiente dal punto di vista sociale (soluzione integrata del pianificatore sociale) e, qualora la soluzione integrata sia la migliore, come riuscire ad implementarla in soluzioni private decentrate. Vengono esaminate le soluzioni di concorrenza perfetta a monte o a valle, laddove l'altro segmento resti in regime di monopolio. L'uso di funzioni lineari permette il calcolo completo e la visualizzazione delle soluzioni.English Abstract: In the case of the vertical production chain, where heavy fixed investment are needed in at least one segment, the issue is what the best composition of market regime in every segment would be from the social point of view, respecting the optimal social welfare. Taking as granted that the social integrated optimum is the best, the next issue is how to best implement it in private decentralized solutions. We examine and compare solutions with upstream or downstream competitive regime, leaving monopoly in the residual segment. Use of linear functions allow to fully compute and visualize solutions.
Book ChapterDOI
01 Jan 2016
TL;DR: In this paper, the authors examined the mainstream theory of profit determination in an economy and showed that there is actually no coherent theory, yet profits are said to be one of the most important components of the macroeconomy.
Abstract: In this chapter, the author examines the mainstream theory of profit determination in an economy. It is shown that there is actually no coherent theory, yet profits are said to be one of the most important components of the macroeconomy. The actual determination of profits is then explored and the implications for the theory of income distribution. From here, simple macroeconomic models are developed that outline the workings of a closed macroeconomy. These models are demand-driven and take into consideration changes in aggregates prices together with the effects on distribution that arise from such changes. The chapter closes with a discussion on how optimal income distribution is effectively a moral question and cannot be examined with any ‘neutral’ economic theory.