• How to learn basic microeconomics in a few hours (read my book)

    micro made simple

    My book on basic microeconomics, coauthored by Mike Piper, is out. It’s called Microeconomics Made Simple and, as the title suggests, it’s a gentle introduction to the basics. At just 100 pages, it’s a quick read.

    I want you to buy it, to read it, to love it, and to tell your friends, family members, and social media followers about it.

    Here are some possible reasons why you might be interested in the book:

    • You never learned microeconomics and yearn for a basic intro that won’t take much time or make your brain hurt
    • You learned microeconomics, but so long ago you’re rusty and want to brush up
    • You’re a student, with a microeconomics course in your future and you want to get a jump on the basic concepts
    • You’re taking a microeconomics course right now, but it’s going too fast for you and you want a simple way to review the fundamentals
    • You will be or are taking some other social science or business course for which a basic understanding of microeconomics would be helpful, even if it’s not required
    • You find yourself puzzled by some discussions of markets or profits or opportunity cost or other microeconomic concepts and want a way to get up to speed
    • You teach microeconomics or some other social science or business course and you think some or all of your students could benefit from access to a gentle introduction to microeconomics
    • You want a quick way to understand the limitations of economics (yeah, we cover that too)

    For a limited time, the Kindle price will be discounted from $4.99 to $0.99. You can buy the book at Amazon.com. Below are some additional details, including a table of contents and links to excerpts.

    Summary

    Part One, explains the most fundamental concepts of microeconomics, such as utility, supply, demand, market equilibrium, and some ways in which governments intervene in markets.

    Part Two focuses on the degree of competition in different types of markets, as well as the outcomes of competition. Market structures considered include: perfect competition, monopolies, oligopolies, and monopolistic competition.

    The Authors

    My coauthor, Mike Piper, is a certified public accountant and an expert at distilling complex topics into simple language and examples. This is his eighth book that does so (others here) and his blog on personal finance is excellent. As you know, I’m a health economist and, as such, have devoted a great deal of my professional life thinking about microeconomic concepts. We teamed up to explain all the microeconomics we could in 100 pages.

    Special thanks go to Wade Pfau and Julian Jamison for contributing their time and expertise for technical editing.

    Excerpts

    Click on the following links for excerpts. Note that each is out of context. The book assumes no prior knowledge of economics so, in the context of the book, each excerpt is fully accessible to a non-expert.

    Errata

    Please bring errors in the book to our attention. As we find and fix them, we’ll post the details here.

    Table of Contents

    Introduction:

    What Is Economics?

    Macroeconomics vs. Microeconomics

    Not a Perfect Model

    Part One: Basic Economic Concepts

    1. Maximizing Utility

    What about Charity?

    Decreasing Marginal Utility

    Opportunity Cost

    2. Evaluating Production Possibilities

    Production Possibilities Frontier

    Absolute Advantage and Comparative Advantage

    3. Demand

    Elasticity of Demand

    Change in Demand vs. Change in Quantity Demanded

    4. Supply

    How Costs of Production Affect Supply

    Elasticity of Supply

    Change in Supply vs. Change in Quantity Supplied

    5. Market Equilibrium

    How Market Equilibrium Is Reached

    The Effect of Changes in Supply and Demand

    6. Government Intervention

    Price Floors and Price Ceilings

    Taxes and Subsidies

    Part Two: Firm Behavior in Different Types of Markets

    7. Costs of Production

    Marginal Cost of Production

    Fixed vs. Variable Costs

    Short Run vs. Long Run

    Sunk Costs Are Irrelevant

    Economic Costs vs. Accounting Costs

    Average Total Costs

    8. Perfect Competition

    Firms Are Price Takers

    Making Decisions at the Margin

    Calculating Profit or Loss

    Zero Economic Profits in the Long Run

    Firms Producing at Their Lowest Cost

    Producing at a Loss in the Short Run

    Consumer and Producer Surplus

    9. Monopoly

    Monopolies Have Market Power

    Marginal Revenue Curve for a Monopoly

    Maximizing Profit (Producing at MC = MR)

    Profits and Losses for Monopolies

    Monopolies: Producing at a Higher Cost

    Loss of Surplus with a Monopoly

    Monopolies and Government

    10. Oligopoly

    Firms Are Not Price Takers

    Collusion in an Oligopoly

    Cheating the Cartel

    Government Intervention in Oligopolies

    11. Monopolistic Competition

    Making Decisions at the Margin

    No Profits in the Long Run

    Firms Do Not Produce at Lowest Cost

    Loss of Surplus with Monopolistic Competition

    Conclusion: The Insights and Limitations of Economics

    Appendix A: Helpful Resources

    Appendix B: Glossary

    Acknowledgments

    Other Books in the Series

    Buy Microeconomics Made Simple.

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