Titlebook: Microeconomics; The Firm and the Mar Mike Rosser Textbook 1988Latest edition Macmillan Publishers Limited 1988 microeconomics.Monopol.Oligo

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The market economy,ed for students who are studying the subject for the first time. Many of those using this book will have already studied economics at A level, or will have followed some other introductory economics course, and should be familiar with this material. These students can proceed straight to Chapter 2,

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Production,oduction relationship will directly determine the cost of producing any given level of output if it is assumed that input prices do not change. The economic theory of production also assumes that the state of technology does not change and that all firms use the most efficient technology available.

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Oligopoly,ificant effect on the sales of other firms. Some theories of oligopoly assume that all firms produce a homogeneous product, which may be true in a number of cases, such as the market for petrol, but there are also many oligopolies where the product is differentiated, for instance, the car industry.

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Consumer theory,umers’ incomes, and the prices of other goods. This chapter analyses more fully some basic principles of demand theory which were presented in Chapter 1. The model of consumer behaviour developed can also be applied to other aspects of individual decision making, such as the labour supply decision.

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Factor markets,herefore depend on the prices paid for these factors and the amounts sold. This chapter explains how the markets for factors of production operate and how these prices and quantities will be determined. The markets for the different factors of land, labour and capital have several common features, b

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