Instructions for living a life.
Tell about it.
Chapter 1 Consumer Theory: Maximize utility subject to the budget constraint
1.1 The budget constraint
The first ingredient in consumer theory we consider is the budg
Chapter 2 Factor Markets
The production function with one input
In this chapter we will study the market for factors of production such as labor, capital, fuel, etc.
We will begin with the market for labor. For starters we think of a homogeneous type of l
Chapter 3 Competitive Markets
Basic Analytics of Price Determination
We are now in a position to think about how markets work, at least if they are competitive
markets. In chapter 1 we laid the foundation for demand of consumption goods and supply of