Chapter Questions
What are the general features of decision making of a baker, a manager of a basketball team, and a couple getting married?
Why is it necessary to choose between alternatives?
What might be the «opportunity costs» of reading this textbook (not to mention the benefits!)?
Which factors might influence an individual consumer's decision on how to divide his/her time between work, leisure, and education?
When deciding on the bundle of consumption goods to buy, what is the goal and what is the constraint of an individual consumer?
Can we expect that two consumers with identical budget, confronted with identical consumption goods and identical prices will choose an identical bundle of these goods?
What is the meaning and the purpose of a «comparative static analysis»?
Through what kind of thought experiment can a firm succeed in identifying its profit maximizing quantity of production?
What is the meaning of «perfect competition»?
Starting from individual demand and supply decisions, how are «market demand $»$ and «market supply» arrived at?
Please discuss the concept of «market failure».
Please distinguish partial from total equilibrium theory.