# Microeconomics

**Our complete Microeconomics package includes:**

**12-month Online Subscription**to our complete Microeconomics course with video lessons, day-by-day lesson plans, automatically graded exercises, and much more.**CD Set**(optional) contains all of the video lessons so that you can watch them when you're away from the internet.**Printed Notes**(optional) are the Microeconomics course notes from the Online Subscription printed in a black & white, on-the-go format. These are available for purchase from the Microeconomics Course Site.

### Microeconomics details

Thinkwell's Microeconomics is a one-semester college-level course. Paired with Macroeconomics, it comprises a one-year curriculum. (Our Economics course is a combination of both Micro and Macro.) Taught by acclaimed professor Steven Tomlinson, one of our country's most talented teachers, it's a great way to learn about the complicated exchanges of goods and services that we deal with every day.

Thinkwell's Microeconomics has all the features your home school needs:

- More than 130 topics with 170+ educational video lessons
- Microeconomics practice tests and chapter tests for all 10 chapters, as well as midterm and final exams.
- 84 available contact hours (What is this?)
The number of contact hours in a course reflects the amount of time a student will typically spend completing the assignments in each course (i.e. watching videos, doing exercises, taking exams, etc...). Many people think about contact hours as the "seat time" for a course. Thinkwell provides this information so you can ensure that the amount of instruction in a Thinkwell course meets the standards and requirements for your state or region.
- 31-week lesson plan with daily assignments (see lesson plan)
- 1000+ interactive microeconomics exercises with immediate feedback allow you to track your progress (See sample)
- Printable illustrated notes for each topic
- Glossary of 300 microeconomics terms
- Engaging content to help students advance their knowledge of economics:
- Supply, demand, equilibrium, and elasticity
- Consumer choice
- Production and costs
- Competitive markets and monopolies
- Resource markets
- Uncertainty, externalities, and market failure
- International trade

### About the Author

### Table of Contents

(Expand All - Close All)#### 1. Introduction to Economic Thinking

- 1.1 Basic Economics Ideas
- 1.1.1 Defining Economics

- 1.1.2 Understanding the Concept of Value

- 1.2 Using Graphs
- 1.2.1 Using Graphs to Understand Direct Relationships

- 1.2.2 Plotting a Linear Relationship between Two Variables

- 1.2.3 Changing the Intercept of a Linear Function

- 1.2.4 Understanding the Slope of a Linear Function

- 1.3 Advanced Graphical Concepts
- 1.3.1 Understanding Tangent Lines

- 1.3.2 Working with Three Variables on a Graph

- 1.4 Production Possibilities
- 1.4.1 Understanding the Concept of Production Possibilities Frontiers

- 1.4.2 Understanding How a Change in Technology or Resources Affects the PPF

- 1.4.3 Deriving an Algebraic Equation for the Production Possibilities Frontier

- 1.5 Comparative Advantage
- 1.5.1 Defining Comparative Advantage with the Production Possibilities Frontier

- 1.5.2 Understanding Why Specialization Increases Total Output

- 1.5.3 Analyzing International Trade Using Comparative Advantage

#### 2. Understanding Markets

- 2.1 Demand
- 2.1.1 Understanding the Determinants of Demand

- 2.1.2 Understanding the Basics of Demand

- 2.1.3 Analyzing Shifts in the Demand Curve

- 2.1.4 Changing Other Demand Variables

- 2.1.5 Deriving a Market Demand Curve

- 2.2 Supply
- 2.2.1 Understanding the Determinants of Supply

- 2.2.2 Deriving a Supply Curve

- 2.2.3 Understanding a Change in Supply versus a Change in Quantity Supplied

- 2.2.4 Analyzing Changes in Other Supply Variables

- 2.2.5 Deriving a Market Supply Curve from Individual Supply Curves

- 2.3 Equilibrium
- 2.3.1 Determining a Competitive Equilibrium

- 2.3.2 Defining Comparative Statics

- 2.3.3 Classifying Comparative Statics

- 2.4 Elasticity
- 2.4.1 Defining Elasticity

- 2.4.2 Calculating Elasticity

- 2.4.3 Applying the Concept of Elasticity

- 2.4.4 Identifying the Determinants of Elasticity

- 2.4.5 Understanding the Relationship between Total Revenue and Elasticity

- 2.5 Interfering with Markets
- 2.5.1 Understanding How Price Controls Damage Markets

- 2.5.2 Understanding the Problem of Minimum Wages in Labor Markets

- 2.5.3 Understanding How an Excise Tax Affects Equilibrium

- 2.6 Agriculture Economics
- 2.6.1 Examining Problems in Agricultural Economics

#### 3. Consumer Choice and Household Behavior

- 3.1 Utility Theory
- 3.1.1 Understanding Utility Theory

- 3.1.2 Finding Consumer Equilibrium

- 3.2 Budget Constraints and Indifference Curves
- 3.2.1 Constructing a Consumer's Budget Constraint

- 3.2.2 Understanding a Change in the Budget Constraint

- 3.2.3 Understanding Indifference Curves

- 3.3 Consumer Optimization
- 3.3.1 Locating the Consumer's Optimal Combination of Goods

- 3.3.2 Understanding the Effects of a Price Change on Consumer Choice

- 3.3.3 Deriving the Demand Curve

#### 4. Production and Costs

- 4.1 The Basics of Production
- 4.1.1 Understanding Output, Inputs, and the Short Run

- 4.1.2 Explaining the Total Product Curve

- 4.1.3 Drawing Marginal Product Curves

- 4.1.4 Understanding Average Product

- 4.1.5 Relating Costs to Productivity

- 4.2 Variable Costs
- 4.2.1 Defining Variable Costs

- 4.2.2 Graphing Variable Costs

- 4.2.3 Graphing Variable Costs Using a Geometric Trick

- 4.3 Marginal Costs
- 4.3.1 Defining Marginal Costs

- 4.3.2 Deriving the Marginal Cost Curve

- 4.3.3 Understanding the Mathematical Relationship between Marginal Cost and Marginal Product

- 4.4 Average Costs
- 4.4.1 Defining Average Variable Costs

- 4.4.2 Understanding the Relationship between Average Variable Cost and Average Product of Labor

- 4.4.3 Understanding the Relationship between Marginal Cost and Average Variable Cost

- 4.5 Total Costs
- 4.5.1 Defining and Graphing Average Fixed Cost and Average Total Cost

- 4.5.2 Calculating Average Total Cost

- 4.5.3 Putting the Cost Curves Together

- 4.6 Long-Run Production and Costs
- 4.6.1 Defining the Long Run

- 4.6.2 Determining a Firm's Return to Scale

- 4.6.3 Understanding Short-Run and Long-Run Average Cost Curves

- 4.6.4 Shifts in Cost Curves

- 4.7 Isocost/Isoquant Analysis
- 4.7.1 Constructing Isocost Lines

- 4.7.2 Understanding Isoquants

- 4.7.3 Finding the Cost-Minimizing Combination of Capital and Labor

#### 5. Perfect Competition

- 5.1 The Basic Assumptions of Competitive Markets
- 5.1.1 Understanding the Role of Price

- 5.1.2 Understanding Market Structures

- 5.1.3 Finding Economic and Accounting Profit

- 5.2 Calculating Profit and Loss
- 5.2.1 Finding the Firm's Profit-Maximizing Output Level

- 5.2.2 Proving the Profit-Maximizing Rule

- 5.2.3 Calculating Profit

- 5.2.4 Calculating Loss

- 5.2.5 Finding the Firm's Shut-Down Point

- 5.3 Market Supply
- 5.3.1 Deriving the Short-Run Market Supply Curve

- 5.3.2 Relating the Individual Firm to the Market

- 5.3.3 Examining Shifts in the Short-Run Market Supply Curve

- 5.3.4 Deriving the Long-Run Market Supply Curve

- 5.4 Competitive Firms' Responses to Price Changes
- 5.4.1 Examining the Firm's Long-Run and Short-Run Adjustments to a Price Increase

#### 6. Other Market Models

- 6.1 Monopolies
- 6.1.1 Defining Monopoly Power

- 6.1.2 Defining Marginal Revenue for a Firm with Market Power

- 6.1.3 Determining the Monopolist's Profit-Maximizing Output and Price

- 6.1.4 Calculating a Monopolist's Profit and Loss

- 6.1.5 Graphing the Relationship between Marginal Revenue and Elasticity

- 6.2 The Social Cost of Monopoly
- 6.2.1 Determining the Social Cost of Monopoly

- 6.2.2 Calculating Deadweight Loss

- 6.2.3 Understanding Monopoly Regulation

- 6.3 Oligopoly
- 6.3.1 Introducing Oligopoly and the Prisoner's Dilemma

- 6.3.2 Understanding a Cartel As a Prisoner's Dilemma

- 6.3.3 Understanding the Kinked-Demand Curve Model

- 6.4 Monopolistic Competition
- 6.4.1 Defining Monopolistic Competition

- 6.4.2 Understanding Pricing and Output under Monopolistic Competition

- 6.4.3 Understanding Monopolistic Competition As a Prisoner's Dilemma

#### 7. Resource Markets

- 7.1 The Derived Demand for Labor
- 7.1.1 Deriving the Factor Demand Curve

- 7.1.2 Deriving the Least-Cost Rule

- 7.1.3 Analyzing the Labor Market

- 7.2 Monopsony
- 7.2.1 Understanding Labor Market Power and Marginal Factor Cost

- 7.3 Capital Markets
- 7.3.1 Analyzing Capital Markets

#### 8. Market Failures

- 8.1 Overview of Market Failures
- 8.1.1 Understanding Market Failures

- 8.2 Public Goods and Public Choice
- 8.2.1 Defining Public Goods

- 8.2.2 Analyzing the Tax System

- 8.2.3 Understanding Public Choice

- 8.3 Uncertainty
- 8.3.1 Understanding Expected Value, Risk, and Uncertainty

- 8.3.2 Understanding Asymmetric Information as an Economic Problem

- 8.3.3 Understanding Moral Hazards in Markets

- 8.4 Externalities
- 8.4.1 Defining Externalities

- 8.4.2 Explaining How to Internalize External Costs

- 8.4.3 Explaining How to Internalize External Benefits

- 8.5 Solutions to Externalities
- 8.5.1 Finding a Market Solution to External Costs

- 8.5.2 Finding a Negotiated Settlement to an External Cost

- 8.5.3 Applying the Coase Theorem

#### 9. International Trade

- 9.1 The Basics of Open Economies
- 9.1.1 Determining the Difference between a Closed Economy and an Open Economy

- 9.1.2 Understanding Exports in an Open Economy

- 9.1.3 Analyzing a Change in Equilibrium in an Open Economy

#### 10. Evaluating Market Outcomes

- 10.1 Normative Economics
- 10.1.1 Measuring the Benefits of Consumption

- 10.1.2 Using the Demand Curve As a Measure of Benefit

- 10.2 Calculating Total Economic Value
- 10.2.1 Quantifying Benefit

- 10.2.2 Quantifying Cost

- 10.2.3 Determining Total Social Cost

- 10.2.4 Understanding Economic Value

- 10.3 Consumer and Producer Surplus
- 10.3.1 Understanding Producer and Consumer Surplus

- 10.3.2 Calculating Total Economic Value

- 10.4 Market Interference and Economic Value
- 10.4.1 Understanding the Effects of Price Controls

- 10.4.2 Understanding How Price Controls Destroy Economic Value

- 10.4.3 Evaluating the Effects of an Excise Tax

- 10.4.4 Assessing the Effect of an Excise Tax on Economic Value

- 10.4.5 Understanding How a Tax Can Create Deadweight Loss

- 10.5 International Trade and Economic Value
- 10.5.1 Evaluating the Gains from International Trade

- 10.5.2 Understanding the Effects of Tariffs on Consumer and Producer Surplus