Microeconomics, Student Value Edition

Introduction -- Economics: foundations and models -- Trade-offs, comparative advantage, and the market system -- Where prices come from : the interaction of demand and supply -- Economic efficiency, government price setting, and taxes -- Externalities, environmental policy, and public goods -- Elasticity : the responsiveness of demand and supply -- The economics of health care -- Firms in the domestic and international economies -- Firms, the stock market, and corporate governance -- Comparative advantage and the gains from international trade -- Microeconomic foundations : consumers and firms -- Consumer choice and behavioral economics -- Technology, production, and costs -- Firms in perfectly competitive markets -- Monopolistic competition: the competitive model in a more realistic setting -- Oligopoly : firms in less competitive markets -- Monopoly and antitrust policy -- Pricing strategy -- Labor markets, public choice, and the distribution of income -- The markets for labor and other factors of production -- Public choice, taxes, and the distribution of income -- Critical thinking exercises -- Glossary -- Company index -- Subject index -- Credits. Cover......Page 1 Title Page......Page 2 Copyright Page......Page 3 Forward......Page 4 About the Authors......Page 6 Brief Contents......Page 7 Contents......Page 8 Flexibility Chart......Page 17 Preface......Page 20 A Word of Thanks......Page 43 Why Does Ford Assemble Cars in Both the United States and Mexico?......Page 45 1.1. Three Key Economic Ideas......Page 47 Apply the Concept: Does Health Insurance Give People an Incentive to Become Obese?......Page 48 Solved Problem 1.1: The Marginal Benefit and Marginal Cost of Speed Limits......Page 50 1.2. The Economic Problem That Every Society Must Solve......Page 51 Who Will Receive the Goods and Services Produced?......Page 52 The Modern “Mixed” Economy......Page 53 Efficiency and Equity......Page 54 The Role of Assumptions in Economic Models......Page 55 Forming and Testing Hypotheses in Economic Models......Page 56 Don’t Let This Happen to You: Don’t Confuse Positive Analysis with Normative Analysis......Page 57 Apply the Concept: What Can Economics Contribute to the Debate over Tariffs?......Page 58 1.5. Economic Skills and Economics as a Career......Page 59 1.6. A Preview of Important Economic Terms......Page 60 Conclusion......Page 62 An Inside Look: Is Manufacturing Returning to the United States?......Page 63 Chapter Summary and Problems......Page 65 Appendix: Using Graphs and Formulas......Page 71 Graphs of One Variable......Page 72 Graphs of Two Variables......Page 73 Slopes of Lines......Page 74 Positive and Negative Relationships......Page 75 Determining Cause and Effect......Page 77 Slopes of Nonlinear Curves......Page 78 Formulas......Page 79 Formulas for the Areas of a Rectangle and a Triangle......Page 80 Problems and Applications......Page 81 Managers at Tesla Motors Face Trade-offs......Page 83 Graphing the Production Possibilities Frontier......Page 85 Solved Problem 2.1: Drawing a Production Possibilities Frontier for Tesla Motors......Page 87 Increasing Marginal Opportunity Costs......Page 89 Economic Growth......Page 90 Specialization and Gains from Trade......Page 91 Absolute Advantage versus Comparative Advantage......Page 93 Don’t Let This Happen to You: Don’t Confuse Absolute Advantage and Comparative Advantage......Page 94 Solved Problem 2.2: Comparative Advantage and the Gains from Trade......Page 95 Apply the Concept: Comparative Advantage, Opportunity Cost, and Housework......Page 96 2.3. The Market System......Page 97 The Circular Flow of Income......Page 98 The Market Mechanism......Page 99 Apply the Concept: A Story of the Market System in Action: How Do You Make an iPad?......Page 100 The Legal Basis of a Successful Market System......Page 102 Apply the Concept: Managers at Feeding America Use the Market Mechanism to Reduce Hunger......Page 105 Conclusion......Page 106 An Inside Look: Tesla Bets Big on Nevada Battery Plant......Page 107 Chapter Summary and Problems......Page 109 How Smart Is Your Water?......Page 115 Demand Schedules and Demand Curves......Page 117 What Explains the Law of Demand?......Page 118 Variables That Shift Market Demand......Page 119 Apply the Concept: Virtual Reality Headsets: Will a Substitute Fail for a Lack of Complements?......Page 120 Apply the Concept: Millennials Shake Up the Markets for Soda, Groceries, Big Macs, and Running Shoes......Page 121 Apply the Concept: Forecasting the Demand for Premium Bottled Water......Page 124 3.2. The Supply Side of the Market......Page 125 Variables That Shift Market Supply......Page 126 3.3. Market Equilibrium: Putting Demand and Supply Together......Page 129 How Markets Eliminate Surpluses and Shortages......Page 130 Solved Problem 3.3: Demand and Supply Both Count: A Tale of Two Letters......Page 131 The Effect of Shifts in Demand and Supply over Time......Page 133 Apply the Concept: Lower Demand for Orange Juice—But Higher Prices?......Page 135 Solved Problem 3.4: Can We Predict Changes in the Price and Quantity of Organic Corn?......Page 137 Shifts in a Curve versus Movements along a Curve......Page 138 Don’t Let This Happen to You: Remember: A Change in a Good's Price Does NotCause the Demand or Supply Curve to Shift......Page 139 Conclusion......Page 140 An Inside Look: McDonald’s Looks for New Ways to Attract Customers......Page 141 Chapter Summary and Problems......Page 143 What Do Food Riots in Venezuela and the Rise of Uber in the United States Have in Common?......Page 151 Consumer Surplus......Page 153 Apply the Concept: The Consumer Surplus from Uber......Page 155 Producer Surplus......Page 157 Marginal Benefit Equals Marginal Cost in Competitive Equilibrium......Page 158 Economic Surplus......Page 159 Economic Surplus and Economic Efficiency......Page 160 Price Floors: Government Policy in Agricultural Markets......Page 161 Apply the Concept: Price Floors in Labor Markets: The Debate over Minimum Wage Policy......Page 162 Price Ceilings: Government Rent Control Policy in Housing Markets......Page 164 Black Markets and Peer-to-Peer Sites......Page 165 Solved Problem 4.3: What’s the Economic Effect of a Black Market in Renting Apartments?......Page 166 Apply the Concept: Price Controls Lead to Economic Decline in Venezuela......Page 167 The Effect of Taxes on Economic Efficiency......Page 169 Tax Incidence: Who Actually Pays a Tax?......Page 170 Solved Problem 4.4: When Do Consumers Pay All of a Sales Tax Increase?......Page 171 Apply the Concept: Is the Burden of the Social Security Tax Really Shared Equally between Workers and Firms?......Page 173 Conclusion......Page 174 An Inside Look: Will Uber Be Required to Pay British VAT?......Page 175 Chapter Summary and Problems......Page 177 Demand and Supply Equations......Page 184 Calculating Consumer Surplus and Producer Surplus......Page 185 Problems and Applications......Page 187 Why Does ExxonMobil Want to Pay a Carbon Tax?......Page 189 The Effect of Externalities......Page 191 Externalities and Market Failure......Page 193 5.2. Private Solutions to Externalities: The Coase Theorem......Page 194 Apply the Concept: The Clean Air Act: How a Government Policy Reduced Infant Mortality......Page 195 Don’t Let This Happen to You: Remember That It’s the Net Benefit That Counts......Page 197 Do Property Rights Matter?......Page 198 Apply the Concept: How Can You Defend Your Knees on a Plane Flight?......Page 199 Imposing a Tax When There Is a Negative Externality......Page 200 Providing a Subsidy When There Is a Positive Externality......Page 201 Apply the Concept: Should the Government Tax Cigarettes and Soda?......Page 202 Solved Problem 5.3: Dealing with the Externalities of Car Driving......Page 203 Command-and-Control versus Market-Based Approaches......Page 205 Apply the Concept: Should the United States Enact a Carbon Tax to Fight Global Warming?......Page 206 5.4. Four Categories of Goods......Page 208 The Demand for a Public Good......Page 209 The Optimal Quantity of a Public Good......Page 210 Solved Problem 5.4: Determining the Optimal Level of Public Goods......Page 212 Common Resources......Page 213 Conclusion......Page 216 Chapter Summary and Problems......Page 217 Do Soda Taxes Work?......Page 225 Measuring the Price Elasticity of Demand......Page 227 An Example of Calculating Price Elasticities......Page 228 The Midpoint Formula......Page 229 Solved Problem 6.1: Calculating the Price Elasticity of Demand......Page 230 Polar Cases of Perfectly Elastic and Perfectly Inelastic Demand......Page 231 Availability of Close Substitutes......Page 233 Some Estimated Price Elasticities of Demand......Page 234 6.3. The Relationship between Price Elasticity of Demand and Total Revenue......Page 235 Elasticity and Revenue with a Linear Demand Curve......Page 236 Solved Problem 6.3: Price and Revenue Don’t Always Move in the Same Direction......Page 238 Apply the Concept: Why Does Amazon Care about Price Elasticity?......Page 239 Cross-Price Elasticity of Demand......Page 240 Income Elasticity of Demand......Page 241 6.5. Using Elasticity to Analyze the Disappearing Family Farm......Page 242 Solved Problem 6.5: Using Price Elasticity to Analyze the Effects of a Soda Tax......Page 243 Determinants of the Price Elasticity of Supply......Page 245 Apply the Concept: Why Are Oil Prices So Unstable?......Page 246 Polar Cases of Perfectly Elastic and Perfectly Inelastic Supply......Page 247 Using Price Elasticity of Supply to Predict Changes in Price......Page 249 Conclusion......Page 250 Chapter Summary and Problems......Page 252 Where Will You Find Health Insurance?......Page 261 7.1. The Improving Health of People in the United States......Page 263 Reasons for Long-Run Improvements in U.S. Health......Page 264 The U.S. Health Care System......Page 265 Apply the Concept: The Increasing Importance of Health Care in the U.S. Economy......Page 267 The Health Care Systems of Canada, Japan, and the United Kingdom......Page 268 Comparing Health Care Outcomes around the World......Page 269 How Useful Are Cross-Country Comparisons of Health Outcomes?......Page 270 Adverse Selection and the Market for “Lemons”......Page 271 Asymmetric Information in the Market for Health Insurance......Page 272 Don’t Let This Happen to You: Don’t Confuse Adverse Selection with Moral Hazard......Page 273 Externalities in the Market for Health Care......Page 274 Should the Government Run the Health Care System?......Page 276 The Rising Cost of Health Care......Page 277 Apply the Concept: Are U.S. Firms Handicapped by Paying for Their Employees’ Health Insurance?......Page 279 Explaining Increases in Health Care Spending......Page 280 The Continuing Debate over Health Care Policy......Page 283 Solved Problem 7.4: Recent Trends in U.S. Health Care......Page 284 Apply the Concept: How Much Is That MRI Scan?......Page 286 Conclusion......Page 288 Chapter Summary and Problems......Page 289 Is Snapchat the Next Facebook . . . or the Next Twitter?......Page 295 Who Is Liable? Limited and Unlimited Liability......Page 297 Corporations Earn the Majority of Revenue and Profits......Page 298 Apply the Concept: Why Are Fewer Young People Starting Businesses?......Page 299 The Structure of Corporations and the Principal–Agent Problem......Page 300 Sources of External Funds......Page 301 Apply the Concept: The Rating Game: Are the Federal Government or State Governments Likely to Default on Their Bonds?......Page 302 Stock and Bond Markets Provide Capital—and Information......Page 304 Don’t Let This Happen to You: When Snap Shares Are Sold, Snap Doesn’t Getthe Money......Page 305 Apply the Concept: Why Are Many People Poor Stock Market Investors?......Page 307 Solved Problem 8.2: Why Does Warren Buffett Like Mutual Funds?......Page 308 The Income Statement......Page 309 The Balance Sheet......Page 310 Corporate Governance and the Financial Crisis of 2007–2009......Page 311 Did Principal–Agent Problems Help Cause the 2007–2009 Financial Crisis?......Page 312 Apply the Concept: Should Investors Worry about Corporate Governance at Snapchat?......Page 313 Conclusion......Page 315 Chapter Summary and Problems......Page 316 Using Present Value to Make Investment Decisions......Page 321 Solved Problem 8A.1: How to Receive Your Contest Winnings......Page 323 Using Present Value to Calculate Bond Prices......Page 324 A Simple Formula for Calculating Stock Prices......Page 325 Going Deeper into Financial Statements......Page 326 Analyzing Balance Sheets......Page 327 Problems and Applications......Page 329 President Trump, Oreo Cookies, and Free Trade......Page 331 9.1. The United States in the International Economy......Page 333 The Importance of Trade to the U.S. Economy......Page 334 9.2. Comparative Advantage in International Trade......Page 335 Comparative Advantage and Absolute Advantage......Page 336 Increasing Consumption through Trade......Page 337 Solved Problem 9.3: The Gains from Trade......Page 339 Why Don’t We See Complete Specialization?......Page 340 Apply the Concept: Who Gains and Who Loses from U.S. Trade with China?......Page 341 Where Does Comparative Advantage Come From?......Page 344 9.4. Government Policies That Restrict International Trade......Page 345 Tariffs......Page 346 Measuring the Economic Effect of the Sugar Quota......Page 347 Solved Problem 9.4: Measuring the Economic Effect of a Quota......Page 349 Apply the Concept: Smoot-Hawley, the Politics of Tariffs, and the Cost of Protecting a Vanishing Industry......Page 350 Why Do Some People Oppose the World Trade Organization?......Page 352 Apply the Concept: Protecting Consumer Health or Protecting U.S. Firms from Competition?......Page 355 Positive versus Normative Analysis (Once Again)......Page 356 Conclusion......Page 357 Chapter Summary and Problems......Page 358 J.C. Penney Customers Didn’t Buy into “Everyday Low Prices”......Page 367 Utility......Page 369 The Rule of Equal Marginal Utility per Dollar Spent......Page 370 Solved Problem 10.1: Finding the Optimal Level of Consumption......Page 373 What if the Rule of Equal Marginal Utility per Dollar Does Not Hold?......Page 374 Don’t Let This Happen to You: Equalize Marginal Utilities per Dollar......Page 375 The Income Effect and Substitution Effect of a Price Change......Page 376 10.2. Where Demand Curves Come From......Page 377 Apply the Concept: Are There Any Upward-Sloping Demand Curves in theReal World?......Page 379 The Effects of Celebrity Endorsements......Page 380 Network Externalities......Page 381 Does Fairness Matter?......Page 382 Apply the Concept: Who Made the Most Profit from the Broadway Musical Hamilton?......Page 384 Solved Problem 10.3: Why Doesn’t Tesla Charge Its Employees to Park Their Cars?......Page 386 Pitfalls in Decision Making......Page 388 Apply the Concept: A Blogger Who Understands the Importance of Ignoring Sunk Costs......Page 389 “Nudges”: Using Behavioral Economics to Guide Behavior......Page 390 The Behavioral Economics of Shopping......Page 391 Apply the Concept: J.C. Penney Meets Behavioral Economics......Page 392 Conclusion......Page 394 Chapter Summary and Problems......Page 395 Indifference Curves......Page 401 Can Indifference Curves Ever Cross?......Page 402 The Budget Constraint......Page 403 Choosing the Optimal Consumption of Pizza and Coke......Page 404 Apply the Concept: Apple Determines the Optimal Mix of iPhone Features......Page 405 Deriving the Demand Curve......Page 406 Solved Problem 10A.1: When Does a Price Change Make a Consumer Better Off?......Page 407 The Income Effect and the Substitution Effect of a Price Change......Page 408 The Slope of the Indifference Curve, the Slope of the Budget Line, and the Rule of Equal Marginal Utility per Dollar Spent......Page 410 The Rule of Equal Marginal Utility per Dollar Spent Revisited......Page 411 Problems and Applications......Page 413 Will the Cost of MOOCs Revolutionize Higher Education?......Page 415 Apply the Concept: Would You Please Be Quiet? Technological Change at Segment.com......Page 417 The Difference between Fixed Costs and Variable Costs......Page 418 Implicit Costs versus Explicit Costs......Page 419 The Production Function......Page 420 A First Look at the Relationship between Production and Cost......Page 421 The Law of Diminishing Returns......Page 422 Graphing Production......Page 423 The Relationship between Marginal Product and Average Product......Page 424 An Example of Marginal and Average Values: College Grades......Page 425 Why Are the Marginal and Average Cost Curves U Shaped?......Page 426 Solved Problem 11.4: Calculating Marginal Cost and Average Cost......Page 428 11.5. Graphing Cost Curves......Page 429 Economies of Scale......Page 431 Solved Problem 11.6: Using Long-Run Average Cost Curves to Understand Business Strategy......Page 432 Apply the Concept: The Colossal River Rouge: Diseconomies of Scale at Ford Motor Company......Page 434 Don’t Let This Happen to You: Don’t Confuse Diminishing Returns with Diseconomies of Scale......Page 435 Conclusion......Page 436 Chapter Summary and Problems......Page 437 An Isoquant Graph......Page 445 The Slope and Position of the Isocost Line......Page 446 Different Input Price Ratios Lead to Different Input Choices......Page 448 Solved Problem 11A.1: Firms Responding to Differences in Input Price Ratios......Page 449 Another Look at Cost Minimization......Page 450 Solved Problem 11A.2: Determining the Optimal Combination of Inputs......Page 451 Apply the Concept: Do National Football League Teams Behave Efficiently?......Page 452 The Expansion Path......Page 453 Problems and Applications......Page 454 Are Cage-Free Eggs the Road to Riches?......Page 457 A Perfectly Competitive Firm Cannot Affect the Market Price......Page 460 Don’t Let This Happen to You: Don’t Confuse the Demand Curve for Farmer Parker’s Wheat with the Market Demand Curve for Wheat......Page 461 12.2. How a Firm Maximizes Profit in a Perfectly Competitive Market......Page 462 Determining the Profit-Maximizing Level of Output......Page 463 12.3. Illustrating Profit or Loss on the Cost Curve Graph......Page 465 Showing Profit on a Graph......Page 466 Solved Problem 12.3: Determining Profit-Maximizing Price and Quantity......Page 467 Illustrating When a Firm Is Breaking Even or Operating at a Loss......Page 469 Apply the Concept: Losing Money in the Restaurant Business......Page 470 12.4. Deciding Whether to Produce or to Shut Down in the Short Run......Page 471 The Supply Curve of a Firm in the Short Run......Page 472 Solved Problem 12.4: When to Shut Down a Farm......Page 473 The Market Supply Curve in a Perfectly Competitive Industry......Page 474 Economic Profit and the Entry or Exit Decision......Page 475 Long-Run Equilibrium in a Perfectly Competitive Market......Page 477 The Long-Run Supply Curve in a Perfectly Competitive Market......Page 479 Apply the Concept: In the Apple App Store, Easy Entry Makes the Long Run Pretty Short......Page 480 Productive Efficiency......Page 481 Solved Problem 12.6: How Productive Efficiency Benefits Consumers......Page 482 Allocative Efficiency......Page 483 Conclusion......Page 484 Chapter Summary and Problems......Page 485 Will Panera’s “Pure Food” Advantage Last?......Page 493 Marginal Revenue for a Firm with a Downward-Sloping Demand Curve......Page 495 13.2. How a Monopolistically Competitive Firm Maximizes Profit in the Short Run......Page 497 Solved Problem 13.2: Does Minimizing Cost Maximize Profit at Apple?......Page 499 How Does the Entry of New Firms Affect the Profits of Existing Firms?......Page 500 Don’t Let This Happen to You: Don’t Confuse Zero Economic Profit with Zero Accounting Profit......Page 501 Apply the Concept: Is “Clean Food” a Sustainable Market Niche for Panera?......Page 503 Solved Problem 13.3: Red Robin Abandons an Experiment in Fast-Casual Restaurants......Page 504 13.4. Comparing Monopolistic Competition and Perfect Competition......Page 505 Is Monopolistic Competition Inefficient?......Page 506 Apply the Concept: One Way to Differentiate Your Restaurant? Become a Ghost!......Page 507 13.5. How Marketing Differentiates Products......Page 508 13.6. What Makes a Firm Successful?......Page 509 Apply the Concept: Is Being the First Firm in the Market a Key to Success?......Page 510 Conclusion......Page 512 Chapter Summary and Problems......Page 513 Apple, Spotify, and the Music Streaming Revolution......Page 521 14.1. Oligopoly and Barriers to Entry......Page 523 Barriers to Entry......Page 524 Apply the Concept: Got a Great Recipe for Cookies? Don’t Try Selling Them in Wisconsin or New Jersey......Page 526 14.2. Game Theory and Oligopoly......Page 527 A Duopoly Game: Price Competition between Two Firms......Page 528 Don’t Let This Happen to You: Don’t Misunderstand Why Each Firm Ends UpCharging a Price of $9.99......Page 529 Solved Problem 14.2: Is Offering a College Student Discount a Prisoner’s Dilemma for Apple and Spotify?......Page 530 Can Firms Escape the Prisoner’s Dilemma?......Page 531 Apply the Concept: Are the Big Four Airlines Colluding?......Page 532 Cartels: The Case of OPEC......Page 534 Deterring Entry......Page 535 Solved Problem 14.3: Is Deterring Entry Always a Good Idea?......Page 537 Bargaining......Page 538 Competition from Existing Firms......Page 539 The Bargaining Power of Suppliers......Page 540 Apply the Concept: Can We Predict Which Firms Will Continue to Be Successful?......Page 541 Conclusion......Page 542 Chapter Summary and Problems......Page 543 A Monopoly on Lobster Dinners in Maine?......Page 549 Apply the Concept: Is the NCAA a Monopoly?......Page 551 Government Action Blocks Entry......Page 553 Apply the Concept: Does Hasbro Have a Monopoly on Monopoly?......Page 554 Apply the Concept: Are Diamond Profits Forever? The De Beers Diamond Monopoly......Page 555 Network Externalities......Page 556 Natural Monopoly......Page 557 Marginal Revenue Once Again......Page 558 Profit Maximization for a Monopolist......Page 559 Solved Problem 15.3: Finding the Profit-Maximizing Price and Output for a Cable Monopoly......Page 561 Comparing Monopoly and Perfect Competition......Page 562 Measuring the Efficiency Losses from Monopoly......Page 563 How Large Are the Efficiency Losses Due to Monopoly?......Page 564 Antitrust Laws and Antitrust Enforcement......Page 565 Apply the Concept: Have Generic Drug Firms Been Colluding to Raise Prices?......Page 566 Mergers: The Trade-off between Market Power and Efficiency......Page 567 The Department of Justice and FTC Merger Guidelines......Page 569 Regulating Natural Monopolies......Page 571 Solved Problem 15.5: What Should Your College Charge for a MOOC?......Page 572 Conclusion......Page 573 Chapter Summary and Problems......Page 574 Walt Disney Discovers the Magic of Big Data......Page 581 Arbitrage......Page 583 Why Don’t All Firms Charge the Same Price?......Page 584 The Requirements for Successful Price Discrimination......Page 585 An Example of Price Discrimination......Page 586 Solved Problem 16.2: How Apple Uses Price Discrimination to Increase Profits......Page 587 Airlines: The Kings of Price Discrimination......Page 588 Apply the Concept: Big Data and the Rise of Dynamic Pricing......Page 589 Perfect Price Discrimination......Page 591 Price Discrimination across Time......Page 592 Odd Pricing: Why Is the Price $2.99 Instead of $3.00?......Page 594 Apply the Concept: Cost-Plus Pricing in the Publishing Industry......Page 595 How Can Using Two-Part Tariffs Increase a Firm’s Profit?......Page 596 Conclusion......Page 599 Chapter Summary and Problems......Page 600 Rio Tinto Mines with Robots......Page 605 The Marginal Revenue Product of Labor......Page 607 Solved Problem 17.1: Hiring Decisions by a Firm That Is a Price Maker......Page 609 Factors That Shift the Market Demand Curve for Labor......Page 610 17.2. The Supply of Labor......Page 611 Factors That Shift the Market Supply Curve of Labor......Page 612 17.3. Equilibrium in the Labor Market......Page 613 Apply the Concept: Is Investing in a College Education a Good Idea?......Page 614 The Effect of Immigration on the U.S. Labor Market......Page 615 Apply the Concept: Will You Compete with a Robot for a Job—Or Work with One?......Page 617 17.4. Explaining Differences in Wages......Page 620 Apply the Concept: Technology and the Earnings of “Superstars”......Page 621 Compensating Differentials......Page 622 Discrimination......Page 623 Solved Problem 17.4: Is Passing “Comparable Worth” Legislation a Good Way to Close the Gap between Men’s and Women’s Pay?......Page 624 Apply the Concept: Does Greg Have an Easier Time Finding a Job Than Jamal?......Page 626 17.5. Personnel Economics......Page 628 Should Workers’ Pay Depend on How Much They Work or on How Much They Produce?......Page 629 Apply the Concept: A Better Way to Sell Contact Lenses......Page 630 The Market for Capital......Page 631 The Market for Natural Resources......Page 632 Monopsony......Page 633 Conclusion......Page 634 Chapter Summary and Problems......Page 635 Should Your Small Business Be Taxed Like Apple?......Page 643 How Do We Know the Public Interest? Models of Voting......Page 645 Government Failure?......Page 647 18.2. The Tax System......Page 649 An Overview of the U.S. Tax System......Page 650 Progressive and Regressive Taxes......Page 651 Apply the Concept: Which Groups Pay the Most in Federal Taxes?......Page 652 International Comparison of Corporate Income Taxes......Page 653 Evaluating Taxes......Page 654 18.3. Tax Incidence Revisited: The Effect of Price Elasticity......Page 657 Apply the Concept: Do Corporations Really Bear the Burden of the Federal Corporate Income Tax?......Page 658 Solved Problem 18.3: The Effect of Price Elasticity on the Excess Burden of a Tax......Page 659 Measuring the Income Distribution and Measuring Poverty......Page 660 Showing the Income Distribution with a Lorenz Curve......Page 662 Problems in Measuring Poverty and the Distribution of Income......Page 663 Solved Problem 18.4: What’s the Difference between Income Mobility and Income Inequality?......Page 664 Explaining Income Inequality......Page 666 Policies to Reduce Income Inequality......Page 667 Apply the Concept: Who Are the 1 Percent, and How Do They Earn Their Incomes?......Page 669 Income Distribution and Poverty around the World......Page 670 Conclusion......Page 672 Chapter Summary and Problems......Page 673 Glossary......Page 680 Company Index......Page 685 Subject Index......Page 687 Credits......Page 702 The third generation of solar cells includes those based on semiconductor quantum dots. 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The book can be recommended for a broad audience of chemists, electrical engineers, and materials scientists, and is suitable for use in courses on materials and device design for advanced and future optoelectronics. Features comprehensive coverage of novel technologies for quantum dot solar cells Written by leading experts in the corresponding research areas Supplies the keys to understanding the latest technologies for third-generation solar cells Provides a foundation for future research in materials and optoelectronics for energy applications