Includes index.

Contents: Thinking like an economist -- Supply and demand -- Rational consumer choice -- Individual and market demand -- Applications of rational choice and demand theories -- The Economics of information and choice under uncertainty -- Explaining tastes: The Importance of altruism and other nonegoistic behaviour -- Cognitive limitations and consumer behaviour -- The Theory of the firm and market structures -- Costs -- Perfect competition -- Monopoly -- Oligopoly and monopolistic competition -- Labour -- Capital -- General equilibrium and market efficiency -- Externalities, property rights and the Coase theorem -- Government -- Appendices: Appendix 3: The Utility function approach to the consumer budgeting problem -- Appendix 4: Additional topics in demand theory -- Appendix 5: Additional applications of rational choice and demand theories -- Appendix 6: Search theory and the winner's curse -- Appendix 9: Mathematical extensions of production theory -- Appendix 10: Mathematical extensions of the theory of costs -- Appendix 13: Additional models of oligopoly and monopolistic competition -- Appendix 14: Labour -- Appendix 15: A More detailed look at renewable and exhaustible resource allocation.