Microeconomics as a Second Language


The serious message for marketing is that this is a textbook-agnostic supplement to Principles of Microeconomics written by an experienced professor who has taught this course to undergraduates at Berkeley for more than 10 years. Professor Olney incorporates her insights and experience in the classroom into this excellent text or supplement for all students interested in learning the key principles of Microeconomics.

This could be used for the Principles course or as a supplement for any course in which students need a refresher.

Chapter 1: Economics Tools – Math and Graphing.

Introduction to Economics.

Economic Models.

Mathematical Tools.



Chapter 2: Production Possibilities Frontier, Economic Growth, and Gains from Trade.

The Production Possibilities Frontier.

Economic Growth.

Gains from Trade.

Chapter 3: Demand and Supply.

Overview of Model of Demand and Supply.




Changes of Equilibrium.

Chapter 4: Extensions of the Demand and Supply Model.

Price Floors and Price Ceilings.

Excise Taxes.


Consumer and Producer Surplus.

Deadweight Loss of a Tax.

Chapter 5: Consumer Theory.

Utility Maximization.

Budget Constraint.

Indifference Curves.

Consumer Equilibrium and the Demand Curve.

Income and Substitution Effects.

Chapter 6: Perfectly Competitive Firms.

Production and Profit Maximization.

Product Curves, Cost Curves, and Profit Maximization.

Long-Run Average Cost.

Maximizing Profit.

Types of Industries.


Shut Down or Produce?

In the Long Run, Economic Profit Equals Zero.

Chapter 7: Imperfect Competition.


Monopolistic Competition.


Chapter 8: Market Failure: Externalities and Public Goods.


A Graphical Approach: Negative Externality.

A Graphical Approach: Positive Externality.

Avoiding Government Intervention: The Coase Theorem.

Public Goods.

Chapter 9: Factor Markets.

Labor Markets.

Labor Supply.

Labor Demand.

Labor Market Equilibrium.

Changes of Labor Market Equilibrium.

Misuse of the Labor Market Model.

Land Markets.

Markets for Physical Capital.