This thoroughly accessible textbook shows students how microeconomic theory can be used and applied to major issues of public policy. In this way, it will improve their understanding of both microeconomic theory and policy and also develop their ability to critically assess them. Clem Tisdell and Keith Hartley have expanded upon their previous successful work on microeconomics. As a result, this new book is considerably updated with substantial chapter revisions, as well as new chapters dealing with business management, ownership, environmental issues, public choice, defence, conflict and terrorism. Promoting a thorough understanding of this complex yet fundamental topic, "Microeconomic Policy: A New Perspective" will undoubtedly prove an invaluable textbook for all students, academics and researchers of economics and public policy.
Pt. A The Methodology of Microeconomic Policy
1 How do economists approach microeconomic policy? 3
2 Why do governments need microeconomic policies? 16
3 Relevance to business management of microeconomics and microeconomic policy 44
Pt. B Demand, Supply, Markets and Policy
4 Competitive markets and price regulation 61
5 Consumers and policy 91
6 Costs, supply and policy 125
Pt. C Imperfect Markets
7 The behaviour of firms 157
8 Monopoly: Consequences, regulation and prevention 190
9 Oligopoly and policy-making 223
10 Ownership of enterprises: Public or private? 254
Pt. C Factor Markets and Policy
11 Labour markets 269
12 Human capital and social policy 293
13 Trade unions 313
Pt. E Public Choice
14 Do votes determine policies? A public choice perspective on policy 339
15 The contract state 373
Pt. F Global Applications
16 The state of the environment and the availability of natural resources 399
17 Defence, disarmament and conflict 422