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MICROECONOMICS

MICROECONOMICS

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1 Preliminaries 3 1.1 The Themes of Microeconomics 4 Trade-Offs 4 Prices and Markets 5 Theories and Models 5 Positive versus Normative Analysis 6 1.2 What Is a Market? 7 Competitive versus Noncompetitive Markets 8 Market Price 8 Market Definition—The Extent of a Market 9 1.3 Real versus Nominal Prices 12 1.4 Why Study Microeconomics? 16

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