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This book integrates real-world "widget-free" examples throughout and uses extended applications to show students that economic theory has practical, problem-solving uses, and that it is not just an empty academic exercise.

Students using Perloff are exposed to modern theories-such as industrial organization theories, game theory, transaction cost theory, information theory and contract theory-and benefit from the author's step-by-step approach to problem solving that demonstrates how microeconomic theory is used to solve economic problems and analyze policy issues.