Advanced Microeconomic Theory (3rd Edition) 2011

GEOFFREY A. JEHLE PHILIP J. RENY

ADVANCED MICROECONOMIC THEORY

THIRD EDITION

Advanced Microeconomic Theory

We work with leading authors to develop the strongest educational materials in economics, bringing cutting-edge thinking and best learning practice to a global market. Under a range of well-known imprints, including Financial Times Prentice Hall, we craft high quality print and electronic publications that help readers to understand and apply their content, whether studying or at work. To find out more about the complete range of our publishing, please visit us on the World Wide Web at: www.pearsoned.co.uk.

Advanced Microeconomic Theory

THIRD EDITION

G E O F F R E Y A. J E H L E

Vassar College

P H I L I P J. R E N Y

University of Chicago

Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk First published 2011 c Geoffrey A. Jehle and Philip J. Reny 2011 The rights of Geoffrey A. Jehle and Philip J. Reny to be identified as author of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS. ISBN: 978-0-273-73191-7 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data A catalog record for this book is available from the Library of Congress 10 9 8 7 6 5 4 3 2 1 14 13 12 11 Typeset in 10/12 pt and Times-Roman by 75 Printed and bound in Great...