Errata
5 | Trade
p.30: Footnote 4. Jacobs (1970, p.7). Jane Jacobs (1970) The Economy of Cities, New York: Random House p. 7.
9 | Value
p.46: "So, obviously he would pay a lot more than $14 for that. an item that he could immediately resell for 14 million."
p. 49: "But your tradeoffs don’t end there. You will also have to consider the cost of the bus ride, and what you think the bus ride is worth in the first place. Have you already purchased a bus pass for the month? Suppose you have already paid $20 for a monthly bus pass. In that case, the total cost of riding the bus this month is $12 $20, but the marginal cost of riding the bus on this par- ticular day is zero. You paid $20 for the month, but you don’t pay any more for riding the bus on this particular day."
19 | Sellers
p. 120: "This is true even for operations that have a 'not-for-profit' status."
21 | A Market Responds: Price and Quantity
pp. 131-132“If the price of a related good (substitute or complement) on the consumer side changes, it will shift the demand curve. If income, tastes, or expectations, or the number of buyers change, it will shift the demand curve.
25 | Economic Science: Putting Theory to the Test
p. 145 "So why do Western nations tend (although not without exceptions) to shy away from sweeping systems of wage and price controls?
28 | Cost to Bystanders
p. 161: When we introduce negative externalities (external cost) in the supply and demand framework, we need to reconstruct demand or supply curves so that they accurately reflect the cost to whole communities.
P. 163: "A tax on the producer shifts the supply curve in the same direction as the Marginal SC Social MC curve. A tax on the consumer shifts the demand curve in the same direction as the Marginal SB Social MB curve."
29 | Competitors Are Not Bystanders
p. 166, line 5: period missing. "...but they are not externalities at all. They are not external costs."
31 | Environmental Tragedies
p. 176: "There are ways to take what we find in the commons and preserve it—to put it in a time capsule—but before we can put something in a time capsule, we have to appropriate it, meaning that whale- oil consumption in we have to claim it as our property, which means we have to claim a right to decide what to do with it."
34 | Communal Property
p. 191: People will cooperate because they had have no choice.
35 | Trust
p. 195: "assumption that they can afford"
36 | Benefits for Bystanders
p. 201: "If a positive externality occurs on the production side, it means that the true cost to society of producing a service is lower than what firms consider to be the cost of production."
p. 203: “A subsidy for the production or the consumption of the good would increase the amount traded and decrease the price paid by consumers”.
47 | Measuring the Price Level
p. 235 (the formula): four lines up from bottom: item 2 - item 1
57 | Break-Even Analysis
p. 284: 0 = (p × q) − [(vc × q) + f]
67 | Creating Markets
p. 323: space missing in line 1 of the last paragraph: "change.Ask" should be "change. Ask"
68 | Competitive Advantage: The Dynamics of Remaining Viable
p. 327: "Firms that find themselves in the upper left area of the matrix need drastic strategic and operational revival..."
"Firms in the lower right area of the matrix are in a sort of ideal or nirvana situation but need to protect that position...."