A comprehensive study of microeconomics, this text includes in-depth coverage of game theory, internal organization of the firm, and entry prevention. Real-world applications and in-class experiments are used throughout the book. The organization of the text is such that the market is introduced first before perfect competition which is then seen as the limit of process of entry. Subjects new to this edition include: auctions; dynamic programming; optimal search; optimal contract theory in a principal-agent context; and affirmative action.