730 Bierman, H. S., 402, 417, 559, 560–562, 586, 592, 595, 609, 619, 685 Black market, 131, 138 Blank, L. T., 549 Blinder, A. S., 144 Block pricing, 425–431, 474, 476 Boulding, K. E., 144 Boyes, W., 41 Brams, S., •• Break-even price, 324, 328, 330, 351 Brennan, M. J., 41, 97, 232, 264, 309, 358 Brigham. E. F., 526, 550, 641, 685 Brue, S. L., 194 Business cycle, 14, 35 Buyer’s reservation price, 602
-CCapital asset pricing model, 645–648, 679 Capital budgeting, 485–488, 507, 511n, 538, 541–542 Capital market line, 637–641, 680 Capital rationing, 537–538, 542 CAPM (See capital asset pricing model) Carroll, T. M., 41, 97, 232, 264, 309, 358 Cartel, 402–403, 409, 411 Case, K. E., 7, 41, 144, 358, 417 Cash flow, 488–517, 521–526, 529–532, 534–535, 537, 541–543 abnormal, 530–532, 542 diagram, 488–492, 494, 496, 498–499, 502–505, 542 discounted, 500, 509–510, 543 normal, 530–532, 543 operating (See also Cash flow) Categories of capital budgeting projects: capital expansion, 486, 541 mandated investments, 486–487 miscellaneous investments, 486–487 new or improved product lines, 486, 487 replacement, 486–487, 541 Celler-Kefauver Act, 383, 691, 694–695 Certainty-equivalent approach, 643–645, 678, 680 Certainty equivalent coefficient, 644–645, 678, 680 Certainty line, 669–670 Ceteris paribus, 6, 35 Chamberlin, E., 360, 373, 377, 401, 417 Cheating rule finitely repeated games with a certain end, 583–586
Index finitely repeated games with an uncertain end, 582–583 infinitely repeated games, 575–578, 610 Chew, I. K., 511n Chiang, A., 50, 97, 309 Chiu, J. S. Y., 41 Clayton Act, 382–383, 692–695 Clemens, E., 483 Coase, R., 21, 41, 705, 727 Coase theorem, 704–707, 722–723 Cobb, P. H., 232 Cobb-Douglas production function, 198–202, 204–208, 217, 219–228 Coefficient of optimism, 662–663, 679 Coefficient of variation, 627, 678, 680 Collusion, 350–352, 379, 383, 402–403, 408, 411–413, 569, 572–580, 589 explicit versus tacit, 579–580 Commodity bundling, 425, 431–434, 449, 476 Common ratio of a geometric progression, 56 Common stock, 539–540, 542, 544 Comparing net present value and internal rate of return, 523–529 Complementary goods, 184, 187–189 Complete ignorance, 622, 623, 656–664, 678–681 Compounding, 488–494, 497–501, 504, 542 Concentration ratio, 383–385, 410–412 Conglomerate merger, 694, 724 Constant returns to scale, 200, 218–221, 224, 226–227, 250, 252–253, 259–260 Constrained optimization, 84 Lagrange multiplier method, 86–88, 97, 297–299 substitution method, 84–86, 97, 296–297 Consumer deadweight loss, 345–346, 352, 697, 699–700, 722–723 Consumer surplus, 342–349, 352, 420–434, 472–473, 476–479, 688–689, 690, 696, 719–723 Consumer sovereignty, 9 Consumption efficiency, 15, 35, 36 Continuous function, 62 Cooley, R. L., 511n Cooperative game (See also Collusion), 558, 568–586, 588, 609–610 Cost average fixed, 238–247, 260 average total, 237–247, 252–255, 259– 261 average variable, 237–247, 259–260
