Part 2 book “Microeconomics” has contents: Perfectly competitive markets, competitive markets - applications, monopoly and monopsony, capturing surplus, market structure and competition, game theory and strategic behavior, risk and information, general equilibrium theory, externalities and public goods. | 9 7/23/10 11:40 AM Page 327 PERFECTLY COMPETITIVE MARKETS W H AT I S P E R F E C T C O M P E T I T I O N ? APPLICATION Perfectly Competitive Catfish Farming P R O F I T M A X I M I Z AT I O N B Y A P R I C E - TA K I N G F I R M APPLICATION Wealth Creators and Wealth Destroyers H OW T H E M A R K E T P R I C E I S D E T E R M I N E D : S H O RT- RU N EQUILIBRIUM APPLICATION APPLICATION Shutting Down an Oil Rig How Much Corn at Which Price? APPLICATION How Much Copper at Which Price? Growing Perfectly Competitive Roses APPLICATION H OW T H E M A R K E T P R I C E I S D E T E R M I N E D : L O N G - RU N EQUILIBRIUM APPLICATION When the Supertanker Market Sank The . Ethanol Industry and the Price of Corn APPLICATION ECONOMIC RENT AND PRODUCER SURPLUS APPLICATION Mining Copper for Profit APPENDIX P R O F I T M A X I M I Z AT I O N I M P L I E S C O S T M I N I M I Z AT I O N 327 7/23/10 11:40 AM Page 328 A Rose Is a Rose Is a Rose Nevado Ecuador SA is a producer of fresh-cut roses located about 140 kilometers south of Quito, Ecuador’s warm days, cool nights, dry air, rich volcanic soil, and most of all, abundant and intense sunlight, make it a near-perfect location for growing tall, bountiful roses. Perhaps not surprisingly, as the fresh-cut rose market has globalized in the last two decades, the country of Ecuador has emerged as one of the world’s leading suppliers of fresh-cut roses in the world. Of the nearly billion roses bought annually by . households, nearly 400 million came from Ecuador, a quantity exceeded only by Colombia (which ships about 900 million roses to the United States annually). In an industry that has come under scrutiny from human rights activists who have called attention to the use of child labor and the dangerous work conditions on rose plantations created by the
