The main focus of this book is the presentation of a clear and uncluttered discussion centered narrowly on the basic theoretical ideas, arguments, and interrelationships that constitute the traditional explanation of the workings of the perfectly competitive microeconomy, along with a few examples of market failures to account for more realistic microeconomic circumstance. Many details and asides that appear in standard textbooks are omitted. Discussion is set in the context of a world with two final goods, two persons, two firms, and two inputs or resources and is often phrased in reference to graphs. There is no game theory and no discussions of uncertainty and behavioral economics. Nor are there any applications. Only a few examples, usually abstract, illustrate theoretical ideas. Topical coverage includes the theory of the consumer, the theory of the firm, the theory of markets, general equilibrium, welfare, monopoly, monopolistic competition, oligopoly, externalities, and public goods.

The third edition of this book differs from the first two only in that it continues the process of correcting errors, filling in gaps in reasoning, and clarifying arguments.