Up till now, Economics is written in p-q 2 dimensions. This book includes the space variable and makes Economics 3-dimensional. It then overhauls all economic theories, especially the competition theories: monopoly demand is more elastic, colluded duopoly covers the whole market; kinked demand is redundant; etc.This book is suitable for courses like Microeconomics, Customer Relation Management, Industrial Organisation, etc.

Utility companies are monopolistic, but they must produce at full capacity. Therefore, they are unable to pursue maximum profits by textbook standards. Also, when faced with peak and off-season demand, many ot them choose to implement price differentiation. Were it not for their exclusive position, such behavior would be self-destructive. This book devises a simple utility pricing policy that allows full capacity production, prevents bankruptcies, regulates peak and off-peak demand, and en...

Lagrange calculus claims to be capable of solving consumption and production problems. Although it does derive a negative input-demand relationship, this book points out that the results are inconsistent with the pre-ordered output or input, and cannot ensure output maximization or cost minimization. This book further proves that simple algebra or geometry can produce the desired results, making this kind of calculus completely redundant. Finally, this book proves that Lagrange calculus is...

Ronald Jones uses two quantity equations to solve for a quantity equilibrium, and two price equations to solve for a price equilibrium. From these two price and quantity equilibria, he claims to achieve a country’s general equilibrium. Furthermore, with two unrelated country equilibria, he claims to achieve trade equilibrium. That is an ambition too large.

What is business cycle? It is economic forecast. Forecasting is fortune telling; it is superstition; it is not science. This book reveals the true face of several great economic forecast models.

Bertil Ohlin was dissatisfied with Ricardo’s use of only labor to explain international trade, so he introduced other inputs, such as land. In place of comparative advantage, he used input abundance and intensity to explain trade. Jones, Kemp, and Rybczynski tried to interpret factor abundance and intensity using Ricardo’s production possibility curve (PPC). Naturally, they ended up with the same comparative advantage conclusion. In addition, they overlooked a fundamental deficiency of the...

This book reproduces and corrects Hotelling’s “Stability in Competition”. His setup is contradictory and incomplete: he uses monopoly theory to explain competition, and fails to include production cost. This book introduces supply function to the two competitive firms, to come to the same stability conclusion. It also disproves Hotelling’s exploitation strategy, and offers a more profitable alternative.

Pareto’s contract curve is a geometric concept; consequently, many textbooks supplement it with mathematical justification. This booklet disproves such mathematics. It argues that treating two antagonistic firms as a single entity is flawed, and that maximizing an ever-increasing objective can never yield a solution. Furthermore, this paper clarifies that output is a third-dimensional measure; therefore, all attempts to find a solution using a two-dimensional Edgeworth box are either incor...

Pareto's contract curve is a geometric concept. This booklet disproves it geometrically. There are two conditions for its existence: the Edgeworth Box must be a square, and the isoquants must be symmetric. Since upholding both conditions simultaneously is impossible, existing contract curves are fabrications.

The most glaring failure of economists is surely their inability to derive a positive labor supply curve. What they have obtained so far is a hybrid one with backward-bending slopes. This book disproves the bend, so that such a supply relation can only be negative, and further reveals how the abnormal supply is flawed. Instead, this book proves that the relation actually describes the negative cross-demand for labor. Subsequently, this book also defines cross-demand relation for capital, a...

James E. Meade employed geometry to explain international trade. In particular, he developed the so-called trade indifference curve. This book proves that his result is actually no-trade indifference curves, and that change between such curves implies negative trade. When it cannot derive any correct offer curve, Meade’s geometry cannot explain international trade either.

Consider an ore mine owned by A, and a manufacturer, B, that requires ore. Initially, A and B cooperate competitively. Subsequently, Robinson urges A to charge B a higher monopoly price to obtain some extra profit. In response, Bowley urges B to pay A only the lower monopsony price to obtain some other extra profit. Finally, Bowley suggests that A and B form a bilateral monopoly to split a bigger extra profit. This book proves that ‘bigger extra profit' is not a net gain and may even resul...