Ricardo’s famous comparative-advantage trade theory was built upon a production possibility curve (PPC), which contains only one input. Pareto tried to surpass Ricardo by developing a two-input PPC, referred to as the contract curve or Pareto optimality. However, when the two groups of isoquants do not contact each other, they do not form a contract curve. When the only contact point is unstable, the whole contract curve crumbles. Pareto’s misunderstanding of the meaning of isoquant and op...

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.

David Ricardo developed the production possibility curve (PPC) to formulate his comparative advantage theory and explain international trade. However, when the PPC becomes concave, his theory collapses. The initially lower relative price associated with specialization suddenly becomes higher, while the newly chosen trade option is again more expensive. This book proves that PPC is merely another expression of production functions, so it cannot derive any trade-related theories.

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...

You have probably heard of Ricardo’s rent theory, which is a perpendicular line. You may also have heard of the rent gradient function, which is a negative curve. So, which one is the correct rent theory? People may choose to live away from city center because of the lower rent, but why is city center still so crowded? Why do developers construct higher buildings in suburb where rent is lowest? All these questions can only be answered, after the introduction of the spatial variable into ur...

Frank Ramsey seemed like a mysterious person. He was a mathematics, but was enlisted by JM Keynes to conduct economic research. His growth paper looked very difficult, but perhaps because it was full of errors. For example, he tried too many objectives, sometimes saving, sometimes consumption, sometimes bliss. Economic growth theory has been stagnant for a long time, perhaps he should bear the great part of the responsibility.

Marginalism advocates using mathematics to tackle economic problems. This book points out that marginalist mathematics is incomplete, and thus leads to various suspicious, paradoxical, and wrong theories. For example, it claims that raising marginal productivity increases profit, that marginal cost pricing is Pareto optimal and an effective policy to regulate monopoly, that lazier workers should get higher pay, that population should be killed to raise economic growth, and that punishment ...

What is marketing? According to McCarthy, it is about 4P. This book proves that only 3P’s are effective.The first P is price, but most scholars recommend only price reduction. This paper proves that sometimes price increase is the right move.The second P is place. This book is the only one to make use of this variable for more profit.The third P is product. This book proves that when you can introduce new product, that is the best P.This book objects governm...

Is road the same as traffic? Up till now, economics has treated road and traffic as one. Instead, this book handles them separately, but the two are linked together by a key element: toll, even a zero one. Is road private or public? This book shows that the distinction is not so simple. This book covers 3 road-or-traffic economists and connects their piecemeal writings to form a complete theory of road and traffic. This book detests all the existing notions of toll, especially congestion t...

Merger & Acquisition can enlarge a business to take advantage of the so-called economies of scale, but there is another conspiracy. This book teaches you how to raid a company, poor or rich, and even your own company. But if you don’t want to be a raider, do you still buy or keep those stocks?

Modigliani and Miller (1958) advocated more borrowing for higher rate of return. This paper uses FinTech to update their theorem. It also proves that FinTech’s multiplier is more magical than the deposit one.

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...