If you’ve read and understood this book, you should know how to:
Use the rational-actor paradigm, identify problems, and then fix them.
Use benefit-cost analysis to evaluate decisions.
Use marginal analysis to make extent (how much) decisions.
Make profitable investment and shut-down decisions.
Set optimal prices and price discriminate.
Predict industry-level changes using demand and supply analysis.
Understand the long-run forces that erode profitability.