117 end-of section applications illustrate the versatility of microeconomic theory. Most are new or have been revised for this edition and focus on diverse topics such as the derivation of an isoquant for semiconductors using actual data, the amount by which recipients value Christmas presents relative to the cost to gift givers, why oil companies that use fracking are more likely to shut down, and whether buying flight insurance makes sense. 744 end of chapter exercises. Real-World Examples, which use real people, real companies, and real data to illustrate basic microeconomic theory, provide students with a practical perspective that showcases the versatility of modern microeconomics. Examples include monopoly theory as it is applied to a patented pharmaceutical, Botox; oligopoly theories used to analyse the rivalry between Coke and Pepsi, and between United Airlines and American Airlines on the Chicago - Los Angeles route; Apple's monopoly pricing of iPads; and multimarket price discrimination through the use of data on how Warner Brothers sets prices for Harry Potter and the Deathly Hallows Part 2 DVD across countries. 111 Challenges and Solved Problems.. Solved Problems provide students with a step-­by­-step model for working out qualitative and quantitative problems using algebra and calculus. Students get the opportunity to practice the method modelled in a series of related exercises at the end of the chapter. Challenges combine an Application and a Solved Problem. Each chapter (besides Chapter 1) begins with a Challenge, which discusses a real­-world issue, and concludes with one or more questions based on that discussion. At the end of the chapter, a Challenge Solution answers these questions.