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This book is different from the first edition. There are three entirely new chapters: 2,6 and 9. I have also included new sections in chapters 1,4 and 8. Moreover, the remaining chapters, 3, 5 and 7, have been revised and updated. In chapters 2 and 6 I felt it was necessary to include the main alternative theories ofconsumer and company behaviour along with the neoclassical models. The book contains four chapters oftheory 1, 2, 5 and 6 and four chapters with theoretical and empirical applications 3, 4, 7 and 8. Finally, chapter nine looks at choices made under conditions ofuncertainty. September 2002 P. CotoMillan Preface to the First Edition Grateful acknowledgment is made to CICYT (Comision Interministerial de Ciencia y Tecnologia), National Plan R+D, Projects NTXT962467 and N TXT981453 for its fmancial support. This text presents the economic theories on Utility and Production. In addition, such theories are used to explain the real problems of consumers and fIrms and several studies carried out by the author are displayed. Some collaboration by other professors of Economics is mentioned in the corresponding footnotes. The responsibility for errors and omissions, however, rests entirely upon the author. In chapters 1 and 4 of the book I try to present the theory of Utility and Production. Chapter 3 presents new functional forms and two empirical applications, on demand functions and systems. In chapters 2 and 5, the main theorems and properties presented in chapters 1 and 4 are applied.
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