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The Power of Markets II: Market Structure and Firm Behavior

Approx. 8 hours to complete

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Description

In order to maximize profits, firms must ensure that any given output level is produced at least cost and then select the price-output combination that results in total revenue exceeding total cost by the greatest amount possible. With this in mind, this second module of the Power of Markets course addresses how firms can most effectively convert inputs into final output and then covers determining the best price-output combination for a firm and how this varies depending on whether the firm is operating in a perfectly competitive or imperfectly competitive market setting.

Outline

Week 5 - Production
Production in the Short Run
Total, Average, and Marginal Product Curves
The Law of Diminishing Marginal Returns
Production in the Long Run
Trading Off Inputs in Production
Returns to Scale
Short-run Cost of Production
The Relationship Between Cost Curves
Week 5 Quiz

Week 6 - Cost Minimization
Marginal-Average Cost Relationships
The Golden Rule of Cost Minimization
Applying the Golden Rule of Cost Minimization
Long Run Cost Curves
The Importance of Cost Curves to Market Structure and Efforts to Abate Pollution
Perfect Competition: Key Assumptions
Short-run Profit Maximization
The Competitive Firm’s Short-Run Supply Curve and the Shutdown Condition
Output Response to Input Price Changes
Week 6 Quiz

Week 7 - Profit Maximization in Perfectly Competitive Markets
Short-run Competitive Equilibrium
Long-run Competitive Equilibrium
The Long-run Industry Supply Curve
Key Points About the Long-run Industry Supply Curve
Producer Surplus
Competition Maximizes Total Surplus
Who Bears the Burden of Excise Taxes?
The Deadweight Loss of Excise Taxes
City Taxicab Markets
The Net Gains From Trade
Week 7 Quiz

Week 8 - Monopoly Power: Its Sources and How to Use It
Monopoly: An Introduction
Monopoly and Profit Maximization
Monopoly Price and Its Relationship to Elasticity of Demand
Further Implications of Monopoly Analysis
The Measurement and Sources of Monopoly Power
The Sources of Monopoly Power
The Efficiency Effects of Monopoly
Public Policy Toward Monopoly
Price Discrimination
Three Necessary Conditions for Price Discrimination
Week 8 Quiz

Summary of User Reviews

Discover the principles of market structure with this course on Coursera. Users have praised the course for its comprehensive approach, insightful lectures, and engaging assignments. One key aspect that many users found good is the course's interactive nature that allows learners to apply concepts learned in real-world scenarios.

Pros from User Reviews

Comprehensive approach to market structure
Insightful lectures with real-world examples
Engaging and interactive assignments

Cons from User Reviews

Some users found the course to be too basic
Limited interaction with instructors
Some technical issues reported with the platform

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