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The Power of Microeconomics: Economic Principles in the Real World

Approx. 15 hours to complete

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Course Summary

Learn about the principles of microeconomics and how they apply to real-world situations in this course. Gain an understanding of how individuals and businesses make decisions and how markets function.

Key Learning Points

Understand the basics of supply and demand and how they affect pricing in markets
Learn about different market structures and how they impact competition
Explore the role of government intervention in markets and its effects on economic outcomes

Job Positions & Salaries of people who have taken this course might have

- USA: $70,000 - $120,000
- India: INR 6,00,000 - INR 16,00,000
- Spain: €25,000 - €50,000
- USA: $70,000 - $120,000
- India: INR 6,00,000 - INR 16,00,000
- Spain: €25,000 - €50,000
- USA: $50,000 - $100,000
- India: INR 3,00,000 - INR 10,00,000
- Spain: €20,000 - €40,000
- USA: $70,000 - $120,000
- India: INR 6,00,000 - INR 16,00,000
- Spain: €25,000 - €50,000
- USA: $50,000 - $100,000
- India: INR 3,00,000 - INR 10,00,000
- Spain: €20,000 - €40,000
- USA: $70,000 - $150,000
- India: INR 7,00,000 - INR 20,00,000
- Spain: €30,000 - €60,000

Learning Outcomes

Develop an understanding of how individuals and businesses make decisions in a market economy
Gain knowledge of different market structures and their impact on competition
Learn about the role of government intervention in markets and its effects on economic outcomes

Prerequisites or good to have knowledge before taking this course

Basic understanding of high school-level math
Familiarity with basic economic concepts

Course Difficulty Level

Beginner

Course Format

Online
Self-paced

Similar Courses

Principles of Macroeconomics
Behavioral Economics in Action

Related Education Paths

Related Books

Description

In this course, you will learn all of the major principles of microeconomics normally taught in a quarter or semester course to college undergraduates or MBA students.

Perhaps more importantly, you will also learn how to apply these principles to a wide variety of real world situations in both your personal and professional lives. In this way, the Power of Microeconomics will help you prosper in an increasingly competitive environment. Note that this course is a companion to the Power of Macroeconomics. If you take both courses, you will learn all of the major principles normally taught in a year-long introductory economics college course.

Outline

Welcome
An Introduction to Microeconomics
Syllabus
Check Your Economics Knowledge (Ungraded)

An Introduction to Microeconomics
Microeconomics Defined and Three Questions Every Economy Must Answer
The Production Possibility Frontier and Opportunity Costs
The Fundamental Concepts of Microeconomics and Course Overview
Other Reasons for Government Regulation
An Overview of Land, Labor, and Capital Markets; Externalities and Public Goods
Module Overview
An Introduction to Microeconomics

Supply, Demand and Equilibrium
The Law of Demand, Income/Substitution Effects, and Shift Factors
Change in Demand vs. Change in Quantity Demanded; The Market Demand and Supply Curves; Supply Curve Shift Factors
Equilibrium; Price Effects of Supply and Demand Curve Shifts; Price Controls and Floors
The Market Allocates Goods & Resources- What, For Whom, and How; Some Cool Examples
Module Overview
Supply, Demand and Equilibrium

Demand and Consumer Behavior
Consumer Choice and Utility Theory
Consumer Optimization and the Equimarginal Principle; Income and Substitution Effects
Demand Price Elasticity and its Determinants
Price Elasticity and Total Revenue
Module Overview
Demand and Consumer Behavior

Supply and Production Theory
Overview of Production Theory and the Production Function
Average, Marginal, Variable, and Total Costs; The Marginal Product and Law of Diminishing Return
Marginal Cost and Marginal Cost Pricing; The AFC, ATC, and AVC Curves
Long Run Cost Analysis and Economies of Scale
Diseconomies of Scale, Minimum Efficient Scale, and Natural Monopoly; The Structure-Conduct-Performance Paradigm
Accounting Versus Economic Profits; The Price Elasticity of Supply
Module Overview
Supply and Production Theory

Perfect Competition
Overview of Industry Structure, Conduct, and Performance
Assumptions of Perfect Competition; the P=MR Condition
Market Failures that Lead to Imperfect Competition; Externalities and the Public Goods Problem
Pricing and Production Rules; P=MR=MC; The Shutdown Rule
Long Run Equilibrium; Normal or Zero Economic Profits
Allocative vs. Productive Efficiency; Pareto Optimality; Consumer and Producer Surplus and Deadweight Loss
Module Overview
Perfect Competition

Monopoly and Monopolistic Competition
Why Study Imperfect Competition; Monopoly’s Pricing Rule
Regulating Monopolies and the P=AC Rule; X-efficiency Under Cost-Plus Pricing; Schumpeter Argument for Monopoly
Monopolistic Competition; Concentration Ratios; Mutual Dependence Recognized and Collusion
Comparing Monopolistic and Perfect Competition; Non-Price Competition and Product Differentiation
Module Overview
Monopoly and Monopolistic Competition

Oligopoly and Strategic Behavior
Oligopoly Defined and Sources of Oligopoly
Market Power and Strategic Interaction; Cooperative Versus Non-Cooperative Behavior; Explicit Collusion
Tacit Versus Explicit Collusion; Forms of Tacit Collusion; Models of Oligopoly Conduct
Joint Profit Maximization Model; Why Cartels Can Fail
The Price Leadership Model; The Kinked Demand Curve Model
Game Theory and the Prisoner’s Dilemma; The Nash Equilibrium
Module Overview
Oligopoly and Strategic Behavior

Land and Rent
Introduction to Land and Rent; Factor Prices
How Land is Priced; Rent Versus Economic Rent
The “Corn Wars” and Theory of Ricardian Rents; Property Rights
Henry George’s Single Tax Movement; Efficiency of a Land Tax
Determinants of the Price of Land and Rents; Rent Seeking
Module Overview
Land and Rent

The Labor Market and Wage Determination
What Determines the Wage Rate? Unions and “Company Towns”
The Derived Demand For Labor; The Marginal Productivity Theory of Resource Demand; The Profit Maximizing Rule; MRC=W
Productivity, Wages and Product Prices
Issues in Labor Force Participation; Substitution and Income Effects and the Backward Bending Curve; Immigration
Wages Under Differing Market Structures; Monopoly, Monopsony, and Labor Unions; Labor Immobility; Role of Unions
Factors Affecting Wage Differentials; Compensating Differentials; Quasi-Rents; Human Capital; Immobilities;, Non-Competing Groups
Module Overview
The Labor Market and Wage Determination

The Capital Market, Interest, and Profits
Capital Analysis in the Real World; Three Categories of Capital Goods; Interest Rate Defined; Rate of Return
Depreciation; Theory of Loanable Funds; Two Interest Rate Functions
How Shifts in Demand and Supply Affect Interest Rates; Investment Analysis Over Time; Net Present Value; Perpetuities
NPV In the Real World; NPV Equation
Real World Applications of NPV
Interest Rates In The Real World; Factors Determining Interest Rates
Module Overview
The Capital Market, Interest, and Profits

Public Goods and Externalities
Why Markets Fail and Government’s Role
Public Vs. Private Goods; Non-rival Consumption; Non-excludability; Free Rider Problem
Economic Efficiency and Public Goods; Market Demand for Public Goods
Benefit-Cost Analysis and the Decision Rule
Negative and Positive Externalities
Graphical Analysis of Externalities; Coase Theorem and Property Rights; Tort System
Direct Government Intervention; Pigouvian Taxes and Subsidies; Internalizing Externalities
Module Overview
Public Goods and Externalities

Final Exam
Learning Resources
Final Exam

Summary of User Reviews

Discover the principles of microeconomics in this popular online course on Coursera. Students praise the comprehensive content and engaging lectures that make learning economics accessible to all.

Key Aspect Users Liked About This Course

Comprehensive content

Pros from User Reviews

Engaging lectures
Easy to understand
Good for beginners
Excellent instructor
Great value

Cons from User Reviews

Some technical issues with video
Limited interaction with instructor
Not enough real-world examples
Too much emphasis on theory
Lack of challenging assignments

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