Firm Level Economics: Markets and Allocations

Go to Course: https://www.coursera.org/learn/firm-level-economics-markets

Introduction

### Course Review: Firm Level Economics: Markets and Allocations If you’re looking to gain a solid foundation in economic principles, particularly as they pertain to market behaviors and government interventions, then the Coursera course *Firm Level Economics: Markets and Allocations* is an excellent choice. This online course effectively combines theoretical concepts with practical applications, making it suitable for both beginners and those looking to refresh their understanding of firm-level economics. #### Course Overview The course begins with a clear premise: in markets, prices serve as rationing devices that dictate the allocation of resources between consumers and producers. By understanding how to construct demand and supply curves, you will gain insights into consumer behavior and producer decisions, respectively. The exploration of equilibrium pricing is not just theoretical; it’s essential for grappling with real-world economic scenarios. Additionally, the course delves into government interventions, examining their implications on market efficiencies and outcomes. #### Key Learning Outcomes Upon completion of this course, students will be able to: - Explain the dynamics of different market structures, including perfect competition, monopoly, and oligopoly. - Understand the implications of market failures and the conditions under which they occur. - Apply game theory to analyze strategic interactions in oligopoly markets. - Assess the efficiency of various market outcomes and the effects of government intervention. #### Course Structure The course is structured into four comprehensive modules: 1. **Course Orientation**: This initial module welcomes students and familiarizes them with the learning environment. It's a great starting point to ensure you’re comfortable with the tools and resources available throughout the course. 2. **Module 1: Perfect Competition**: Here, you will explore the fundamentals of perfectly competitive markets. This module sets the stage for understanding equilibrium outcomes both in the short run and long run, providing essential analysis tools for shocks to equilibria. 3. **Module 2: Monopoly Markets and Efficiency**: Transitioning from theory to application, this module introduces the concept of monopoly and evaluates its resource allocation through efficiency measures. Understanding the differences between competitive and monopolistic outcomes sharpens analytical skills. 4. **Module 3: Oligopoly and Game Theory**: This module is particularly engaging, as it confronts the complexities of markets dominated by a few large players. By applying game theory, students can model and predict outcomes in oligopolistic structures, which is crucial for any aspiring economist. 5. **Module 4: Market Failures**: The final module tackles market failures, highlighting situations where resource allocation is inefficient despite the presence of well-functioning markets. The exploration of externalities and information issues will deepen your understanding of market dynamics and governmental roles. #### Recommendations *Firm Level Economics: Markets and Allocations* is highly recommended for anyone interested in economics, business, or public policy. Whether you are a student, a professional looking to brush up on your knowledge, or even a policy-maker, this course equips you with the necessary analytical tools. The content is well-organized, and the practical implications of each topic enable a smooth transition from theory to real-world applications. The course is supported by interactive assessments and peer discussions, enhancing the overall learning experience. You’ll find yourself part of a community of fellow learners, creating an enriching environment through the exchange of ideas. In conclusion, if you’re eager to understand how markets operate at a foundational level and appreciate the nuances of economic principles, do not miss out on *Firm Level Economics: Markets and Allocations* on Coursera. It promises to elevate your understanding and application of economic concepts in various contexts, ensuring you are well-prepared for the challenges of today’s complex economic landscape.

Syllabus

Course Orientation

You will become familiar with the course, your classmates, and our learning environment. The orientation will also help you obtain the technical skills required for the course.

This module introduces the concept of a perfectly competitive market. It is a benchmark construction, but it accurately models many markets in our economy. We will understand equilibrium outcomes in both the short run and the long run. We will understand how to analyze shocks to these equilibria.

Analysts can predict equilibrium outcomes with some degree of certainty. We want to construct a measure of efficiency that will allow us to evaluate the attractiveness of these equilibrium market outcomes. After using this metric to consider the efficiency of the competitive market, we will introduce a different market structure, monopoly, and use our efficiency metric to evaluate the equilibrium resource allocation under monopoly.

Perfectly competitive markets have many sellers. Monopoly has one seller. But much economic activity takes place in markets with just a handful of very large producers. These are called oligopoly markets. We will look at collusive arrangements among a small number of rivals, and then will use simple game theoretic techniques to model equilibrium.

Sometimes even markets that appear to be capable of great efficiency in resource allocation, such as the perfectly competitive market, can fall short of efficiency. Economists call this market failure. In this module, we will consider information issues and the impact on efficiency. We will also introduce externalities (spillovers) such as pollution and model these impacts.