About this Course

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Perfect markets achieve efficiency: maximizing total surplus generated. But real markets are imperfect. In this course we will explore a set of market imperfections to understand why they fail and to explore possible remedies including as antitrust policy, regulation, government intervention. Examples are taken from everyday life, from goods and services that we all purchase and use. We will apply the theory to current events and policy debates through weekly exercises. These will empower you to be an educated, critical thinker who can understand, analyze and evaluate market outcomes.

Flexible deadlines

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Shareable Certificate

Earn a Certificate upon completion

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Coursera Labs

Includes hands on learning projects.

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Approx. 12 hours to complete

English

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Skills you will gain

Externality
Economics
Microeconomics
Market (Economics)

Flexible deadlines

Reset deadlines in accordance to your schedule.

Shareable Certificate

Earn a Certificate upon completion

100% online

Start instantly and learn at your own schedule.

Coursera Labs

Includes hands on learning projects.

Learn more about Coursera Labs

Approx. 12 hours to complete

English

Could your company benefit from training employees on in-demand skills?

Try Coursera for Business

Instructor

Instructor rating

4.77/5 (82 Ratings)

Rebecca Stein

Syllabus - What you will learn from this course

Content Rating96%(1,865 ratings)

Week1

Week 1

3 hours to complete

Costs and Profits + Perfect Competition

In the first part of the course we learnt that if we allow market forces to work we reach an efficient outcome: the maximum benefit that can be generated by a market. The second part of the course explores cases where the markets fail to accomplish our goals. This week sets up the benchmark case of the perfectly competitive market: a model we will modify in the next few weeks. We define Perfect Competition, learn to model it graphically and discuss some key results in terms of long run profits and implications for efficiency.

3 hours to complete

20 videos (Total 45 min), 1 reading, 3 quizzes

20 videos

1.1.0: When Markets Fail: Introduction1m1.1.1: Defining Profits1m1.1.2: Defining Fixed Costs and Variable Costs2m1.1.3: Marginal Productivity2m1.1.4: Marginal Productivity: Definition1m1.1.5: Marginal Cost1m1.1.6: Average Cost2m1.1.7: Graph of Marginal and Average Cost Curves1m1.2.1: Perfect Competition: Definition5m1.2.2: Profit Maximization Perfect Competition2m1.2.3: Profit Maximization: MR=MC3m1.2.4: Profit Maximizations vs. Making Profits2m1.2.5: Profit Maximization: The Case of Losses2m1.2.6: Perfect Competition: The Firm's Supply Curve REPLACE1m1.2.7: Definition of Short Run vs. Long Run1m1.3.1: Perfect Competition: Firm Entry When Profits are Positive2m1.3.2: Perfect Competition: Firm Entry When Profits are Negative1m1.3.3: Perfect Competition: An Efficient Outcome2m1.3.4: Perfect Competition: In The Long Run2m1.3.5: Perfect Competition: An Efficient Outcome Pt 21m

1 reading

Participate in a Purdue Research Project (Optional)10m

3 practice exercises

1.1: Costs and Profits30m1.2: Perfect Competition: Definition and Output30m1.3: Perfect Competition: Implications for Efficiency30m

Week2

Week 2

2 hours to complete

Monopoly

2 hours to complete

13 videos (Total 39 min)

13 videos

2.1.1 Monopoly: Definition1m2.1.2: The Monopoly as a Price Setter2m2.1.3 Marginal Revenue vs Price: Numerical Example2m2.1.4 Marginal Revenue vs Price: Graphical Example2m2.1.5 Marginal Revenue vs Price: Example Using Calculus1m2.1.6 Profit Maximization in a Monopoly2m2.1.7 Profit Maximization in a Monopoly: Numerical Example4m2.2.1 Monopoly vs Perfect Competition6m2.2.2 Efficiency loss under a Monopoly2m2.2.3 Monopoly vs Perfect Competition: Numerical Example5m2.2.4 Monopoly vs Perfect Competition: Example of Dead Weight Loss2m2.2.5 Monopoly vs Perfect Competition: Summary1m2.2.6 Why do we allow monoplies?3m

2 practice exercises

2.1: Monopoly definition30m2.2: Monopoly vs. Perfect Competition Numerical example30m

Week3

Week 3

2 hours to complete

Monopoly Continued

2 hours to complete

14 videos (Total 39 min)

14 videos

3.1.1 Natural Monopoly: Definition1m3.1.2 Government Regulation and Antitrust Law2m3.1.3 Natural Monopoly: Implications for the Average Total Cost3m3.1.4 Natural Monopoly: Graphical Presentation1m3.1.5 Natural Monopoly: Profit Maximizing Outcome4m3.1.6 Natural Monopoly: Regulation though Marginal Cost Pricing3m3.1.7 Natural Monopoly: Regulation though Average Cost Pricing3m3.2.1 Price Discrimination: Definition3m3.2.2 Price Discrimination: Graphical Example4m3.3.1 Monopolistic Competition: Definiton2m3.3.2 Monopolistic Competition: Core Results1m3.3.3 Monopolistic Competition: Graphical Presentation in the Short Run3m3.3.4 Monopolistic Competition: Graphical Presentation in the Long Run1m3.3.5 Monopolistic Competition: Mark up and Excess Capacity2m

3 practice exercises

3.1: Natural Monopoly30m3.2: Price Discriminating Monopoly30m3.3 Monopolistic Competition30m

Week4

Week 4

3 hours to complete

Externalities + Public Goods

3 hours to complete

20 videos (Total 52 min)

20 videos

4.1.1: Externalities: Definition5m4.1.2: Externalities: Allocative Efficiency: Refresher1m4.1.3: Negative Externalities: Implications for Efficiency4m4.1.4: Positive Externalities: Implications for Efficiency3m4.1.5: The Coase Theorem2m4.1.6: Interalizing a Negative Externality via a Per Unit Tax2m4.1.7: Interalizing a Positive Externality via a Per Unit Subsidy1m4.2.1: Externalities: A Numerical Example2m4.2.2: Interalizing a Negative Externality via Tax: A Numerical Example4m4.2.3 Government Intervention in the Case of Externalities2m4.2.4 Externality: Conclusion1m4.3.1 Pure Public Goods: Nonexcludable and Nonrival2m4.3.2: Examples of Different Types of Goods4m4.3.3: Implications of Nonexcludability2m4.3.4: Free Riding1m4.3.5: Implications of Nonrivalness1m4.4.1: The Role of the Government in Providing Public Goods1m4.4.2: Provision of Public Good by the Government2m4.4.3: Free Riding as a Prisoners' Dilemma3m4.4.4: Public Goods Conclusion1m

4 practice exercises

4.1: Externalities30m4.2: Solutions to Externalities30m4.3: Public Goods30m4.4: Solutions to Public Goods30m

Reviews

4.8

125 reviews

5 stars
80.72%
4 stars
15.27%
3 stars
3.47%
2 stars
0.17%
1 star
0.34%

TOP REVIEWS FROM MICROECONOMICS: WHEN MARKETS FAIL

by HTApr 23, 2021

The course is best for those who are beginners to Microeconomics. I had no idea of Microeconomics. This course has given me confidence to start my journey to start learning more. Thanks

by LEOct 20, 2016

Another fine course from Professor Stein. I particularly appreciated the final set of lectures, but all were well presented, understandable, and relevant.

by AMApr 4, 2020

In the beginning, it started to clear out my basics. As we got closer to the end of the course, it related the theoretical knowledge gained to the practical scenario.

by DVOct 23, 2018

Love how the videos were brief, but informative. Very helpful class and exams weren't overly complicated. In the end, I felt as though I retained much of the knowledge.

View all reviews

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Microeconomics: When Markets Fail