Firm Level Economics: Markets and Allocations

Firm Level Economics: Markets and Allocations

This course is part of Managerial Economics and Business Analysis Specialization

Instructor: Larry DeBrock

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50,528 already enrolled

4 modules

Gain insight into a topic and learn the fundamentals.

1,177 reviews

Intermediate level

Some related experience required

Flexible schedule

2 weeks at 10 hours a week

Learn at your own pace

97%

Most learners liked this course

4 modules

Gain insight into a topic and learn the fundamentals.

1,177 reviews

Intermediate level

Some related experience required

Flexible schedule

2 weeks at 10 hours a week

Learn at your own pace

97%

Most learners liked this course

What you'll learn

Explain how different market structures result in different resource allocations.
Model the impact of external shocks to a particular market structure and demonstrate the new equilibrium price and quantity.
Explain when and why the government might intervene with regulatory authority or antitrust litigation to lessen inefficiencies in some markets.
Describe how information problems can cause inefficient outcomes.

Skills you'll gain

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Assessments

13 assignments

Taught in English

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There are 4 modules in this course

In markets, prices act as rationing devices, encouraging or discouraging production and consumption to find an equilibrium. In this course, you will learn to construct demand curves to capture consumer behavior and supply curves to capture producer behavior. The resulting equilibrium price “rations” the scarce commodity. Additionally, the course examines the ways in which markets are subject government intervention and the impacts of these interventions.

You will be able to: • Explain how different market structures result in different resource allocations • Model the impact of external shocks to a particular market structure and demonstrate the new equilibrium price and quantity after the impact of this external shock has played out • Evaluate the efficiency of an equilibrium • Explain when and why the government might intervene with regulatory authority or antitrust litigation to lessen inefficiencies in some markets • Describe how information problems can cause inefficient outcomes • Understand externalities and consider optimal government response to these market failures This course is part of Gies College of Business’ suite of online programs, including the iMBA and iMSM. Learn more about admission into these programs and explore how your Coursera work can be leveraged if accepted into a degree program at https://degrees.giesbusiness.illinois.edu/idegrees/.

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 will also introduce 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.

What's included

14 videos8 readings4 assignments1 discussion prompt

14 videos Total 122 minutes

Welcome to Firm Level Economics: Markets and Allocations! 4 minutes
Learn on Your Terms 1 minute
1-1.1. Markets and Allocations - Part 1 11 minutes
1-1.2. Markets and Allocations - Part 2 10 minutes
1-1.3. Market Structure - Part 1 7 minutes
1-1.4. Market Structure - Part 2 11 minutes
1-1.5. Market Structure - Part 3 4 minutes
1-1.6. Perfect Competition in Reality - as Told by an Economist 11 minutes
1-1.7. Firm Supply Curve in a Perfectly Competitive Industry - Part 1 7 minutes
1-1.8. Firm Supply Curve in a Perfectly Competitive Industry - Part 2 18 minutes
1-2.1. Build Short Run Equilibrium Framework 10 minutes
1-2.2. Long Run Equilibrium - Part 1 7 minutes
1-2.3. Long Run Equilibrium - Part 2 10 minutes
1-2.4. External Shock and Movement to New Equilibrium 12 minutes

8 readings Total 80 minutes

Syllabus 10 minutes
ePub 10 minutes
About the Discussion Forums 10 minutes
Glossary 10 minutes
Online Education at Gies College of Business 10 minutes
Updating Your Profile 10 minutes
Module 1 Overview 10 minutes
Module 1 Readings 10 minutes

4 assignments Total 120 minutes

Orientation Quiz 30 minutes
Lesson 1-1 Practice Quiz 30 minutes
Lesson 1-2 Practice Quiz 30 minutes
Module 1 Quiz 30 minutes

1 discussion prompt Total 10 minutes

Getting to Know Your Classmates 10 minutes

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.

What's included

10 videos2 readings3 assignments

10 videos Total 125 minutes

2-1.1. Consumer Surplus - Part 1 10 minutes
2-1.2. Consumer Surplus - Part 2 16 minutes
2-1.3. Producer Surplus 8 minutes
2-1.4. The Benevolent Dictator - Part 1 14 minutes
2-1.5. The Benevolent Dictator - Part 2 12 minutes
2-2.1. Monopoly Equilibrium - Part 1 15 minutes
2-2.2. Monopoly Equilibrium - Part 2 8 minutes
2-2.3. Marginal Revenue Curve in Monopoly 8 minutes
2-2.4. Social Costs of Monopoly 17 minutes
2-2.5. Governments Intervene in Monopoly 17 minutes

2 readings Total 20 minutes

Module 2 Overview 10 minutes
Module 2 Readings 10 minutes

3 assignments Total 90 minutes

Lesson 2-1 Practice Quiz 30 minutes
Lesson 2-2 Practice Quiz 30 minutes
Module 2 Quiz 30 minutes

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.

What's included

15 videos2 readings3 assignments

15 videos Total 147 minutes

3-1.1. Introducing Oligopoly - Part 1 5 minutes
3-1.2. Introducing Oligopoly - Part 2 7 minutes
3-1.3. Collusion - Part 1 12 minutes
3-1.4. Collusion - Part 2 9 minutes
3-1.5. Collusion - Part 3 14 minutes
3-1.6. Efficiency, Social Costs, and Antitrust Enforcement - Part 1 8 minutes
3-1.7. Efficiency, Social Costs, and Antitrust Enforcement - Part 2 11 minutes
3-2.1. Simple Game Theory 9 minutes
3-2.2. Computer Chess - Part 1 9 minutes
3-2.3. Computer Chess - Part 2 6 minutes
3-2.4. The Prisoner's Dilemma - Part 1 11 minutes
3-2.5. The Prisoner's Dilemma - Part 2 9 minutes
3-2.6. The Prisoner's Dilemma - Part 3 17 minutes
3-2.7. The Nash Equilibrium to a Non-Cooperative Game - Part 1 7 minutes
3-2.8. The Nash Equilibrium to a Non-Cooperative Game - Part 2 11 minutes

2 readings Total 20 minutes

Module 3 Overview 10 minutes
Module 3 Readings 10 minutes

3 assignments Total 90 minutes

Lesson 3-1 Practice Quiz 30 minutes
Lesson 3-2 Practice Quiz 30 minutes
Module 3 Quiz 30 minutes

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.

What's included

9 videos5 readings3 assignments1 peer review1 plugin

9 videos Total 74 minutes

4-1.1. The Winner's Curse - Part 1 7 minutes
4-1.2. The Winner's Curse - Part 2 7 minutes
4-1.3. Information Asymmetries 12 minutes
4-1.4. Adverse Selection: Unraveling Insurance Markets 7 minutes
4-2.1. Positive and Negative Externalities - Part 1 9 minutes
4-2.2. Positive and Negative Externalities - Part 2 9 minutes
4-2.3. Measure the Gains from Positive Externality 8 minutes
4-2.4. Measure the Costs Caused by Negative Externality - Part 1 6 minutes
4-2.5. Measure the Costs Caused by Negative Externality - Part 2 9 minutes

5 readings Total 50 minutes

Module 4 Overview 10 minutes
Module 4 Readings 10 minutes
Module 4 Peer Review Explanation 10 minutes
Congratulations on completing the course! 10 minutes
Get Your Course Certificate 10 minutes

3 assignments Total 90 minutes

Lesson 4-1 Practice Quiz 30 minutes
Lesson 4-2 Practice Quiz 30 minutes
Module 4 Quiz 30 minutes

1 peer review Total 60 minutes

Module 4 Peer Review Assignment 60 minutes

1 plugin Total 15 minutes

How was the course? 15 minutes

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This course is part of the following degree program(s) offered by University of Illinois Urbana-Champaign. If you are admitted and enroll, your completed coursework may count toward your degree learning and your progress can transfer with you.¹

Instructor

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Larry DeBrock

University of Illinois Urbana-Champaign

2 Courses 118,635 learners

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University of Illinois Urbana-Champaign

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Reviewed on Apr 25, 2020

The whole course was just amazing with clear and crisp explanation for each and every detail and special thanks to the tutor Prof.Larry DeBrock.

Reviewed on Mar 3, 2020

Great course and one the best professors in the business. One day I hope I get a chance to hire Larry's Tree Trimming Service.

Reviewed on Mar 2, 2018

Larry DeBrock is a fantastic professor. He breaks down concepts into consumable portions and offers real-life scenarios to keep it interesting. He changed microeconomics for me!

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