About Principles of Microeconomics: Market Structures
- Course name: Principles of Microeconomics: Market Structures
Microeconomics: Market Structures will introduce the concept of perfect competition, an ideal model that serves as a benchmark against which real-world market structures are analyzed. Also known as the model of pure competition, perfect competition results in an efficient allocation of resources.
We will then move on to what may be considered the antithesis of perfect competition, the Monopoly Model. You will learn about imperfect competition and the two models that fall under it: monopolistic competition and oligopoly. This unit will also touch upon game theory through the Prisoner's Dilemma Model and a discussion of the Nash Equilibrium.
Finally, we will learn how firms decide how much they will use their resources (which include land, labor, capital, and entrepreneurial ability – all of which are required to produce the final good) and at what price. The demand for resources is derived from the demand for the final goods that are produced with them.
- Approximate learning hours: 26 hours
- Course: One of three micro courses for Principles of Microeconomics
- Level: 1st year Bachelor Degree
About Principles of Microeconomics
The purpose of these three micro courses is to provide you with a basic understanding of the principles of microeconomics.
At its core, the study of economics deals with the choices and decisions that have to be made in order to manage scarce resources available to us. Microeconomics is the branch of economics that pertains to decisions made at the individual level, i.e., by individual consumers or individual firms after evaluating resources, costs, and tradeoffs. When we talk about the economy, we are referring to the marketplace or system in which these choices interact with one another.
In these courses, you will learn how and why these decisions are made and how they affect one another in the economy. Each of the following lessons has been designed as a building block, where the concepts you learn in one lesson will enable you to understand the material you discover in the next lesson.
By the end of these courses, you will have a strong grasp on the major issues that face microeconomists, including consumer and producer behavior, the nature of supply and demand, the different kinds of markets and how they function, and the welfare outcomes of consumers and producers. You will also be able to apply the formal principles you learn to real world issues. The scope and emphasis of these courses goes beyond a general understanding of microeconomics to incorporate the core concepts of the overall field of economics.