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.