Firm Level Economics: Markets and Allocations from Coursera

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/.

What's inside

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.

Module 1: Perfect Competition

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.

Module 2: Monopoly Markets and Efficiency

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.

Module 3: Oligopoly and Game Theory

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.

Module 4: Market Failures

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.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Introduces microeconomic principles for a broad audience of learners

Will give a balanced view of efficient and inefficient market mechanisms and structures

Teaches the fundamentals of market equilibrium, from basics to models

Reviews summary

Firm level economics: engaging and informative

Learners say Firm Level Economics: Markets and Allocation is an engaging and informative course. Students say that Professor Larry DeBrock is a fantastic instructor who does a masterful job in explaining complex economic concepts by using intuition and reason rather than focusing on mathematical analysis. Students say that the lectures are clear and well-related to the real world. There are also helpful excerpts from real-life experiences.

The course incorporates real-life examples and excerpts to make learning more relatable.

"He shows how to apply the concept to contemporary relevant issues."

"The professor does a brilliant job of explaining each and every concept with real world examples."

"Great Class and great concepts. Larry is quite relatable and provides many examples to get his point across."

"Again, Professor DeBrock does a masterful job! Best economics professor I've had in 50 years"

The course lectures are well-prepared and easy to understand.

"Excellent course content with lots of deep learning concepts of economics.."

"Very easy to follow along, and well related to world problems as well. Very engaging course, definitely recommend."

"The way a professor gave a lecture is very clear. Thank you very much for a perfect lecture."

"Prof. DeBrock makes very complicated concepts seem simple and understandable."

Professor DeBrock is exceptional and makes learning economic concepts enjoyable.

"Professor Larry is simply the best!"

"The professor is really exceptional!"

"Prof.Larry's teachings via video was mind-blowing!!"

"Excellent Professor with easy to understand lectures."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Firm Level Economics: Markets and Allocations with these activities:

Conduct Demand and Supply Practice Problems

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Solving practice problems will help you master how to construct demand and supply curves and analyze market equilibrium

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Locate 10 practice problems online or in a textbook
Break down each problem into smaller steps
Solve each problem and check your answer

Participate in Virtual Study Groups

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Collaboration with peers through virtual study groups will enhance your understanding and problem-solving skills

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Join or form a study group with 2-4 classmates
Select a course topic for each session
Discuss key concepts, solve problems, and share insights

Explore Game Theory Concepts with Online Tutorials

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Guided tutorials will provide you with a deeper understanding of game theory concepts, which are essential for analyzing market interactions

Browse courses on Game Theory

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Review course materials on game theory
Search for reputable online tutorials on Coursera or EdX
Complete 2-3 tutorials
Apply your understanding to market analysis

Four other activities

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Show all seven activities

Participate in Case Competitions

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Involving yourself in case competitions will refine your problem-solving abilities and allow you to apply course concepts in a competitive setting

Browse courses on Business Case Analysis

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Identify and register for relevant case competitions
Form a team or work individually
Analyze the case and develop a solution
Present your solution to a panel of judges

Create a Market Analysis Report

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Writing a market analysis report will allow you to synthesize and apply your knowledge to a real-world scenario

Browse courses on Market Analysis

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Identify an industry or market of interest
Analyze the supply and demand factors
Identify market trends and potential disruptions
Write a comprehensive report outlining your findings

Design a Presentation on a Market Failure

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Creating a presentation on market failures will enhance your understanding and enable you to effectively communicate your knowledge

Browse courses on Market Failure

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Research a specific type of market failure
Develop a concise presentation outlining the causes, consequences, and potential solutions
Present your findings to classmates or a broader audience

Develop a Market Simulation Model

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Building a market simulation model will demonstrate your understanding of market dynamics and allow you to explore different scenarios

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Design the model structure and parameters
Develop the code or use a modeling software
Run simulations and analyze the results
Present your findings in a report or presentation

Career center

Learners who complete Firm Level Economics: Markets and Allocations will develop knowledge and skills that may be useful to these careers:

Economist

Economists research, analyze, and interpret data to provide insights and recommendations on economic issues. This course can help you develop the analytical skills you'll need to succeed in this role. By understanding how prices act as rationing devices and the impact of external shocks in different market structures, you can better understand economic trends and make informed decisions.

See salaries and explore the career path for Economist

Market Research Analyst

Market Research Analysts study market conditions, analyze data, and identify trends to help businesses make informed decisions. This course can help you develop the skills you need to conduct market research and analyze market data effectively. You'll learn how to construct demand and supply curves, model the impact of external shocks, and evaluate the efficiency of market outcomes.

See salaries and explore the career path for Market Research Analyst

Business Analyst

Business Analysts analyze data and develop recommendations to help businesses improve their performance. This course can help you build a foundation in economics, which is essential for understanding how businesses operate. You'll learn how market structures affect resource allocation, how government intervention can impact markets, and how information problems can lead to inefficient outcomes.

See salaries and explore the career path for Business Analyst

Financial Analyst

Financial Analysts analyze financial data to make investment recommendations. This course can help you develop the analytical skills you'll need to succeed in this role. By understanding how markets work and how different market structures affect resource allocation, you can better understand how companies perform and make informed investment decisions.

See salaries and explore the career path for Financial Analyst

Consultant

Consultants provide advice and guidance to businesses on a variety of topics, including economics. This course can help you develop the skills you need to succeed in this role. You'll learn how to analyze market data, identify trends, and make recommendations to help businesses improve their performance.

See salaries and explore the career path for Consultant

Data Scientist

Data Scientists use data to solve business problems. This course can help you develop the analytical skills you'll need to succeed in this role. By understanding how markets work and how different market structures affect resource allocation, you can better understand how businesses operate and make informed decisions.

See salaries and explore the career path for Data Scientist

Marketing Manager

Marketing Managers develop and execute marketing campaigns to promote products and services. This course can help you develop the skills you need to understand market dynamics and target your marketing efforts effectively. You'll learn how to construct demand curves, identify external shocks that could impact your market, and evaluate the efficiency of different marketing channels.

See salaries and explore the career path for Marketing Manager

Product Manager

Product Managers develop and manage products. This course can help you develop the skills you need to understand market needs and develop products that meet those needs. You'll learn how different market structures affect resource allocation, how government intervention can impact your market, and how information problems can lead to inefficient outcomes.

See salaries and explore the career path for Product Manager

Sales Manager

Sales Managers lead and manage sales teams. This course can help you develop the skills you need to understand market dynamics and develop effective sales strategies. You'll learn how different market structures affect resource allocation and how government intervention can impact your market.

See salaries and explore the career path for Sales Manager

Operations Manager

Operations Managers plan and manage the day-to-day operations of a business. This course can help you develop the skills you need to understand market dynamics and develop efficient operations. You'll learn how different market structures affect resource allocation, how government intervention can impact your market, and how information problems can lead to inefficient outcomes.

See salaries and explore the career path for Operations Manager

Supply Chain Manager

Supply Chain Managers oversee the flow of goods and services from suppliers to customers. This course can help you develop the skills you need to understand market dynamics and develop efficient supply chains. You'll learn how different market structures affect resource allocation, how government intervention can impact your market, and how information problems can lead to inefficient outcomes.

See salaries and explore the career path for Supply Chain Manager

Risk Manager

Risk Managers identify and manage risks that could impact a business. This course can help you develop the skills you need to understand market dynamics and identify potential risks. You'll learn how different market structures affect resource allocation, how government intervention can impact your market, and how information problems can lead to inefficient outcomes.

See salaries and explore the career path for Risk Manager

Compliance Officer

Compliance Officers ensure that a business complies with all applicable laws and regulations. This course can help you develop the skills you need to understand market dynamics and comply with relevant laws and regulations. You'll learn how different market structures affect resource allocation, how government intervention can impact your market, and how information problems can lead to inefficient outcomes.

See salaries and explore the career path for Compliance Officer

Auditor

Auditors examine financial records to ensure accuracy and compliance with laws and regulations. This course can help you develop the skills you need to understand market dynamics and audit financial records effectively. You'll learn how different market structures affect resource allocation, how government intervention can impact your market, and how information problems can lead to inefficient outcomes.

See salaries and explore the career path for Auditor

Tax Accountant

Tax Accountants prepare and file tax returns for individuals and businesses. This course can help you develop the skills you need to understand market dynamics and comply with tax laws and regulations. You'll learn how different market structures affect resource allocation, how government intervention can impact your market, and how information problems can lead to inefficient outcomes.

See salaries and explore the career path for Tax Accountant