Principles of Economics: Microeconomics - Down to Business from Coursera

In this second portion of the three-course specialization covering economics, we're going to be focusing on Microeconomics or the business side of things. This course is also based heavily on my ECON 100 course that I teach here at Rice University. Through lectures, short quizzes, problem sets, and discussions we're going to take a look at subjects such as, costs of production, perfect competition, monopolies, monopolistic competition, oligopolies, and household choices. And you'll still get all the unsolicited food and cooking advice sprinkled in there too :)

Although this course is intended for anyone with an interest in economics, we will occasionally be using some basic math. I would also recommend that you take the first course, "A Story of Economics: Getting to Know You" before enrolling in this course.

Things you should learn by the end of this course:

1. Identify how Opportunity Costs affect economic decisions.

2. Identify how economic decision makers compare marginal benefits to marginal

costs to make optimal choices.

3. In a graph, identify the gains from trade.

4. Describe the relationship between prices, market demand, and market supply.

5. Calculate and interpret the meaning of an elasticity coefficient.

6. Evaluate the effects of government policy on supply and demand.

7. Calculate and interpret the meaning of market efficiency.

8. Evaluate the effects of externalities and the policies associated with them, and

identify how they are related to different types of goods.

9. Identify the costs of production and interpret their shapes.

10. Communicate how different degrees of competition in a market affect pricing and

output.

11. Identify the prisoner’s dilemma in the context of an application.

12. Explain the interaction between budget constraints and indifference curves.

What's inside

Syllabus

Welcome to the Course!

Welcome to the second course of A Story of Economics! Thank you for enrolling! Please take a few minutes and explore the orientation materials that will help you with expectations and what you need to be doing to be successful in this course.

Module 1 - The Costs of Production

Welcome to costs of production. We're going to look at the cost that firms typically face when they produce. Now, so far, in course 1, we've talked a lot about revenue. We talked a lot about revenue with elasticity, when it's elastic you lower the price to raise revenue, when it's inelastic you raise the price to raise revenue. But firms, they're not trying to maximize revenue. What are they trying to maximize? Let's find out!

Module 2 - Perfect Competition

This is going to be the first of our four different market structures that we're going to look at. Now, when you think of perfect competition, you can think of it more as really like a theoretical boundary. But it's important to understand perfect competition- We're going to be able to compare it to our other market structures, monopoly, monopolistic competition, and oligopoly, so that we can see the benefits and the advantages of competition.

Module 3 - Monopoly

Here we're going to be talking about our monopolies. Last time we talked about perfect competition. Our monopoly is really going to be the polar opposite of that. What is our monopoly? Well, let's find out!

Module 4 - Monopolistic Competition and Oligopoly

Welcome to monopolistic competition and oligopoly. What is monopolistic competition? Well as the name portends, it's a hybrid. It's a hybrid between our perfect competition and our monopolies. But that's not all! Let's get into it!

Module 5 - Household Choices

Welcome to household choices. We've been talking a lot about our firms. Here now, we're going to start talking more about our households. There's two sides to business, right? There's the buyer, there's the seller. In the labor market, there's the employee and the employer. So here as far as our household goes, who is the household in the goods market? Let's explore!

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Introduces microeconomics to overall economics concepts previously learned

Explores core economics topics like costs of production, supply and demand, and market efficiency

Provides real-world context through food and cooking examples

May require some basic math, but prior knowledge of economics is recommended

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 Principles of Economics: Microeconomics - Down to Business with these activities:

Explore online simulations

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Interactive simulations can provide a hands-on way to explore economic concepts and reinforce your understanding beyond the theoretical framework presented in the course materials.

Browse courses on Microeconomics

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Search for online simulations related to microeconomic concepts
Select a simulation that aligns with your interests or areas needing improvement
Follow the instructions and actively engage with the simulation

Solve optimization problems

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Solving optimization problems will help you apply the principles of marginal analysis to find the optimal solutions in economic decision-making.

Browse courses on Optimization

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Review the concept of marginal analysis
Solve practice problems involving optimization of consumer or producer choices

Attend study group

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Peer discussion and study groups offer an opportunity to engage with fellow learners, clarify concepts, and reinforce your understanding of the course material in a collaborative setting.

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Join or form a study group with classmates
Meet regularly to discuss course material, solve problems, or prepare for exams

Three other activities

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Visualize market equilibrium

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Creating a visual representation of market equilibrium will help you understand the relationship between demand, supply, and market price.

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Collect data on market price and quantity for a particular good or service
Plot the demand and supply curves on a graph
Find the equilibrium point where demand and supply intersect

Summarize course materials

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This activity will help you consolidate and strengthen your understanding of the concepts covered in the course by summarizing the key points from the lecture notes and textbook readings.

Browse courses on Microeconomics

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Review your notes from class
Summarize the main points of each section
Organize your summaries into a coherent outline

Simulate market behavior

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Building a simulation of market behavior will allow you to explore the interactions between different market participants and observe the emergent properties of the market.

Browse courses on Game Theory

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Choose a market to simulate (e.g., a competitive market, a monopoly, an oligopoly)
Define the rules and parameters of the simulation
Run the simulation and collect data
Analyze the results of the simulation

Career center

Learners who complete Principles of Economics: Microeconomics - Down to Business will develop knowledge and skills that may be useful to these careers:

Economist

Economists are responsible for studying the patterns of production and consumption in the global economy. As an Economist, you will analyze economic data and make predictions about market trends. The Principles of Economics: Microeconomics - Down to Business course covers supply and demand, market equilibrium, and firm behavior, which are key concepts for success in this field.

See salaries and explore the career path for Economist

Financial Analyst

Financial analysts evaluate the financial performance and stability of companies and make recommendations regarding investments. The course will help you understand how firms operate and make decisions, which is essential for making sound investment recommendations. The course also covers topics such as risk management and portfolio theory, which are important for success in this field.

See salaries and explore the career path for Financial Analyst

Market Research Analyst

Market research analysts study market trends and consumer behavior to help businesses make informed decisions. The Principles of Economics: Microeconomics - Down to Business course covers topics such as consumer behavior, market segmentation, and pricing strategies, which are essential for success in this field. The course also covers qualitative and quantitative research methods.

See salaries and explore the career path for Market Research Analyst

Management Consultant

Management consultants help businesses improve their performance by identifying problems and recommending solutions. The Principles of Economics: Microeconomics - Down to Business course covers topics such as cost analysis, decision-making, and organizational behavior, which are essential for success in this field.

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Product Manager

Product managers are responsible for the development and marketing of products. The Principles of Economics: Microeconomics - Down to Business course covers topics such as product development, pricing, and marketing strategy, which are essential for success in this field.

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Marketing Manager

Marketing managers are responsible for developing and executing marketing campaigns. The Principles of Economics: Microeconomics - Down to Business course covers topics such as consumer behavior, market segmentation, and marketing strategy, which are essential for success in this field.

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Sales Manager

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Business Analyst

Business analysts help businesses improve their operations by identifying problems and recommending solutions. The Principles of Economics: Microeconomics - Down to Business course covers topics such as cost analysis, decision-making, and organizational behavior, which are essential for success in this field.

See salaries and explore the career path for Business Analyst

Operations Manager

Operations managers are responsible for overseeing the day-to-day operations of a business. The Principles of Economics: Microeconomics - Down to Business course covers topics such as production planning, inventory management, and quality control, which are essential for success in this field.

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Investment Banker

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Data Analyst

Data analysts collect, analyze, and interpret data to help businesses make informed decisions. The Principles of Economics: Microeconomics - Down to Business course covers topics such as data analysis techniques, data visualization, and statistical modeling, which are essential for success in this field.

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Actuary

Actuaries use mathematical and statistical methods to assess risk and uncertainty. The Principles of Economics: Microeconomics - Down to Business course covers topics such as probability, statistics, and risk management, which are essential for success in this field.

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Software Engineer

Software engineers design and develop software applications. The Principles of Economics: Microeconomics - Down to Business course may be of interest to software engineers because it covers topics such as project management, cost analysis, and decision-making, which are relevant to the software development process.

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Web Developer

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Graphic designer

Graphic designers create visual concepts, using computer software or by hand, to communicate ideas that inspire, inform, and captivate consumers. The Principles of Economics: Microeconomics - Down to Business course may be of interest to graphic designers because it covers topics such as marketing, branding, and consumer behavior, which are relevant to the graphic design process.

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