In this course, we will begin covering the theory of the firm. Economists call this "The Economics of the Lemonade Stand." And that title makes perfect sense, since the concepts we cover can be used by anyone, from someone owning a lemonade stand, to a car manufacturing company, to a hair salon, to a burrito stand, etc. We will continue our discussion of the firm by focusing on those firms working in a perfectly competitive (or competitive) environment.
The Theory of the Firm
The Theory of the Firm
This course is part of Microeconomics Principles Specialization
Instructor: Dr. José J. Vázquez-Cognet
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Gain insight into a topic and learn the fundamentals.
Beginner level
Recommended experience
8 hours to complete
3 weeks at 2 hours a week
Flexible schedule
Learn at your own pace
What you'll learn
Learn to apply marginal returns to inputs, key firm costs, and cost changes over time.
Understand perfect competition, profit maximization, and profit-maximizing output.
Learn about market structures and distinguish marginal revenue in different firms for profitability assessment.
Explore welfare effects of market power, types of price discrimination, and its societal impact.
Skills you'll gain
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Recently updated!
July 2024
Assessments
3 assignments
Taught in English
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This course is part of the Microeconomics Principles Specialization
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There are 3 modules in this course
Welcome! This course we will begin covering the theory of the firm. Economists call this section, "The Economics of the Lemonade Stand." And that title makes perfect sense, since the concepts we cover can be used by anyone, from someone owning a lemonade stand, to a car manufacturing company, to a hair salon, to a burrito stand, etc.
What's included
9 videos1 reading1 assignment1 discussion prompt
Welcome! This module we continue our discussion of the firm by focusing on those firms working in a perfectly competitive (or competitive) environment.
What's included
10 videos1 reading1 assignment1 discussion prompt
So, why is it that when you fly the person sitting next to you in the plane probably paid a different price for the ticket than what you paid for it? And why does Starbucks charge so much for its coffee even though you can buy coffee at Dunkin’ Donuts for almost half of that price? This module we are finishing our discussion of the firm by focusing on cases that should be more familiar to you than the perfect competition examples we have been using.
What's included
10 videos1 reading1 assignment1 discussion prompt
Instructor
Offered by
Recommended if you're interested in Economics
University of Illinois Urbana-Champaign
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