Firm Level Economics: Markets and Allocations

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 diffe

• 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.
• 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.