Microeconomics: Theory of the Firm and Market Structures

Understanding how firms make decisions about production and pricing is essential for analyzing economic behavior and market outcomes. This course provides a clear, comprehensive introduction to the core principles governing business strategy. By the end of this course, you will be able to dissect a firm's cost structure, understand profit maximization under various constraints, and compare the strategic behavior of firms operating in competitive versus non-competitive markets. What you'll learn: * Understand the relationship between production inputs and output using various production functions and time horizons. * Analyze short-run and long-run costs, including marginal, average, and total cost curves, and determine optimal output levels. * Master the characteristics and equilibrium conditions of the four main market structures: perfect competition, monopoly, monopolistic competition, and oligopoly. * Apply foundational game theory concepts, such as the Prisoner's Dilemma, to model strategic interactions between firms in an oligopoly. * Examine the concepts of market failure, focusing on externalities and public goods, and potential policy solutions to improve efficiency. The course begins by establishing the theory of the firm, moving from fundamental production concepts to detailed cost analysis. We then systematically explore profit maximization across different market structures, concluding with an introduction to strategic behavior and market imperfections. This course is designed for beginners who have a basic grasp of supply and demand or have completed an introduction to consumer theory. No advanced mathematical or economic background is required. Start building your foundational knowledge of microeconomic principles today.