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
Taught in English
Instructor: Dr. José J. Vázquez-Cognet
Included with 
Course
Gain insight into a topic and learn the fundamentals
Beginner level
Recommended experience
8 hours (approximately)
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
Details to know
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Recently updated!
July 2024
Assessments
3 quizzes
Course
Gain insight into a topic and learn the fundamentals
Beginner level
Recommended experience
8 hours (approximately)
Flexible schedule
Learn at your own pace
See how employees at top companies are mastering in-demand skills
Build your subject-matter expertise
This course is part of the Microeconomics Principles Specialization
When you enroll in this course, you'll also be enrolled in this 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 quiz1 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 quiz1 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 quiz1 discussion prompt
Instructor
Offered by
Recommended if you're interested in Economics
University of Illinois Urbana-Champaign
Association of International Certified Professional Accountants
Universitat Autònoma de Barcelona
Google Cloud
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