Enroll Course: https://www.coursera.org/learn/microeconomics-part2
In the realm of economics, the concept of perfect markets achieving maximum efficiency is a foundational principle. However, the reality is that markets are often imperfect. Coursera’s ‘Microeconomics: When Markets Fail’ course delves deep into these imperfections, offering a comprehensive understanding of why markets falter and exploring potential solutions.
The course begins by establishing the benchmark of perfect competition, a theoretical model that highlights the benefits of unfettered market forces. This initial segment lays the groundwork for understanding the subsequent exploration of market failures. We learn to graphically model perfect competition and discuss its implications for long-run profits and overall efficiency.
Next, the course tackles monopolies, examining situations where a single firm dominates the market. It clearly illustrates how market power benefits the firm at the expense of consumers and society as a whole, leading to a reduction in overall surplus. The exploration of monopolies continues with a look at different types, including natural monopolies and price discrimination, and contemplates government intervention strategies to mitigate their negative impacts.
The syllabus then moves on to externalities and public goods, two classic scenarios where markets fail to deliver efficient outcomes. The course defines these concepts, explains the mechanisms of market failure, and proposes remedies through market design and regulation.
Finally, the course addresses asymmetric information and inequality. By relaxing the assumption of perfect information, it introduces concepts like moral hazard and adverse selection, demonstrating how information imbalances can lead to market failures and discussing potential remedies. The concluding segment serves as a reminder of the importance of equity alongside efficiency, offering an introduction to how economists measure poverty and inequality.
Overall, ‘Microeconomics: When Markets Fail’ is an invaluable course for anyone seeking to understand the complexities of modern economies. The use of everyday examples, coupled with the application of theory to current events and policy debates through weekly exercises, makes the learning process engaging and practical. I highly recommend this course to students, professionals, and anyone interested in gaining a deeper insight into how markets function and how they can be improved.
Enroll Course: https://www.coursera.org/learn/microeconomics-part2