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Microeconomics in Action
Explore the producer side of microeconomicsPreview the first lesson free — get full access to all 5 lessons.
Beginner Provider : KnowledgeCity 5 Lessons · 13m in Arabic, German, English, Spanish, French, Portuguese, Chinese
Course Description
How do we make the microeconomic leap from consumer to producer? One major difference is that producers have to worry about competition. In this course on Microeconomics in Action, you’ll learn how different kinds of businesses establish their prices and decide to enter or exit specific markets. You’ll also learn about price elasticity of supply and how it looks different on a chart despite ultimately following the same ideas as demand, because it’s from the selling side.
Some markets are controlled by sellers, and some by buyers. Many run somewhere in between, with a lot of freedom, but also with a lot of competing producers. As producers navigate their own costs, they must also produce based on customer expectations. Sometimes it’s difficult to link demand and supply right at where both parties get the maximum feasible benefit. But we can use economic principles to measure how market participants will interact with products and services in a way that helps producers make the best of what they have to work with.
What You'll Learn
- Understand production microeconomics and how producers operate
- Analyze how different businesses set prices based on market types
- Examine microeconomics in production processes and supply chains
- Explain price elasticity of supply and how it differs from demand
- Understand equilibrium and deadweight loss
- Analyze different market structures and how producers decide to enter or exit markets
Key Takeaways
- Producers, unlike consumers, must contend with competition when establishing prices and deciding whether to enter or exit specific markets.
- Price elasticity of supply follows the same ideas as demand but looks different on a chart because it is viewed from the selling side.
- Markets vary in control: some are controlled by sellers, some by buyers, and many run in between with a lot of freedom and many competing producers.
- Producers must manage their own costs while also producing based on customer expectations.
- Economic principles can be used to measure how market participants interact with products and services, helping producers make the best of what they have to work with.
Frequently Asked Questions
What does the Microeconomics in Action course cover?
The course covers how different kinds of businesses establish prices and decide to enter or exit specific markets, price elasticity of supply, production processes and supply chains, and concepts including equilibrium and deadweight loss.
What will I learn about price elasticity of supply?
You'll learn about price elasticity of supply and how it looks different on a chart despite ultimately following the same ideas as demand, because it is viewed from the selling side.
What are the learning objectives of this course?
The objectives are to understand production microeconomics, understand equilibrium and deadweight loss, and analyze market structures.
What lessons are included in this course?
The lessons are: Introduction; Price Assertions Based on Market Types; Microeconomics in Production Processes and Supply Chains; Price Elasticity of Supply; and Test Your Knowledge.
How does this course differ from a focus on consumers?
This course makes the leap from consumer to producer, focusing on how producers navigate their own costs, competition, and customer expectations rather than the consumer perspective.
