This course is part of the Managerial Economics and Business Analysis Specialization

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Larry DeBrock

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Part of the Master of Business Administration (iMBA) degree

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Managerial Economics and Business Analysis SpecializationUniversity of Illinois at Urbana-Champaign

About this Course

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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 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 after the impact of this external shock has played out
• Evaluate the efficiency of an equilibrium
 • 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
• Understand externalities and consider optimal government response to these market failures

This course is part of Gies College of Business’ suite of online programs, including the iMBA and iMSM. Learn more about admission into these programs and explore how your Coursera work can be leveraged if accepted into a degree program at https://degrees.giesbusiness.illinois.edu/idegrees/.

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Course 2 of 7 in the

Managerial Economics and Business Analysis Specialization

Approx. 18 hours to complete

English

Subtitles: Arabic, French, Portuguese (European), Italian, Vietnamese, German, Russian, English, Spanish

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Skills you will gain

Externality
Economics
Game Theory
Market (Economics)

Flexible deadlines

Reset deadlines in accordance to your schedule.

Shareable Certificate

Earn a Certificate upon completion

100% online

Start instantly and learn at your own schedule.

Course 2 of 7 in the

Managerial Economics and Business Analysis Specialization

Approx. 18 hours to complete

English

Subtitles: Arabic, French, Portuguese (European), Italian, Vietnamese, German, Russian, English, Spanish

Could your company benefit from training employees on in-demand skills?

Try Coursera for Business

Instructor

Instructor rating

4.83/5 (146 Ratings)

Larry DeBrock

Dean Emeritus and Professor Emeritus of Finance

University of Illinois, Urbana-Champaign College of Business Department of Business Administration

81,523 Learners

2 Courses

Offered by

University of Illinois at Urbana-Champaign

The University of Illinois at Urbana-Champaign is a world leader in research, teaching and public engagement, distinguished by the breadth of its programs, broad academic excellence, and internationally renowned faculty and alumni. Illinois serves the world by creating knowledge, preparing students for lives of impact, and finding solutions to critical societal needs.

Start working towards your Master's degree

This course is part of the 100% online Master of Business Administration (iMBA) from University of Illinois at Urbana-Champaign. If you are admitted to the full program, your courses count towards your degree learning.

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Syllabus - What you will learn from this course

Content Rating97%(2,773 ratings)

Week

Week 1

2 hours to complete

Course Orientation

You will become familiar with the course, your classmates, and our learning environment. The orientation will also help you obtain the technical skills required for the course.

2 hours to complete

2 videos (Total 4 min), 6 readings, 1 quiz

4 hours to complete

Module 1: Perfect Competition

This module introduces the concept of a perfectly competitive market. It is a benchmark construction, but it accurately models many markets in our economy. We will understand equilibrium outcomes in both the short run and the long run. We will understand how to analyze shocks to these equilibria.

4 hours to complete

12 videos (Total 118 min), 2 readings, 3 quizzes

12 videos

1-1.1. Markets and Allocations - Part 111m

1-1.2. Markets and Allocations - Part 29m

1-1.3. Market Structure - Part 16m

1-1.4. Market Structure - Part 210m

1-1.5. Market Structure - Part 33m

1-1.6. Perfect Competition in Reality - as Told by an Economist10m

1-1.7. Firm Supply Curve in a Perfectly Competitive Industry - Part 17m

1-1.8. Firm Supply Curve in a Perfectly Competitive Industry - Part 217m

1-2.1. Build Short Run Equilibrium Framework10m

1-2.2. Long Run Equilibrium - Part 17m

1-2.3. Long Run Equilibrium - Part 210m

1-2.4. External Shock and Movement to New Equilibrium12m

2 readings

Module 1 Overview10m

Module 1 Readings10m

3 practice exercises

Lesson 1-1 Practice Quiz30m

Lesson 1-2 Practice Quiz30m

Module 1 Quiz30m

Week

Week 2

4 hours to complete

Module 2: Monopoly Markets and Efficiency

Analysts can predict equilibrium outcomes with some degree of certainty. We want to construct a measure of efficiency that will allow us to evaluate the attractiveness of these equilibrium market outcomes. After using this metric to consider the efficiency of the competitive market, we will introduce a different market structure, monopoly, and use our efficiency metric to evaluate the equilibrium resource allocation under monopoly.

4 hours to complete

10 videos (Total 125 min), 2 readings, 3 quizzes

10 videos

2-1.1. Consumer Surplus - Part 19m

2-1.2. Consumer Surplus - Part 215m

2-1.3. Producer Surplus8m

2-1.4. The Benevolent Dictator - Part 114m

2-1.5. The Benevolent Dictator - Part 212m

2-2.1. Monopoly Equilibrium - Part 115m

2-2.2. Monopoly Equilibrium - Part 27m

2-2.3. Marginal Revenue Curve in Monopoly8m

2-2.4. Social Costs of Monopoly16m

2-2.5. Governments Intervene in Monopoly16m

2 readings

Module 2 Overview10m

Module 2 Readings10m

3 practice exercises

Lesson 2-1 Practice Quiz30m

Lesson 2-2 Practice Quiz30m

Module 2 Quiz30m

Week

Week 3

4 hours to complete

Module 3: Oligopoly and Game Theory

Perfectly competitive markets have many sellers. Monopoly has one seller. But much economic activity takes place in markets with just a handful of very large producers. These are called oligopoly markets. We will look at collusive arrangements among a small number of rivals, and then will use simple game theoretic techniques to model equilibrium.

4 hours to complete

15 videos (Total 147 min), 2 readings, 3 quizzes

15 videos

3-1.1. Introducing Oligopoly - Part 15m

3-1.2. Introducing Oligopoly - Part 27m

3-1.3. Collusion - Part 112m

3-1.4. Collusion - Part 28m

3-1.5. Collusion - Part 313m

3-1.6. Efficiency, Social Costs, and Antitrust Enforcement - Part 18m

3-1.7. Efficiency, Social Costs, and Antitrust Enforcement - Part 211m

3-2.1. Simple Game Theory9m

3-2.2. Computer Chess - Part 19m

3-2.3. Computer Chess - Part 26m

3-2.4. The Prisoner's Dilemma - Part 110m

3-2.5. The Prisoner's Dilemma - Part 28m

3-2.6. The Prisoner's Dilemma - Part 317m

3-2.7. The Nash Equilibrium to a Non-Cooperative Game - Part 17m

3-2.8. The Nash Equilibrium to a Non-Cooperative Game - Part 211m

2 readings

Module 3 Overview10m

Module 3 Readings10m

3 practice exercises

Lesson 3-1 Practice Quiz30m

Lesson 3-2 Practice Quiz30m

Module 3 Quiz30m

Week

Week 4

5 hours to complete

Module 4: Market Failures

Sometimes even markets that appear to be capable of great efficiency in resource allocation, such as the perfectly competitive market, can fall short of efficiency. Economists call this market failure. In this module, we will consider information issues and the impact on efficiency. We will also introduce externalities (spillovers) such as pollution and model these impacts.

5 hours to complete

10 videos (Total 78 min), 5 readings, 4 quizzes

10 videos

4-1.1. The Winner's Curse - Part 16m

4-1.2. The Winner's Curse - Part 27m

4-1.3. Information Asymmetries12m

4-1.4. Adverse Selection: Unraveling Insurance Markets6m

4-2.1. Positive and Negative Externalities - Part 18m

4-2.2. Positive and Negative Externalities - Part 29m

4-2.3. Measure the Gains from Positive Externality7m

4-2.4. Measure the Costs Caused by Negative Externality - Part 16m

4-2.5. Measure the Costs Caused by Negative Externality - Part 29m

Gies Online Programs3m

5 readings

Module 4 Overview10m

Module 4 Readings10m

Module 4 Peer Review Explanation10m

Congratulations!10m

Get Your Course Certificate10m

3 practice exercises

Lesson 4-1 Practice Quiz30m

Lesson 4-2 Practice Quiz30m

Module 4 Quiz30m

Reviews

4.9

185 reviews

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TOP REVIEWS FROM FIRM LEVEL ECONOMICS: MARKETS AND ALLOCATIONS

by RVMar 22, 2016

I like this professor and he taught beautifully even in Producer and Consumer behavior, the prequel course in this specialization. High expectations from this course!

by SMar 3, 2020

Great course and one the best professors in the business. One day I hope I get a chance to hire Larry's Tree Trimming Service.

by JPMar 2, 2018

Larry DeBrock is a fantastic professor. He breaks down concepts into consumable portions and offers real-life scenarios to keep it interesting. He changed microeconomics for me!

by VVApr 25, 2020

The whole course was just amazing with clear and crisp explanation for each and every detail and special thanks to the tutor Prof.Larry DeBrock.

View all reviews

About the Managerial Economics and Business Analysis Specialization

In order to effectively manage and operate a business, managers and leaders need to understand the market characteristics and economic environment in which they operate. In this specialization, you will build a solid understanding of the operation of markets and the macro-economic environment with real-world examples. You will be able to identify firm and country-level economic factors that impact business decisions, develop an analytical framework using statistical tools, and apply economic theory and data in the analysis of business environment and trends to make effective business decisions.

The capstone project involves an in-depth analysis of an actual business situation in which you will examine the global economic environment of a business. The final project will be a business plan that uses statistical tools and economic theory to create a comprehensive analysis of the microeconomic and macroeconomic environment in which the focal company operates. This specialization is part of Gies College of Business’ suite of online programs, including the iMBA and iMSM. Learn more about admission into these programs and explore how your Coursera work can be leveraged if accepted into a degree program here.

Managerial Economics and Business Analysis

Frequently Asked Questions

When will I have access to the lectures and assignments?
Access to lectures and assignments depends on your type of enrollment. If you take a course in audit mode, you will be able to see most course materials for free. To access graded assignments and to earn a Certificate, you will need to purchase the Certificate experience, during or after your audit. If you don't see the audit option:
The course may not offer an audit option. You can try a Free Trial instead, or apply for Financial Aid.
The course may offer 'Full Course, No Certificate' instead. This option lets you see all course materials, submit required assessments, and get a final grade. This also means that you will not be able to purchase a Certificate experience.
What will I get if I subscribe to this Specialization?
When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.
Is financial aid available?
Yes. In select learning programs, you can apply for financial aid or a scholarship if you can’t afford the enrollment fee. If fin aid or scholarship is available for your learning program selection, you’ll find a link to apply on the description page.

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Firm Level Economics: Markets and Allocations

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