Understanding Markets: Perfect Competition
4.5 (1 rating)
Instead of using a simple lifetime average, Udemy calculates a course's star rating by considering a number of different factors such as the number of ratings, the age of ratings, and the likelihood of fraudulent ratings.
738 students enrolled
Wishlisted Wishlist

Please confirm that you want to add Understanding Markets: Perfect Competition to your Wishlist.

Add to Wishlist

Understanding Markets: Perfect Competition

A guide to understand Perfect Competition
4.5 (1 rating)
Instead of using a simple lifetime average, Udemy calculates a course's star rating by considering a number of different factors such as the number of ratings, the age of ratings, and the likelihood of fraudulent ratings.
738 students enrolled
Created by Abdullahil Mamun
Last updated 4/2017
English
Current price: $10 Original price: $30 Discount: 67% off
5 hours left at this price!
30-Day Money-Back Guarantee
Includes:
  • 1.5 hours on-demand video
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
What Will I Learn?
  • Define market in terms of its features
  • Learn about market structure and its different forms
  • Understand basic concepts of revenue and costs
  • Explain basic postulates of perfect competition
  • Explain equilibrium of a perfectly competitive (PC) firm both in the short-run and long-run
  • Interpret the Production decision of PC firm in the short-run
  • Illustrate when a firm produces facing loss
View Curriculum
Requirements
  • No specific prerequisites are necessary
  • All concepts are introduced slowly and gradually, but comfort with thinking analytically will be helpful
Description

The course contains four sections.

Section A defines market introducing its essential features. It also defines market structure and its different forms. The basic concepts of revenue and costs that are necessary to understand the operation of firms in different market structures are discussed in detail.

Section B works with basic postulates of Perfect Competition (PC) . The price taking role of firm under PC that makes it unique from firms in other market structure is discussed in detail. The concepts of total revenue (TR), average revenue (AR) and marginal revenue (MR) under PC is explained.

Section C focuses on the short-run equilibrium of PC firm. In this section, learners will also be able to know the production decision of a PC firm in the short-run. Firm's super normal profit situation, normal profit or break even situation, and the situation of loss will be examined with necessary illustrations.

Whether firm produces in the short-run facing loss or not is an important issue. Section D provides a detail when a firm under PC produces in the short-run and when it stops operation facing loss. It ends with the examination of lung run equilibrium of PC firm.

The course consists of 20 lectures and a total of 1 hour 40 minutes.  It combines both mathematical and graphical contents where possible, so that one can learn alternative ways of interpreting the concepts.

The course is designed considering the desire of students of economics and business. But the contents are arranged in such a way that learners from other disciplines can easily go through the course.

Who is the target audience?
  • The course is designed considering the desire of the students of economics and business
  • It will be easy going for the learners of other disciplines having analytical thinking attitude
Students Who Viewed This Course Also Viewed
Curriculum For This Course
20 Lectures
01:36:06
+
Market & Market Structure, Concepts of Revenue & Costs
5 Lectures 20:32

Organization of the course

Preview 02:31

Definition of Market with its essential features

Definition of market structure and its diƃerent forms

Preview 04:23

- Definition of TR, AR and MR

- How can we have AR from TR?

- How can we have MR from TR?

Concepts of Revenue
03:12

- Define Total Cost, Total Fixed Cost & Total Variable Cost

- Also show how we can have TC summing up TFC and TVC

Concepts of Costs
05:12

- Define Average Cost, Average Fixed Cost and Average Variable Cost
- Also show the relative shape, position and relationship among them

Concepts of Average Costs
05:14
+
Perfect Competition: Its Basic Postulates
6 Lectures 30:08

Explain how the assumptions of large number of buyers and sellers and homogeneous product lead the firm to face a perfectly elastic demand curve. Students will get the answer of two important question-

1. Why is a PC firm said to be price taker?
2. Why is the demand curve faced by firm under PC is horizontal/ perfectly elastic?

Basic Postulates of Perfect Competition
02:11

Offers a detail explanation of the rest of the assumptions

Preview 02:48

Assumptions in detail
03:20

Derive AR and MR from TR and show that it is nothing but the price (P) for PC

Why do AR and MR curve become the price line in PC?
07:05

It uses total revenue and total cost method to explain the short-run equilibrium of PC firm.

Short-run equilibrium of PC Firm: TR-TC Method
06:33

Short-run equilibrium of PC Firm: MR-MC Method
08:11
+
Short-run Equilibrium & Production Decision of PC Firm
4 Lectures 18:58

Introduces three possible situations that a PC firm can face in the short-run at equilibrium-

1. Super normal profit situation

2. Normal profit or break-even situation

3. The situation of loss

Preview 03:01

Explains the case of super normal profit when the firm is in equilibrium in the short-run

Super Normal Profit in the Short-run
05:12

Explains when firm reaches to break even situation and earns only normal profit

Normal Profit or Break Even Production Decision
06:21

Explains the situation of loss of a PC firm at equilibrium in the short run

When does a firm face loss in the short run under PC?
04:24
+
Production Decision Facing Loss
5 Lectures 26:28

Explains all the possible situations that a PC firm confronts when there is loss at equilibrium using a simple table.

Preview 06:51

Explains when a firm produces facing loss.

When should firm produce when there is loss at equilibrium?
09:04

It explains the shut-down situation of a PC firm facing loss in the short-run

Shut-down Situation
03:27

Explains the situation when a firm stops its operation when there is loss in the short-run.

When should the Firm stop its production
03:22

Illustrates the long-run equilibrium of PC  firm

Long-run Equilibrium of PC Firm
03:44
About the Instructor
Abdullahil Mamun
3.9 Average rating
26 Reviews
2,650 Students
4 Courses
Academician

I am a practicing academician of Economics at IIUC and currently working as a fellow of the Scientific and Technological Research Council of Turkey (TUBITAK). I have more than 10 years of teaching experiences both at undergraduate (BBA) and post graduate (MBA) levels. I am extremely passionate in teaching and thus here to share my teaching experiences with students worldwide.