Part E | Sellers
Market power leads to inefficient marketsWe've mastered coordination and market efficiency—now it's time to explore what happens when sellers have market power. Part E reveals how firms convert inputs to outputs, minimize costs, and maximize profits. You'll discover the dramatic difference between perfect competition and monopoly, and why market structure fundamentally determines economic outcomes. These insights unlock the mystery of why some markets thrive while others exploit consumers—and what we can do about it.
Block E1 | Costs of Production
Firms transform inputs into outputs through production functions and minimize costs to determine their supply decisions.
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Exercise E1 in class
Block E2 | Competitive Firms
Perfect competition emerges when firms are price-takers with no individual market power over the equilibrium price.
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Exercise E2 in class
Block E3 | Monopoly
Market power allows firms to influence prices and capture profits at the expense of consumer welfare and economic efficiency.
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Exercise E3 in class
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Vignette E3 recitation
Block E4 | Market Structures
Comparing perfect competition, monopolistic competition, oligopoly, and monopoly reveals how market structure determines economic outcomes.
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Exercise E4 in class
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Vignette E4 recitation
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Homework E4 home
Due Sun Nov 15
Checkpoint E
Checkpoint E covers everything in Part E. You will begin to learn that if you understand the concepts and do the work in the Vignettes, Homework, and Demo, you're going to be in good shape on the Checkpoint.
