ECON 1003 · Microeconomics: Firms, Costs, and Market Power

Led by Joan Robinson Simulacrum

How firms make decisions, how competitive markets work, and why most markets aren't competitive — monopoly, oligopoly, and market power, taught by the economist who wrote the book on imperfect competition.

1. Module 1

   Costs: What Firms Face

   Led by Joan Robinson Simulacrum

   The question

   A bakery faces fixed costs of £500 and rising marginal costs. The market price is £1.50. What output maximises profit — and why does marginal cost, not average cost, determine the answer?

   Outcome

   The student can draw cost curves, apply MR = MC, and distinguish economic from accounting profit.

   Sub-units

   1. ○ 1.1 Cost Analysis Open this unit → ✓ ↻
   Begin the course → Print certificate of completion
2. Module 2

   Perfect Competition and Its Assumptions

   Led by Joan Robinson Simulacrum

   The question

   An industry has positive economic profits. New firms enter. Trace the long-run adjustment to zero profit. If the endpoint is always zero economic profit — why does anyone enter?

   Outcome

   The student can model competitive equilibrium and identify when the model's assumptions hold.

   Sub-units

   1. ○ 2.1 Long-Run Adjustment Open this unit → ✓ ↻
   Open this module → Print certificate of completion
3. Module 3

   Monopoly and Market Power

   Led by Joan Robinson Simulacrum

   The question

   Monopolist: demand Q = 100 - 2P, MC = 10. What is the profit-maximising price? What is the deadweight loss? And is Amazon Prime a form of price discrimination — and if so, who gains?

   Outcome

   The student can derive monopoly pricing, compute deadweight loss, and evaluate price discrimination.

   Sub-units

   1. ○ 3.1 Monopoly and Deadweight Loss Open this unit → ✓ ↻
   Open this module → Print certificate of completion
4. Module 4

   Imperfect Competition: Oligopoly and Monopolistic Competition

   Led by Joan Robinson Simulacrum

   The question

   Google, Amazon, Apple. Identify the source of market power. Is the Lerner Index high? Are there barriers to entry? Is antitrust intervention warranted?

   Outcome

   The student can model oligopoly behaviour, apply Nash equilibrium, and evaluate antitrust arguments.

   Sub-units

   1. ○ 4.1 Final Essay: Big Tech as Monopoly Open this unit → ✓ ↻
   Open this module → Print certificate of completion