Part E | Sellers
// market power leads to inefficient markets //We'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.
Episode E1
The costs of production
Chapter 13: Costs of production Reading
Skim the text to understand the main ideas
Homework E1: Sunday November 10th Practice Assignment Solutions
Unlimited practice. Instant feedback. Submit to Gradescope.
Block E2 ~ Competitive Firms
Perfect competition emerges when firms are price-takers with no individual market power over the equilibrium price.
Episode E2
Competitive firms
Chapter 14: Competitive markets Reading
Skim the text to understand the main ideas
Homework E2: Monday November 18th Practice Assignment Solutions
Unlimited practice. Instant feedback. Submit to Gradescope.
Block E3 ~ Monopoly
Market power allows firms to influence prices and capture profits at the expense of consumer welfare and economic efficiency.
Episode E3
Monopoly firms
Chapter 15: Monopoly Reading
Skim the text to understand the main ideas
Vignette E3
Monopoly practice problems
Homework E3: Due Date TBD Practice Assignment Solutions
Unlimited practice. Instant feedback. Submit to Gradescope.
Block E4 ~ Market Structures
Comparing perfect competition, monopolistic competition, oligopoly, and monopoly reveals how market structure determines economic outcomes.
Episode E4 Notes
Comparing market structures
Chapter 16: Monopolistic competition Reading
Skim the text to understand the main ideas
Vignette E4
Market structures practice problems
Homework E4: Due Date TBD Practice Assignment Solutions
Unlimited practice. Instant feedback. Submit to Gradescope.
Recitations
Come to Recitations prepared to work through extended Vignettes in both small groups and as a class. Your Recitation Instructor will guide you through a less structured economic problem, similar to what was covered in class and what you'll see on the next MiniExam. Submit your work to Gradescope at the end of Recitation.
Past Demos
MiniExam
MiniExam E will be held on Wednesday November 20th and 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 MiniExam.
Demo E Solutions
Demo E is very similar to what you'll see on MiniExam E. Try solving first to catch your weak points. Then use the video and solutions to check your work.