Two Experiments in Firm Choice.

This paper describes two short experiments which can be run back-to-back in a microeconomic principles course. In both experiments, student groups run hypothetical firms and compete to maximize profit. The first experiment assumes perfect competition and teaches students to follow the production and shutdown rules when firms are price-takers. The second experiment allows students to set their own production level and price in an oligopoly market. Students apply cost structure, firm choice, and market structure theory. Each experiment takes about thirty minutes and can be implemented in an in-person, online, or hybrid course. [ABSTRACT FROM AUTHOR]