2.1 — Theory of the Firm — Class Notes

Contents

Wednesday, September 16, 2020

Overview

Today we start looking on the supply side of the market for the next few weeks. You will ultimately see, we will use the same tools (and get basically the same results!) for studying producers (constrained optimization models) as we did for consumers. Sometimes, these models finally “click” for students the second time around, and production is often more intuitive than utility and consumption.

Today we set up the problem, and discuss what it is that firms do. If you want to learn a lot more about the economics of organization and theory of the firm, see my Industrial Organization class.

Slides

Assignments: Exam 1

Exam 1 is live on Blackboard Assignments and is due by Sunday September 20!