2.1 Theory of the Firm - Class Notes
Contents
- Thursday, October 3, 2019 (Section 1 Tu/Th)
- Monday, October 7, 2019 (Section 2 M/W)
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 the firm, take my Industrial Organization class next semester.