Producer Theory Calculus
Producer theory analyzes the behaviour of producers and firms.
As noted in the Atlas entry, Producer Theory, it is possible to develop a good intuitive understanding of the underlying concepts without a knowledge of calculus. However, in order to develop what the Atlas Examination Standards refer to as an A level comprehension of producer theory, it is necessary to utilize a minimal degree of calculus. This minimal level is used in the Jonathan Gruber Principles of Microeconomics course in MIT OpenCourseWare (link top right) and detailed links below:
- Introduction to Producer Theory (at http://ocw.mit.edu/courses/economics/14-01sc-principles-of-microeconomics-fall-2011/unit-3-producer-theory/introduction-to-producer-theory/,) with four chapters:
- Firm Production Functions (00:11:18)
- Short Run Production and Diminishing Marginal Product (00:07:04)
- Long Run Production and the Marginal Rate of Technical Substitution (00:11:03)
- Returns to Scale (00:07:52)
- Productivity and Costs (at http://ocw.mit.edu/courses/economics/14-01sc-principles-of-microeconomics-fall-2011/unit-3-producer-theory/productivity-and-costs/) with four chapters:
- Competition I (at http://ocw.mit.edu/courses/economics/14-01sc-principles-of-microeconomics-fall-2011/unit-3-producer-theory/competition-i/) with seven chapters:
- Introduction to Perfect Competition (00:09:17)
- Search Theory (00:04:35)
- Firm Demand vs. Market Demand (00:05:27)
- Measuring Costs in Profit Maximization (00:07:04)
- Short Run Profit Maximization in a Competitive Market (00:13:21)
- Short Run Profit Maximization with Taxation (00:05:26)
- Short Run Shutdown Decisions (00:03:43)
- Competition II (at http://ocw.mit.edu/courses/economics/14-01sc-principles-of-microeconomics-fall-2011/unit-3-producer-theory/competition-ii/) with five chapters:
- Short Run Shutdown Decisions (cont.) (00:06:51)
- Determining Short Run Market Equilibrium (00:12:29)
- Long Run Market Equilibrium: Firm Entry and Exit (00:12:34)
- Long Run Market Supply Curve with Perfect Competition (00:06:15)
- Long Run Market Supply Curve in Real World (00:11:56)
The following problem set is from MIT OpenCourseWare at http://ocw.mit.edu/courses/economics/14-01sc-principles-of-microeconomics-fall-2011/unit-3-producer-theory/problem-set-4/MIT14_01SCF11_assn04.pdf, accessed 20 May 2016.
The solutions can be viewed by clicking on the image of the solution for problem 1 below (at http://ocw.mit.edu/courses/economics/14-01sc-principles-of-microeconomics-fall-2011/unit-3-producer-theory/problem-set-4/MIT14_01SCF11_soln04.pdf, accessed 20 May 2016):
MIT OpenCourseWare, Producer Theory, at http://ocw.mit.edu/courses/economics/14-01sc-principles-of-microeconomics-fall-2011/unit-3-producer-theory/, accessed 19 May 2016.
Atlas topic and subject
Page created by: Ian Clark, last modified on 27 May 2016.
Image: MIT OpenCourseWare, Producer Theory, at http://ocw.mit.edu/courses/economics/14-01sc-principles-of-microeconomics-fall-2011/unit-3-producer-theory/, accessed 19 May 2016.