Wednesday, January 27, 2010

Learning Economics on a Budget: Part IV

Over the past month, I posted to my YouTube Channel a unit on short run production, firm cost in the short run, firm supply decisions, and industry competition. Here are some of my most recent videos:

First, start off with a discussion of the equimarginal principle (For you readers who love calculus, this is how you maximize profit without using calculus).



Second in this unit, I motivate why production curves in the short run look the way they do.



Third in the queue, I demonstrate how to convert the previous production curves into cost curves. That is, functions that relate the quantity produced to the per unit cost of producing. This will be useful for supply.



For the fourth video in the unit, I demonstrate how the previous tools allow us to understand the firm's supply decision in the short run.



Finally, I use the firm's supply curve to demonstrate how to obtain an industry supply curve. I also discuss -- in a limited way -- the role of entry and exit in the industry.



I plan to do more on long run production in the coming videos. I also plan to add some more advanced material (i.e., some firm and industry economics with calculus). But, these videos provide a basic sense for how economists think (or, at least how this economist thinks) about firm and industry supply.

Enjoy!

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