
Production Theory
MIT's 14.01 Principles of Microeconomics continues with Professor Jonathan Gruber's lecture on production theory. Gruber builds up the production function from inputs like labor and capital, then contrasts short-run production, where at least one input is fixed, with long-run production, where firms can adjust everything. He works through returns to scale, showing how output responds when all inputs increase together, and connects this to measures of productivity. A revised segment around the 25-minute mark walks through isoquants using Figure 5.3, the graphical tool for showing combinations of inputs that yield the same output. The lecture is chalkboard-style with Gruber working through definitions and graphs live, building toward later topics like cost curves and firm behavior. It is a straightforward, fundamentals-first treatment aimed at undergraduates new to the theory of the firm.