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Production Theory
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Production Theory

48 MIN · EN · STATUS: [ STREAMING ]
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MIT · Principles of Microeconomics · LECTURE 5

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.

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Runtime compared with the other 194 Economics & Finance lectures
Runtime48 m
Compared with Economics & FinanceShorter than 79%
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Principles of Microeconomics

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Lecture 5 of 62 h 54 m before this · 4 h 28 m in total

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