MIT 14.04 Intermediate Microeconomic Theory, Fall 2020 - Lecture 4: Production and Profit Maximization

MIT 14.04 Intermediate Microeconomic Theory, Fall 2020 Instructor: Prof. Robert Townsend View the complete course: https://ocw.mit.edu/courses/14-04-intermediate-microeconomic-theory-fall-2020/ YouTube Playlist: https://www.youtube.com/watch?v=XSTSfCs74bg&list=PLUl4u3cNGP63wnrKge9vllow3Y2OOOKqF How do profit maximizing firms decide on the level of employment, and on their input/output mix more generally? The problem is broken down into its component parts: feasible production technology, and the prices of inputs and outputs. Predictions are made for individual firms’ responses to domestic price changes with implications for profits. Surprisingly, the same constructs can be used for economy-wide responses to international tariffs, with implications for household welfare. License: Creative Commons BY-NC-SA More information at https://ocw.mit.edu/terms More courses at https://ocw.mit.edu Support OCW at http://ow.ly/a1If50zVRlQ We encourage constructive comments and discussion on OCW’s YouTube and other social media channels. Personal attacks, hate speech, trolling, and inappropriate comments are not allowed and may be removed. More details at https://ocw.mit.edu/comments.