5. Production Theory

MIT 14.01 Principles of Microeconomics, Fall 2018
Instructor: Prof. Jonathan Gruber

This video introduces the second unit of the course about producer theory. Topics include the production function, short-run production, long-run production, rates of technical substitution, returns to scale, and productivity.

License: Creative Commons BY-NC-SA

[tarafahey]

04:38 Variable & Fixed Inputs
05:37 Long Run vs Short Run
08:09 Short Run
09:35 - - > Marginal Product Utility
12:16 Long Run
13:31 - - > Isoquants
16:16 - - > Leontieff Graph
17:44 - - > Marginal Rate of Technical Substitution
24:40 Returns to scale
29:03 - - > Examples
31:45 Productivity
30:30 - - > Total Factor Productivity
43:58 Three Questions:
44:03 - - > IT Revolution & (lack of) Productivity Gains
45:09 - - > More Work or More Leisure?
46:21 - - > Top 1% vs Bottom 99% - Who gains?

[lindadlamini]

THANK YOU MIT FOR RECORDING AND UPLOADING THESE LECTURES HERE FREE OF CHARGE. WATCHING THESE FROM SOUTH AFRICA, BTW.

[andile]

Instructors with an empirical background have a wonderful way of distilling a subject. This is awesome stuff. Forever grateful for the introductory content.

[alibabausman]

I have never understand this course before until now. This lectures from MIT are of great help to us studying economics. We are not in the class but we do understand the lectures as equal as the class. Professor Gruber is a genius. I am an M.sc Student from Nigerian Defense Academy (NDA), Kaduna, Nigeria.
Am looking forward to seeing you, Prof.

[lesliethompson]

Production Theory test for my Public Policy Grad Micro class on Monday. THANK YOU MIT for your Been using your lectures all semester to supplement my learning.

[akolonomics]

Thank you so much professor. I have clearly understood the topic of production theory.
Hope to pass my MA exam with flying colours at the University of Nairobi, Kenya.

[arinzechukwubuike]

This course in now getting interesting. I must complete it.

[anmolagrawal]

00:00 Introduction to producer theory and maximizing profits through minimizing costs.
06:21 Short run production function: labor is variable, capital is fixed.
11:35 Understanding diminishing marginal product of labor and long run production
17:13 Understanding the Marginal Rate of Technical Substitution
22:51 Returns to scale in production
27:50 Returns to scale must decrease eventually
32:23 Productivity and innovation drive economic growth
37:30 Productivity innovation is key to determining a country's standard of living.
42:41 Productivity growth has slowed down since 1973, raising questions about its measurement, utilization, and distribution.
47:07 Productivity gains have only benefited the top 20% of income distribution.

[londonlife]

thank you for allowing all to watch these lectures which are really really helpful and the lecturers are also very good even after paying thousands of pounds to university I have not learnt about these

[oladeleluqmon]

These lectures are priceless. God bless MIT.

[Khanzadi-ndwv]

I am from Pakistan
And your teaching ability is just marvelous 👌🏼🤗...Thanks for being helping me to understand microeconomics 🙌🏼

[ryanhachey]

“Let’s think of two perfectly substitutable inputs. A Harvard graduate and a beanie baby.”

[eduardoabreu]

Super helpful and complete class. Grateful for the content. Keep improving!

[lucianomoraes]

Thank MIT for providing this kind of lecture and free-for-all community. This is a real democratization for everyone.

[joshuaaruokhai]

i love Prof. Gruber's teachings, so concise and informative

[hanyeoreum]

R.I.P for the chalks from his classes...8:19

[nox]

I propose a thesis that return of scale can be strictly increasing in areas of production that does not produce a physical product but a service that is not limited to physical resources or even manual labour.

[sleepycritical]

Did he just say "how much shit we have" at around the 40 min mark? Gotta be the coolest Prof I've ever seen.

[raghunathnandi]

I love you sir u are a perfect professor, i even not a student of economics understand clearly

[DenBorchev]

On 44:15 "We don't really know [why productivity growth slowed past 2005]":
- By December 2005, Facebook had 6 million users.
- Twitter created in early 2006
- Youtube founded in February 2005

Th internet has not been the same ever since.