My apologies that we can’t meet in person anymore – as the university is now running classes online due to the COVID-19 quarantine. You will have seen that the lectures are already online – feel free to watch them when you can. Lecture 7 slides are here and Lecture 8 slides are here.
This week we are switching from thinking about consumers to thinking about producers. Instead of asking why someone may purchase a product, or select a set of products from an available set, we are asking about the incentive to sell those products.
As is the case with consumer theory we leave prices fixed for now so we can focus on where the scarcity is and what incentives the producer has.
This week we focused solely on costs – lets talk a bit more about those. Specifically I want to summarise some of the ideas we covered in a different way (starting at the end of the 8th lecture rather than the start of the 7th) to hopefully help tie everything together.Read more