In these videos, we discuss production theory. We answer questions such as, what is meant by production function? Are all the inputs feeding into production function, variable or some of them are fixed? This leads us to distinction between short run and long run.
We find how producer produces efficiently in both SR and LR? What is meant by efficiency in production? What are isoquants and isocost lines? What are the properties of Isoquants? Then we discuss different types of isoquants and their MRTS? Why MRTS fall along an isoquant (generally)?
Lastly, we discuss the concept of returns to scale, with the help of a graph and numerical example
I hope you like these videos!
Introduction to producer theory
Production function, average product, marginal product
Diminishing Marginal Productivity
Short run and Long Run production, Isoquants and MRTS
Returns to scale