2.5 — Short Run Profit Maximization — Class Content
Problem Set 3 (on classes 2.1-2.3) is due by 11:59 PM Wednesday March 22 on Blackboard Assignments.
Problem Set 4 (on classes 2.4-2.6) is due by 11:59 PM Wednesday March 29 on Blackboard Assignments.
Overview
Today we briefly discuss revenues before we put them together to solve the firm’s profit maximization problem. We focus on the short run, where the firm incurs fixed costs and must stay in the market regardless. We derive the firm’s (inverse) supply curve.
Next class will be about the long run, and finish up unit 2.
Readings
- Ch. 8.1-8.3 in Goolsbee, Levitt, and Syverson, 2019
Practice
Today we will be working on practice problems. Answers will be posted later on that page.
Appendix
See the online appendix for today’s content:
Assignments
Problem Set 3 Due Wednesday March 22
Problem Set 3 (on classes 2.1-2.3) is due by 11:59 PM Wednesday March 22 on Blackboard Assignments.
Problem Set 4 Due Wednesday March 29
Problem Set 4 (on classes 2.4-2.6) is due by 11:59 PM Wednesday March 29 on Blackboard Assignments.
Slides
Below, you can find the slides in two formats. Clicking the image will bring you to the html version of the slides in a new tab. The lower button will allow you to download a PDF version of the slides.
You can type h to see a special list of viewing options, and type o for an outline view of all the slides.
I suggest printing the slides beforehand and using them to take additional notes in class (not everything is in the slides)!
