In this session, we continue this brief introduction to economics by discussing the theory as it relates to the Producer. What is it that motivates how much of a good is produced and ultimately decides the supply side of the economy.

Recommended reading: Varian Ch. 33, 36, 37

Before coming to Lecture 3, please:

Watch Clip 5 and part of Clip 6 (until 5:30min) and answer the short quiz.
- Clip 5: Producer Theory
- Clip 6: Market Equilibrium & Pareto Efficiency

Do Exercise 1 Part 1 (it will be marked right away in class)
Participate in this discussion forum according to the instructions in the forum.

We have also created an AI generated podcast giving a short summary of the Varian chapters and clips 2-4. You can find it here:

Best,
Jens

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