03. Firm

The Classical Firm

002: A Perfect Production Function This video reproduces Solow’s perfect production function.
001: The Inconsistent Theory of the Firm This video works out the inconsistency problem of the neoclassical production theory.
277: Indeterminate Output This video proves the neoclassical theory of the firm produces indeterminately.
284: Bankrupting Production This video shows how a neoclassical firm goes bankrupt.

The Neoclassical Firm

137: U Production This video proves that the u-production model is a broken theory.
287: U Production II This video tries to reproduce the U-shaped production model.
278: CRS Copying This video proves the neoclassical theory of the firm produces by copying.
285: Scale This video rediscovers the scale variable.
286: Scale II This video proves that even scale must reach an equilibrium.


083: Location Choice IV This video proves the first theorem of Hotelling’s spatial competition game, equi-distance.
098: Location & Production Cost II This video proves that production cost does not raise Hotelling’s profit.
226: Networking I This video disproves the networking demand curve by Katz and Shapiro.
228: Networking III This video proves that Counot’s networking theory is self destructive.


140: Stupid Labor Theory This video shows that Ricardo’s labor theory is both stupid and fatal.
364: In House Training IV This video shows that Becker finds no money to finance training.
368: Signaling I This video reproduces Spence’s Signaling theory.
371: Signaling IV This video disproves the cost part of Spence’s signalling theory.
064: Agency Dilemma I This video proves that the manager would embezzle the whole pie, had he had his own indifference curve.
065: Agency Dilemma II This video proves that the manager might embezzle more than the whole pie, if embezzlement price could be made lower.
328: GH II This video tells the difference between the theory of the firm and bargaining.


279: Natural vs. Money i This video disproves Wicksell’s theory of interest
281: Re-switching II This video reproduces Samuelson’s theory of re-switching.
282: Re-switching III This video proves that Samuelson’s theory of re-switching is an investment evaluation.

Pricing Policy

122: Monopoly I This video reproduces Stigler’s proof that monopoly loss is miserably small.
110: Kinked Demand I This video proves that the kinked demand model has too many optimal points.
111: Kinked Demand II This video proves that the monopolist demand curve in the kinked demand model is redundant.
302:Price Discrimination II

This video shows a counter-intuitive price discrimination theory.

036: Timing of Payment I This video shows that the timing-of-payment model must first solve the bargaining problem, or a common price for the buyer and the seller.


266: Corporate Finance I This video reproduces the MM theorem of corporate finance.
267: Corporate Finance II This video disproves the MM theorem


003: Marginal Product is not Demand This video proves that marginal product or utility is not demand, and that marginal cost is not supply.
350: Marginalism III This video disproves marginal cost being supply.
355: Marginalism VIII This video rejects marginal cost in favour of price supply.
383: U Production IV

This video reproduces a u-shaped curve.

288: U Production III This video disproves the u-production model.
384: U Production V This video further disproves the u-production model.