Lec 7 - Lecture 3 (Turbo) - Industry Supply and Rents. ECON 20100: The Elements of Economic Analysis E. Glen Weyl, Assistant Professor of Economics and the College "Industry Supply and Rents." The first part of this course discusses markets with one or a few suppliers. The second part focuses on demand and supply for factors of production and the distribution of income in the economy. This course also includes some elementary general equilibrium theory and welfare economics. This lecture considers the different talents and abilities of individual firms and how they generate an industry supply. We begin by deriving the basic concepts of industry supply from individual firm supply and producer surplus. We then turn to the notion of long-run industry supply, contrasting the traditional view that competition erodes profits to the importance of rare talents and superstars. Finally we discuss prominent empirical regularities about the distribution of talents, such as power laws and particularly Zipf's law. For readings associated with this lecture and slides, visit: http://www.glenweyl.com/teaching
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