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Text and anti-text in teaching the economics of the firm

Author

Listed:
  • Rod Hill
  • Tony Myatt

Abstract

How can an instructor facilitate a critical examination of the theory of the firm found in mainstream microeconomics principles texts? We suggest not presenting a single alternative paradigm, where students might feel constrained to choose one over the other, but rather an 'anti-text' that shows a variety of different critical perspectives. The limitations as well as the ideology of the mainstream texts are revealed both by what they say and what they don't, by the evidence that is ignored and by the myths that are perpetuated. Attempts by firms to influence consumer demand and the legal, regulatory and political environment are off limits for mainstream texts; in addition firms such as non-profits and cooperatives are ignored. The focus is on the mythical perfectly competitive firm with 'u'-shaped costs, constricting it to remain a small, powerless, price-taking entity.

Suggested Citation

  • Rod Hill & Tony Myatt, 2012. "Text and anti-text in teaching the economics of the firm," International Journal of Pluralism and Economics Education, Inderscience Enterprises Ltd, vol. 3(2), pages 144-144.
    • Handle: RePEc:ids:ijplur:v:3:y:2012:i:2:p:144-144
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