文档介绍：Chapter Eighteen
Technology
Technologies
A technology is a process by which inputs are converted to an output.
. labor, puter, a projector, electricity, and software are bined to produce this lecture.
Technologies
Usually several technologies will produce the same product -- a blackboard and chalk can be used instead of puter and a projector.
Which technology is “best”?
How do pare technologies?
Input Bundles
xi denotes the amount used of input i; . the level of input i.
An input bundle is a vector of the input levels; (x1, x2, …, xn).
. (x1, x2, x3) = (6, 0, 9×3).
Production Functions
y denotes the output level.
The technology’s production function states the maximum amount of output possible from an input bundle.
Production Functions
y = f(x) is the
production
function.
x’
x
Input Level
Output Level
y’
y’= f(x’) is the maximal output level obtainable from x’ input units.
One input, one output
Technology Sets
A production plan is an input bundle and an output level; (x1, …, xn, y).
A production plan is feasible if
The collection of all feasible production plans is the technology set.
Technology Sets
y = f(x) is the
production
function.
x’
x
Input Level
Output Level
y’
y”
y’= f(x’) is the maximal output level obtainable from x’ input units.
One input, one output
y”= f(x’) is an output level that is feasible from x’ input units.
Technology Sets
The technology set is
Technology Sets
x’
x
Input Level
Output Level
y’
One input, one output
y”
The technology set