文档介绍：Advanced Microeconomics (lecture 1: production theory I)
Ye Jianliang(叶建亮)
lecture 1
for Chu Kechen Honors College
Summary
textbook:
Varian, Hal R., 1992, Microeconomics Analysis, 3rd ed.
Mas-Colell, A., M. Whinston, and J. Green, 1995, Microeconomics Theory.
assignments:
twice a week;
Team work;
Deliver on the class.
examinations:
Mid-term: by the assignments;
Final-term: 80% of the ing from the assignments.
lecture 1
for Chu Kechen Honors College
The Basic Framework of Microeconomics
Technology
Preference
Choice
(production)
Choice
(purchase)
Supply
Demand
Market
Equilibrium
lecture 1
for Chu Kechen Honors College
Technology
Contain:
“production (possibilities) set”(PS) and “production function”;
Properties of the “PS”;
Technical rate of substitution;
Returns to scale.
lecture 1
for Chu Kechen Honors College
1. Production set
Production plan (production vector, or input-output vector):
Production set Y: all technological feasible y.
Restricted production set Y (z):
Some of yi in y are restricted on z .
Short-run production set.
lecture 1
for Chu Kechen Honors College
1. Production set
Input requirement set:
All yi in y are negative, let them be –x (then x is positive), and the rest yj to be q .
So, and , and
the input requirement set is :
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1. Production set
Transformation function:
and satisfied
if and only if y is technologically efficient, then
y2
y1
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set
Production function:
If O = 1,and I = n - 1, then:
means:
Isoquant:
Question1: calculate the PS, RS, TF, PF, Isoquant of Cobb-Douglas technology and Leontief technology.
lecture 1
for Chu Kechen Honors College
of PS.
Y is nonempty: we have something to do.
Y is close: Y contain it’s boundary,
No free lunch:
See the fig.
Free disposal:
See the fig.
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for Chu Kechen Honors College
of PS.
Additive (free entrance) :
Convexity:
See