文档介绍：Advanced Microeconomics (lecture 2: production theory II)
Ye Jianliang
lecture 2
for Chu Kechen Honors College
profit maximization
Contain:
Some definition
Isoprofit curve
Demand function and it’s properties
supply function and it’s properties
Profit function and it’s properties
lecture 2
for Chu Kechen Honors College
definition
Basic assumption:
Y is changeless, no technical improvement.
The firm is the price taking.
Profit function:
When it is one production:
lecture 2
for Chu Kechen Honors College
2. Isoprofit curve
The profit :
We then got the isoprpfit curve .
Then and is negative semidifinite.
q
x
x*
lecture 2
for Chu Kechen Honors College
curve
Weak Axiom of Profit Maximization (WAPM) if ys, yt are in Y, and choice by firm under price ps and pt. then . we can get: or
价格上升,最优产量也上升
lecture 2
for Chu Kechen Honors College
2. Isoprofit curve
y1
y2
x
q
y1
y2
x
q
lecture 2
for Chu Kechen Honors College
2. Isoprofit curve
y1
y2
x
q
y1
y2
x
q
YI
YO
lecture 2
for Chu Kechen Honors College
function
factor demand function (set):
proposition5: it’s homogenous of degree zero.
lecture 2
for Chu Kechen Honors College
function
One production: regular p as 1. let x(,w) be the profit maximization choice (function means x is single point under w) of input factor vector under factor price w. then must hold:
注意:这两条式子成立的条件是one production
lecture 2
for Chu Kechen Honors College
function
When , differentiate with respect to w, we get:
or
Substitution matrix is a symmetric negative matrix.
1.
2.
lecture 2
for Chu Kechen Honors College