Advanced icroeconomic (lecture Is production theory I Ye Jianliang (叶建亮)
Advanced Microeconomics (lecture 1: production theory I) Ye Jianliang(叶建亮)
Summary o textbook, Varian, HaIR 1992, Microeconomics Analysis, 3rd ed Mas-Colell M. Whinston, and ], 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 questions coming from the assignments lecture 1 for Chu Kechen Honors College
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 questions coming from the assignments
The Basic Framework of Microeconomics pply Demand Market ITechnology Preference Equilibrium Choice Choice (production) (purchase) lecture 1 for Chu Kechen Honors College
lecture 1 for Chu Kechen Honors College The Basic Framework of Microeconomics Technology Preference Choice (production) Choice (purchase) Supply Demand Market Equilibrium
Technology o 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
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
1. Production set Production plan(production vector, or input-output vector): y=(,y2," ...,yn) Production set Y: all technological feasible 艺Y={y∈界?" y are technologically feasible} o 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
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. 1 2 ( , , , ) n y = y y y { : are technologically feasible} n Y y y =