生产者理论知识(ppt 36页)
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The basics of production...
Notation: Prices
The single-output production function
Written more compactly
Technical efficiency
Some handy notation...
The full production function
Input requirement sets
What is this thing...?
The input requirement set:
Case 1: Z is smooth and strictly convex
Case 2: Z convex but not strictly convex
Case 3: Z is smooth but not convex
An Example...
Case 4: Z is convex but not smooth
Summary: 4 possibilities for the input requirement set Z
Isoquants
The isoquant is the boundary of Z
Marginal rate of technical substitution
A constant elasticity of substitution:
Homothetic contours
Contours of a homogeneous function
Let's rebuild from the isoquants
Proportional increase in all inputs
Take a "horizontal"section...to get the isoquant again
Now take a "vertical" section...
Marginal products
Let's take the conventional case…
Take the relationship between output and input 1...
Marginal product
Key concepts
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