Ch18Technology(微观-范里安-(上海交通大学,赵旭).ppt

Chapter Eighteen Technology Technologies A technology is a process by which inputs are converted to an output. E.g. labor, a computer, a projector, electricity, and software are being combined to produce this lecture. Technologies Usually several technologies will produce the same product -- a blackboard and chalk can be used instead of a computer and a projector. Which technology is “best”? How do we compare technologies? Input Bundles xi denotes the amount used of input i; i.e. the level of input i. An input bundle is a vector of the input levels; (x1, x2, … , xn). E.g. (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 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 Technology Sets Technology Sets Technology Sets Technologies with Multiple Inputs What does a technology look like when there is more than one input? The two input case: Input levels are x1 and x2. Output level is y. Suppose the production function is Technologies with Multiple Inputs E.g. the maximal output level possible from the input bundle(x1, x2) = (1, 8) is And the maximal output level possible from (x1,x2) = (8,8) is Technologies with Multiple Inputs Technologies with Multiple Inputs The y output unit isoquant is the set of all input bundles that yield at most the same output level y. Isoquants with Two Variable Inputs Isoquants with Two Variable Inputs Isoquants can be graphed by adding an output level axis and displaying each isoquant at the height of the isoquant’s output level. Isoquants with Two Variable Inputs Isoquants with Two Variable Inputs More isoquants tell us more about the technology. Isoquants with Two Variable Inputs Isoquants with Two Variable Inputs Te