中级微观经济学Ch .pptVIP

Chapter 18Technology Structure of Chapter 18 18.1 How to describe technology? Production set and production plan Production function 18.2 Isoquant (等产量线) and technical rate of technologies (TRS 技术替代率) 18.3 Examples of Technologies 18.4 Short run and long run 18.5 Production in the short run: Marginal product (MP) and diminishing MP 18.6 Production in the long run: Returns to scale (规模报酬) 18.1 How to Describe Technology? Production is a process by which inputs are converted to an output. Inputs (factors of production): land, labor, capital and raw materials. Output and inputs are flows. Technologies: different ways of producing (different combinations of inputs). Production Set and Production Plan Production set (生产集 Y): The set of all combinations of inputs and outputs that are technically feasible. A production plan (生产计划 y) is a vector of inputs and outputs that are technically feasible, y =(y1, y2,…yn). yi0, input; yi0 output. Production Function Production function: shows the relationship between inputs and the maximum output under a given technology. here, y?0, xi ?0. Production Function: another definition Production function is the boundary of production set. If a firm produce one output using n inputs, then the production set is Y={(x1, x2, … , xn, y) I y? f(x1,x2,…xn) and x1?0, …, xn?0} Technically Efficient and Inefficient Production Plans 18.2 Isoquant (等产量线) and Technical Rate of Substitution (技术替代率) Isoquant: a curve shows all combinations of inputs that can be used to produce the same level of output. The complete collection of isoquants is the isoquant map. The isoquant map is equivalent to the production function. Well-behaved Isoquant An isoquant is well-behaved if the technology is monotonic, and convex. Properties of Technology Monotone (free disposal): If you increase the amount of at least one of the inputs, it should be possible to produce at least as much output as you were producing originally. Convexity: If the input