中级微观课件·范里安版第18章讲义幻灯片.ppt

Well-Behaved Technologies - Convexity x2 x1 Convexity implies that the TRSincreases (becomes lessnegative) as x1 increases. Well-Behaved Technologies – Monotonicity and convexity x2 x1 yo100 yo50 yo200 higher output The Long-Run and the Short-Runs The long-run is the circumstance in which a firm is unrestricted in its choice of all input levels. There are many possible short-runs. A short-run is a circumstance in which a firm is restricted in some way in its choice of at least one input level. The Long-Run and the Short-Runs Examples of restrictions that place a firm into a short-run: temporarily being unable to install, or remove, machinery being required by law to meet affirmative action quotas having to meet domestic content regulations. The Long-Run and the Short-Runs What do short-run restrictions imply for a firm’s technology? Suppose the short-run restriction is fixing the level of input 2. Input 2 is thus a fixed input in the short-run. Input 1 remains variable. The Long-Run and the Short-Runs x1 y Four short-run production functions. The Long-Run and the Short-Runs is the long-run productionfunction (both x1 and x2 are variable). The short-run production function whenx2 o 1 is The short-run production function when x2 o 10 is The Long-Run and the Short-Runs x1 y Four short-run production functions. Returns-to-Scale If, for any input bundle (x1,…,xn), then the technology exhibits diminishingreturns-to-scale （规模报酬递减）.E.g. (k = 2) doubling all input levels less than doubles the output level. Returns-to-Scale y = f(x) x’ x Input Level Output Level f(x’) One input, one output 2x’ f(2x’) 2f(x’) Decreasingreturns-to-scale Returns-to-Scale If, for any input bundle (x1,…,xn), then the technology exhibits increasingreturns-to-scale （规模报酬递增）.E.g. (k = 2) doubling all input levelsmore than doubles the output level. Returns-to-Scale y = f(x) x’ x Input Level Output Level f(x’) One input, one output 2x’ f(2x’) 2f(x’) Increasingretur