中微课件ch02章节幻灯片.pptVIP

* Homothetic Functions A homothetic function is one that is formed by taking a monotonic transformation of a homogeneous function（什么叫单调变化？） they do not possess the homogeneity properties of their underlying functions, but the implicit trade-offs among the variables, which depend only on the ratios of those variables, not on their absolute values * Homothetic Functions Suppose we are examining the simple, two variable implicit function f(x,y) = 0 The implicit trade-off between x and y for a two-variable function is dy/dx = -fx/fy If we assume f is homogeneous of degree k, its partial derivatives will be homogeneous of degree k-1 * Homothetic Functions The implicit trade-off between x and y is Let X= x/y, and we have * Important Points to Note: Derivatives are often used in economics because economists are interested in how marginal changes in one variable affect another partial derivatives incorporate the ceteris paribus assumption used in most economic models * Important Points to Note: The mathematics of optimization is an important tool for the development of models that assume that economic agents rationally pursue some goal the first-order condition for a maximum requires that all partial derivatives equal zero * Important Points to Note: Most economic optimization problems involve constraints on the choices that agents can make the first-order conditions for a maximum suggest that each activity be operated at a level at which the ratio of the marginal benefit of the activity to its marginal cost * Important Points to Note: The Lagrangian multiplier is used to help solve constrained maximization problems the Lagrangian multiplier can be interpreted as the implicit value (shadow price) of the constraint * Important Points to Note: The implicit function theorem illustrates the dependence of the choices that result from an optimization problem on the parameters of that problem * Important Points to Note: The envelope theorem examines how optimal choice