生产者理论知识.pptxVIP

The Firm: ProductionAdvanced MicroEconomics In this lecture we set out some of the elements needed for an analysis of the firmTechnical efficiencyReturns to scaleConvexitySubstitutabilityMarginal products...and (for next time) assuming a competitive environment.We do it within the context of a single-output firm...But first we need the building blocks of a model...The basics of production... ziamount of input iQamount of outputThe basics of production...input vector z := (z1 ,z2 ,...,zm) wiprice of input iw := (w1 ,w2 ,...,wm)input price vector Pprice of outputNotation: Prices Q ￡ G(z1, z2, ...., zm )The single-output production function Written more compactlyQ ￡ G(z)technologyoutputYes, but why not = sign here?inputsThe meaning of the functionthe maximum amount of output that can be producedfrom this list of inputsUse this relation to distinguish two cases...Components of the relationship Q G(z)Q = G(z)21The case where production is technically efficientThe case where production is (technically) inefficientTechnical efficiency ?G(z) ?zi____iG (z) := where differentiableSome handy notation... z2Qz10 G(z , z ) 1 2outputinput 2input 1Q G(z , z )1 2Feasible, but inefficient pointsQ G(z , z )1 2infeasiblepointsQ = G(z , z )1 2technically efficient pointsNow let’s slice this set up to get some useful toolsThe full production function Pick a particular output level QZ(Q) := {z: G(z)3Q}Find a feasible input vector z G(z) 3 QRepeat to find all such input vectorsInput requirement sets Z(Q) := {z: G(z)3Q}the set of input vectors that meet the technical feasibility condition for output level Q......but what would Z look like??This depends on the assumptions we make about production...First, a “standard” case...?What is this thing...? z1z2G(z , z ) =`Q1 2 infeasible points _ Z(Q)technically efficient points feasible, but inefficient pointsG(z , z ) `Q1 2G(z , z ) `Q1 2The input requirement set: z1z2