Microeconomics I partie 5/9
Fiches de révisions
Fiches de révisions
Set of flashcards Details
| Flashcards | 40 |
|---|---|
| Language | English |
| Category | Macro-Economics |
| Level | University |
| Created / Updated | 06.06.2019 / 02.10.2023 |
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Economic profit
Long run VS short run
Short run: At least one factor of production is fixed
Long run: All factors of production are variable
A well-behaved technology is
I convex: if the input bundles x' and x'' both provide y units of output then the mixture tx' + (1-t)x'' provides at least y units of output, for any 0 < t < 1
I monotonic: more of any input generates more output
Diminishing Technical Rate of Substitution
(marginal) Technical Rate of Substitution (TRS)
Examples of return to scale: Cobb-Douglas
Examples of return to scale: fixed proportions and perfect substitutes
Difference between marginal product and return to scale
Marginal products describe the change in output level as a single input level changes
Returns-to-scale describes how the output level changes as all input levels change in direct proportion (e.g. all input levels doubled, or halved)
Check if diminishing marginal product
Derive twice the production function
Diminishing marginal product
Marginal product of factor
Examples of technology
Utility maximization VS cost minimization
Isocost line
Cost minimization problem
Explaining AVC according to MC
Long-run profit maximization problem
Cost minimization with Cobb-Douglas technology part2
Cost minimization with Cobb-Douglas technology part1
Long run profit maximization with Cobb-Douglas technology
Cost minimization with perfect substitutes technology
Cost minimization with fixed proportions technology
Output expansion path
Cost minimization
Long run profit maximization graph
Long run profit maximization
Exercise 2: Short-run profit maximization with Cobb-Douglas technology
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