Since Marshall, the standard approach to developing a theory of competitive mar-kets is to separate demand behavior (“consumer theory”) from supply behavior (“producer theory”) and …

生产集（production set）：所有技术上可行的生产计划。 Y = \{y : F(y) ≤ 0\} F(y) ≤ 0 ：转换函数（transformation function） \{y ∈ R^L : F(y) = 0\} ：转换前沿（transformation frontier， Y 的边 …

Production is the transformation of a vector of commodities into a different vector of commodities. Why do firms exist? What determines their boundaries? Economists understand more about …

2018年10月17日 · The set of weighted average of these two vectors can be written as follows. z z zO (1 )OO01, 01 O Such averages where the weighs are both strictly positive and add to 1 are …

A production set or technology set is a set Y ⊂ Rm that obeys properties (T1)–(T5). In other words, it is non-empty, closed, and satisfies the no free lunch,

7. Convex - Drawing Technology Set - Input Requirement Set Input Requirement Set - using specific vector, y(q,x) (instead of netput vector); fix output vector q and find all input vectors x …

convex set: contains line segment between any two points in the set x 1 ,x 2 ∈ C, 0 ≤ θ ≤ 1 =⇒ θx 1 +(1−θ)x 2 ∈ C examples (one convex, two nonconvex sets)

If Y is convex, then y(p) is a convex set for all p. If Y is strictly convex, then y(p) is single-valued (if nonempty).

† production set P: resource vectors x for all possible production methods † e–cient (Pareto optimal) methods correspond to resource vectors x that are minimal w.r.t. R n

Proposition (2ndFundamental Welfare Theorem - production side) Suppose Yis convex, closed and satisfies free-disposal property. Then every efficient production y∈Yis a profit …