lecture12full

lecture12full - Get the supply function by substituting...

Info iconThis preview shows pages 1–13. Sign up to view the full content.

View Full Document Right Arrow Icon
Recap 1 Two individuals whose incomes were functions solely of their endowments 2 Used Edgeworth boxes to show: Gains from trade Pareto efficient points The core 3 Solved for market clearing prices 4 First and Second Welfare Theorems 5 The shrinking core
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Short Run Profits π = px - wl
Background image of page 2
Production x = f ( l )
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Law of Diminishing Marginal Product
Background image of page 4
Profit maximization max x , l px - wl subject to x = f ( l )
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Input demands Property 1: HD0 in prices Property 2: Decreasing in own-input price
Background image of page 6
Supply function
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 8
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 10
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 12
Background image of page 13
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Get the supply function by substituting input demands into the production function. Profit function Get the profit function by substituting input demands and the supply function into profits. Hotelling’s Lemma Variable Costs and Profits max x px-c ( w , x ) Marginal Costs and Average Variable Costs Production and Multiple Inputs x = f ( l , k ) Profit Maximization with Multiple Inputs...
View Full Document

This note was uploaded on 05/13/2010 for the course ECON 105D taught by Professor Cur during the Fall '09 term at Duke.

Page1 / 13

lecture12full - Get the supply function by substituting...

This preview shows document pages 1 - 13. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online