This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: Lecture Notes on Production and Cost Functions Ted Bergstrom UCSB Econ 210A A very general model of production possibilities can be described as follows: Suppose that there are m goods, some of which may be used as inputs in pro duction, some of which may be produced as outputs, and some of which may be either inputs or outputs, depending on the process chosen. Let Y f be a set in < m and for any vector ( y 1 ,...,y m ) ∈ Y f , represent a feasible production plan . We interpret y i denote the “net output” of good i in the plan y . If y i is negative, then i is an input for this plan, and if y i is positive, i is an output. Some feasible processes may have more than one output as well as more than one input. Dynamic models in which time plays a significant role in production can be represented in this framework if we treat commodities of the same type that appear at different dates as distinct dated commodities....
View
Full
Document
This note was uploaded on 02/01/2011 for the course ECONOMY 6 taught by Professor Fallahi during the Spring '10 term at Cambridge.
 Spring '10
 fallahi

Click to edit the document details