{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Ami Pro - LN050911

# Ami Pro - LN050911 - Economics 113 University of California...

This preview shows pages 1–2. Sign up to view the full content.

Lecture Notes, May 9, 2011 --- Part 1 General Equilibrium in an Economy with unbounded technology sets Delete P.VI (bounded j ). Like all good mathematicians, we're reducing this to the previous case. Under assumptions of No Free Lunch (P.IV(a)) and Irreversibility (P.IV(b)), the attainable output set for the economy and for each firm is still bounded. P.IV. (a) if for some k. y Y and y 0, then y k 0 (b) if . y Y and y 0, then y Y Let firm j's (unbounded) production technology be Y j . Define S j (p) as j's profit maximizing supply in Y j . Define D i (p) as i's demand without restriction to {x| |x| c} and with income M i (p)= . Note that S j (p) and D i (p) p r i j ij j p may not be well defined. Define = Y j {x| |x| c}, substitute for j in chapters 11 - 14. Define (p) Y j Y j S j as j's supply function based on . Y j Theorem 15.3(b): If (p) is attainable, then S j (p) = (p). S j S j Theorem 16.1(b): If M i (p) = , and (p) is attainable, then (p) = D i (p). M i p D D Z(p) = i D i (p) -

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}