Week 5_Technology (Print)

# Y x y x monotonic not monotonic assumptions on

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y x y x monotonic not monotonic

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Assumptions on Technologies - Convexity Convexity : 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.
Assumptions on Technologies - Convexity x 2 x 1 x 2 ' x 1 ' x 2 " x 1 " y ≡ 100

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Assumptions on Technologies - Convexity x 2 x 1 x 2 ' x 1 ' x 2 " x 1 " ( 29 tx t x tx t x 1 1 2 2 1 1 ' " ' " ( ) , ( ) + - + - y ≡ 100
Assumptions on Technologies - Convexity x 2 x 1 x 2 ' x 1 ' x 2 " x 1 " ( 29 tx t x tx t x 1 1 2 2 1 1 ' " ' " ( ) , ( ) + - + - y ≡ 100 y ≡ 120

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Assumptions on Technologies - Convexity x 2 x 1 x 2 ' x 1 ' x 2 " x 1 " Convexity implies that the TRS increases (becomes less negative) as x 1 increases.
Assumptions on Technologies x 2 x 1 y ≡ 100 y ≡ 50 y ≡ 200 higher output
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