# Varian - Microeconomic Analysis

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Microeconomics Textbook

### Text of Varian - Microeconomic Analysis

• Lee Ines NicoleSmall 'y' = production plan

Big 'Y' = production possibilities set

• Lee Ines NicoleV(y) = input requirement set

V(y) measures inputs as positive, not negative, numbers

• Lee Ines NicoleConvexity of input requirements set

• Lee Ines NicoleSOCs for profit max'zn

• Lee Ines NicoleCD production fct

• Lee Ines NicoleHOD 0 Property

Lee Ines NicoleHOD 0 is necessary condition for profit maxim'zn.

• Lee Ines Nicole?? How to deduce from this that Hessian Matrix is strictly ND?

• Lee Ines NicoleProperties of the substitution matrix

• Lee Ines NicoleWAPM

• Lee Ines NicoleImplications of WAPM

• Lee Ines NicoleRecoverability: constructing a technology consistent with the observed choices.

If a set of data satisfies WAPM, we can always find a technology for which the observed choices are profit-maximizing.

• Lee Ines NicoleProperties of the Profit Function

• Lee Ines NicoleHotelling's Lemma

• Lee Ines NicoleApplying the envelope theorem to derive Hotelling's lemma

• Lee Ines NicoleWhy matrix of derivatives of y is symmetric and PSD.

• Lee Ines NicoleLee Ines Nicole 15 December, 2014 8:50 PM

• Lee Ines NicoleCD example

• Lee Ines NicoleCES example

• Lee Ines NicoleConditional Factor Demand

• Lee Ines NicoleProof that the conditional factor demand curve slopes downwards.

• Lee Ines NicolePrinciple of duality: any concept defined in terms of the properties of the production function has a "dual" definition in terms of the properties of the cost function and vice versa.

• Lee Ines NicoleMoney Metric Utility Functions

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