 Advanced Microeconomics at Universität Zu Kiel | Flashcards & Summaries

# Lernmaterialien für Advanced Microeconomics an der Universität zu Kiel

Greife auf kostenlose Karteikarten, Zusammenfassungen, Übungsaufgaben und Altklausuren für deinen Advanced Microeconomics Kurs an der Universität zu Kiel zu.

TESTE DEIN WISSEN

How is the economic profit defined?

Lösung anzeigen
TESTE DEIN WISSEN

Revenue of a firm minus its costs

Lösung ausblenden
TESTE DEIN WISSEN

What is the production function?

Lösung anzeigen
TESTE DEIN WISSEN

f(x) = {y e R: y is the max. ouput associated with (y,-x) e Y}

Lösung ausblenden
TESTE DEIN WISSEN

What does convex technology mean?

Lösung anzeigen
TESTE DEIN WISSEN

Convexity means: If x

and x‘‚ are in V(y), then

tx + (1-t)x' is in V(y)

for all 0≤ t ≤ 1.

V(y) is a convex set.

Lösung ausblenden
TESTE DEIN WISSEN

When do we have constant returns to scale?

Lösung anzeigen
TESTE DEIN WISSEN

We have constant returns to scale if any of the following are satisfied:

1. y e Y implies ty e Y, for all t ≥ 0

2. x e V(y) implies tx e V(y) for all t ≥ 0

3. f(tx)=tf(x) for all t ≥ 0; i.e. the production function is homogeneous of degree 1.

Lösung ausblenden
TESTE DEIN WISSEN

When do we have increasing returns to scale?

Lösung anzeigen
TESTE DEIN WISSEN

We have increasing returns to scale if f(tx) > tf(x) for all t > 1

Lösung ausblenden
TESTE DEIN WISSEN

When do we have decreasing returns to scale?

Lösung anzeigen
TESTE DEIN WISSEN

We have decreasing returns to scale if f(tx) < tf(x) for all t > 1

Lösung ausblenden
TESTE DEIN WISSEN

What behavioral assumption is used for analyzing firms?

Lösung anzeigen
TESTE DEIN WISSEN

We use the assumption of profit maximization.

Lösung ausblenden
TESTE DEIN WISSEN

What is the technical rate of substitution?

Lösung anzeigen
TESTE DEIN WISSEN

In the two output case it is equivalent to the slope of the isoquant:

how one has to adjust x2 to keep output constant when x1 changes by a small amount.

Lösung ausblenden
TESTE DEIN WISSEN

What does the factor demand function present?

Lösung anzeigen
TESTE DEIN WISSEN

The factor demand function gives us the optimal choice of inputs as a function of the prices. It is denoted by x(p,w)

Lösung ausblenden
TESTE DEIN WISSEN

What is the supply function of the firm?

Lösung anzeigen
TESTE DEIN WISSEN

y(p,w) = f(x(p,w)

Lösung ausblenden
TESTE DEIN WISSEN

What do we assume about the factor demand and supply function?

Lösung anzeigen
TESTE DEIN WISSEN

We assume they are well defined and nicely behaved.

Lösung ausblenden
TESTE DEIN WISSEN

What is the implicit assumption when we have monotonicity of a production function?

Lösung anzeigen
TESTE DEIN WISSEN

We implicilty assume free disposal of inputs is possible.

Lösung ausblenden • 66054 Karteikarten
• 1195 Studierende
• 19 Lernmaterialien

## Beispielhafte Karteikarten für deinen Advanced Microeconomics Kurs an der Universität zu Kiel - von Kommilitonen auf StudySmarter erstellt!

Q:

How is the economic profit defined?

A:

Revenue of a firm minus its costs

Q:

What is the production function?

A:

f(x) = {y e R: y is the max. ouput associated with (y,-x) e Y}

Q:

What does convex technology mean?

A:

Convexity means: If x

and x‘‚ are in V(y), then

tx + (1-t)x' is in V(y)

for all 0≤ t ≤ 1.

V(y) is a convex set.

Q:

When do we have constant returns to scale?

A:

We have constant returns to scale if any of the following are satisfied:

1. y e Y implies ty e Y, for all t ≥ 0

2. x e V(y) implies tx e V(y) for all t ≥ 0

3. f(tx)=tf(x) for all t ≥ 0; i.e. the production function is homogeneous of degree 1.

Q:

When do we have increasing returns to scale?

A:

We have increasing returns to scale if f(tx) > tf(x) for all t > 1

Q:

When do we have decreasing returns to scale?

A:

We have decreasing returns to scale if f(tx) < tf(x) for all t > 1

Q:

What behavioral assumption is used for analyzing firms?

A:

We use the assumption of profit maximization.

Q:

What is the technical rate of substitution?

A:

In the two output case it is equivalent to the slope of the isoquant:

how one has to adjust x2 to keep output constant when x1 changes by a small amount.

Q:

What does the factor demand function present?

A:

The factor demand function gives us the optimal choice of inputs as a function of the prices. It is denoted by x(p,w)

Q:

What is the supply function of the firm?

A:

y(p,w) = f(x(p,w)

Q:

What do we assume about the factor demand and supply function?

A:

We assume they are well defined and nicely behaved.

Q:

What is the implicit assumption when we have monotonicity of a production function?

A:

We implicilty assume free disposal of inputs is possible. ### Erstelle und finde Lernmaterialien auf StudySmarter.

Greife kostenlos auf tausende geteilte Karteikarten, Zusammenfassungen, Altklausuren und mehr zu.

## Das sind die beliebtesten Advanced Microeconomics Kurse im gesamten StudySmarter Universum

##### Microeconomics

Hochschule Rhein-Waal

##### Microeconomics

University of Abuja

##### Microeconomics

Hochschule Pforzheim  