Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Technology
Technologies
A
Technologies
Usually
Input Bundles
xi
yf(x
x
)
1,
n
Production Functions
y
Production Functions
One input, one output
Output Level
y = f(x) is the
production
function.
x
Input Level
y
f(x
x
)
1,
n
Technology Sets
A
The
Technology Sets
One input, one output
Output Level
y
y = f(x) is the
production
function.
y = f(x) is the maximal
output level obtainable
from x input units.
y = f(x) is an output level
that is feasible from x
input units.
x
x
Input Level
{(x
,
x
,y
)|1
f
(0x
,
x
)
a
n
d
11
n
n
0}.
Technology Sets
Technology Sets
One input, one output
Output Level
y
The technology
set
y
x
Input Level
Technology Sets
One input, one output
Output Level
Technically
efficient plans
The technology
Technically set
inefficient
plans
x
Input Level
1
/
3
y
f(x
2x2.
1,2)
/y
1
3
1
/
3
1
/
3
2x
1
2
4
.
2
1/328
1/31/38
Technologies with Multiple Inputs
E.g.
And
y
x1
y
y
y
x1
a
a
1
2
n
y
A
x
x
.
1
/
3
y
x
2
1
1
n
2,,.
A
a
a
n
d
2
33
Cobb-Douglas Technologies
A
E.g.
with
a
12
y
Cobb-Douglas Technologies
x2
x1
in
m
{y
n
,2
,
a
x
a
x
}
.
1
2
n
i,a
m
{1x
n
2n
}d
1a
2.
2
Fixed-Proportions Technologies
A
fixed-proportions production
function is of the form
E.g.
with
y
m
in
{x
1,2}
Fixed-Proportions Technologies
x2
x1 = 2x2
7
4
2
4
min{x1,2x2} = 14
min{x1,2x2} = 8
min{x1,2x2} = 4
14
x1
a
x
a
x
a
x
.
1
2
n
y
3
x
1
2
n
2,a1a
n
d
3.
2
Perfect-Substitutes Technologies
A
perfect-substitutes production
function is of the form
E.g.
with
x
3x
1
2
Perfect-Substitution Technologies
x2
x1 + 3x2 = 18
x1 + 3x2 = 36
x1 + 3x2 = 48
8
6
3
18
24 x1
yfM
(x
,
)i
x
1P
n
xyi
1/32
y
f(x
,12)x
/1322
1
fM
y
(P
,11y
x
)123
x
/1322
1
fM
y
(P
,11y
x
)123
x
/12
1
3
2
fM
y
(P
,21x
x
)1y
x
23
1
2
2x
/31/3.
2
M
P
xixi yi
xyi0.
1
/
3
2
y
x
1
2
2
1
/
3
1
/
3
M
P
x
M
P
2
2
1
3
M
P
2
5
/
3
1
x
x
0
1
x
9
224.
Marginal (Physical) Products
E.g. if
then
and
so
and
Technical Rate-of-Substitution
At
'2x
x
'1
Technical Rate-of-Substitution
x2
y
x1
'2x
x
'1
Technical Rate-of-Substitution
x2
y
x1
Technical Rate-of-Substitution
How
is a technical rate-of-substitution
computed?
f
(
x
,
)
.
1
2
y
d
y
d
x
d
x
1
2.
Technical Rate-of-Substitution
How
is a technical rate-of-substitution
computed?
The production function is
A small change (dx1, dx2) in the input
bundle causes a change to the output
level of
y
d
y
d
x
d
x
.
1
2
y
0d
x
d
x
1
2.
Technical Rate-of-Substitution
y
0
d
x
d
x
1
2
2
1
x
x
d
/12.
y
Technical Rate-of-Substitution
rearranges to
so
d
x
/1
y
x
2
12
Technical Rate-of-Substitution
a
b
fd
(x
,12x
y
x
)
x
1
2
1
2
y
a
b
1
a
b
x
.
1
2
1
a
1
b
/
y
x
x
a
1
2
2
2
.
x
bb
1
Technical Rate-of-Substitution; A
Cobb-Douglas Example
so
and
1
2
/y
1
3
2
x
;
a
a
n
d
b
3
3
a
x
(
/
)
x
x
2
2
T
R
S
b
1211
Technical Rate-of-Substitution; A
Cobb-Douglas Example
x2
x1
1
2
/y
1
3
2
x
;
a
a
n
d
b
3
3
a
x
(
/
)
x
x
2
2
T
R
S
b
122
1
1
8
Technical Rate-of-Substitution; A
Cobb-Douglas Example
x2
x1
1
2
/y
1
3
2
x
;
a
a
n
d
b
3
3
a
x
(
/
)
x
x
2
2
T
R
S
b
122
1
1
6
24
Technical Rate-of-Substitution; A
Cobb-Douglas Example
x2
12
x1
Well-Behaved Technologies
A
well-behaved technology is
monotonic, and
convex.
monotonic
y
not
monotonic
x
'"
x
2
2x
'1x
"
1
Well-Behaved Technologies Convexity
x2
y
x1
'"
x
2
'"
'
"
t
x
(
1
t
)
x
,
(
1
t
)
x
1
1
2
2
2x
'1"
1
Well-Behaved Technologies Convexity
x2
y
x1
'"
x
2
'"
'
"
t
x
(
1
t
)
x
,
(
1
t
)
x
1
1
2
2
2x
'1"
1
Well-Behaved Technologies Convexity
x2
y
y
x1
'"
x
2
2x
'1x
"
1
Well-Behaved Technologies Convexity
x2
x1
Well-Behaved Technologies
higher output
x2
y
y y
x1
/y
1
3
x2yx11/3101/3x12/3.51/3
/
/x
1
3
1
3
yy
x
0
5
1/31
2
x1
Returns-to-Scale
Marginal
f(k
x
,k
x
)
k
f(x
,x
)
1,2
n
1,2
n
Returns-to-Scale
f(k
x
,k
x
)
k
f(x
,x
)
1,2
n
1,2
n
Returns-to-Scale
f(k
x
,k
x
)
k
f(x
,x
)
1,2
n
1,2
n
Returns-to-Scale
a
x
a
x
a
x
.
1
2
n
a
x
)
a
(k
x
)
a
(k
x
)
1(k
1
2
2
n
n
Examples of Returns-to-Scale
The perfect-substitutes production
function is
a
x
a
x
a
x
.
1
2
n
(
a
k
x
)
a
(k
x
)
(x
a
))
k
x
1
1
2
2
n
n
Examples of Returns-to-Scale
The perfect-substitutes production
function is
a
x
a
x
a
x
.
1
2
n
(
a
)y
k
x
a
(
k
x
)
a
(
k
x
)
1
1
2
2
n
n
x
)
.
Examples of Returns-to-Scale
The perfect-substitutes production
function is
im
y
m
n
{
a
x
,,
a
x
,
a
x
}
.
1
2
n
in
{a
x
),a
(k
x
),
a
(k
x
)}
1(k
1
2
2
n
n
Examples of Returns-to-Scale
The perfect-complements production
function is
i
y
m
n
{
a
x
,,
a
x
,
a
x
}
.
1
2
n
m
ik
{(a
n
(k
x
),,,a
(k
x
),
(x
a
)})}
k
x
1
1
2
2
n
n
Examples of Returns-to-Scale
The perfect-complements production
function is
i
y
m
n
{
a
x
,,
a
x
,
a
x
}
.
1
2
n
m
ik
{y
((.k
n
a
x
),,,a
(k
x
),
(x
a
)})}
k
x
1
1
2
2
n
n
Examples of Returns-to-Scale
The perfect-complements production
function is
a
a
1
2
n
y
x
.
a
a
a
1
2
(k
x
)(k
x
)(k
x
)n
Examples of Returns-to-Scale
a
a
1
2
n
y
x
.
a
a
a
1
2
(
k
x
)12
(k
x
)n1
(a
k
)2n
x
Examples of Returns-to-Scale
a
a
1
2
n
y
x
.
a
a
1
2
n
(
k
x
)1a
(2
)
k
x
(
k
x
)
a
n
1
2
12n
Examples of Returns-to-Scale
a
a
1
2
n
y
x
.
a
a
a
1
2
n
(
)k
k
(a
x
k
x
)
(
k
x
)
a
1
2
n
1
2
n
1
2
1a
n
y
.
Examples of Returns-to-Scale
a
a
1
2
n
y
x
.
a
n
(k
x
)a1(k
)221
(k
)n
k
y
.
Examples of Returns-to-Scale
a
a
1
2
n
y
x
.
a
n
(k
x
)a1(k
)221
(k
)n
k
y
.
Examples of Returns-to-Scale
a
a
1
2
n
y
x
.
a
n
(k
x
)a1(k
)221
(k
)n
k
y
.
Examples of Returns-to-Scale
Returns-to-Scale
Q:
/y
2
3
x
1.
Returns-to-Scale
Q:
a
2
/
3
1
2
y
x
1
4
a
1
23
Returns-to-Scale
a
2
/
3
1
2
y
x
1
4
a
1
2
3
2
1
/
3
2
M
P
xx
1
Returns-to-Scale
But
increases
diminishes as x1
a
2
/
3
1
2
y
x
1
4
a
1
2
3
2
1
/
3
2
M
P
x
x
1
2
23
1
Returns-to-Scale
But
diminishes as x1
increases and
diminishes as x1
increases.
Returns-to-Scale
So
Returns-to-Scale
A
Returns-to-Scale
When