Problem Set 1 Prof. Gene Chang Due on Dec.5 5th in the class,orta' 's office(经院220室) Late turn-in may result in a penalty in the grade 1. The consumption set is={x X E}. Suppose the utility function representing the preference

1.使用范围第四章生产者行为理论 2.要考核的知识点:影响企业决策的成本因素有哪些? 沉没成本与其他成本关系 沉没成本对企业决策的影响

1.使用范围:第四章生产者行为理论 2.要考核的知识点:边际报酬递减规律 3.思考题 (1)什么是边际报酬递减规律?其发生作用的条件如何 (2)人类历史为什么没有按照马尔萨斯的预言发展?

1. Integrability Demand function x(p, w)(c d ) is HDO, satisfied walras law and have a substitution matriX S(p, w) is s n.s.d. for any (p, w), if it's deduced by rational preference And if we observed an x(p, w)satisfied such conditions, can we find a preference to rationalization x(p w ) That the integrability problem

Chapter Three Consumer’s Behavior Theory: Further analysis(1) Chapter Four Production and Cost Function Chapter Five Perfect Competitive Market （1）完全竞争市场

1.使用范围:第五章“完全竞争市场” 2.要考核的知识点:形成完全竞争市场的条件 完全竞争市场的均衡决策

案例:有效金融市场的难题 1.使用范围:第五章“完全竞争市场” 2.要考核的知识点:形成完全竞争市场的条件 完全竞争市场的均衡状态

Chapter 3 includes: • 3.1 Revealed Preference Theory(显示性偏好理论) • 3.2 Choice Under Uncertainty(不确定条件下的 选择理论) 4.1 Production Function 4.2 Cost Function 5.1 The Optimal Output Decision in the Short Run 5.2 The Optimal Output Decision in the Long Run

Then =1-91=1(3+:2)(3+2n 可=-1-3)=1(4-+2)(1-2+a With 1 0 O: Thus, in equilibrium, we must have ai=.2. In fact, the two firms must sit in the middle By Proposition 2.1, Pi=p?=c Discussion

Structure Utility function (效用函数） – Definition – Monotonic transformation （单调转换） – Examples of utility functions and their indifference curves Marginal utility （边际效用） Marginal rate of substitution 边际替代率 – MRS after monotonic transformation