• The “core” • Uniqueness of equilibrium • Stability of equilibrium • Welfare

• Pure exchange system • The existence of Walrasian equilibrium • The first theorem of welfare economics • The second theorem of welfare economics • Exchange with production

• WA and demand law • From preferences to utility • Utility maximization • Expenditure minimization

– Consumer’s surplus – Aggregation – Representation consumer

– Integrability – Aggregation across goods

Preference and rationality The rule of choice Budget Demand function WA and demanded law

▪ Content: • Definitions • Properties of cost function • WACM • Some forms of cost functions

– Some definition – Isoprofit curve – Demand function and it’s properties – supply function and it’s properties – Profit function and it’s properties

《高级微观经济学Advanced Microeconomics》PPT课件：lecture1 production theory I

• Inter-temporal preferences – Two periods – Several periods • Asset market – CAPM – APT – Complete market – Pure arbitrage