Production Plans with Multiple Outputs Lety≡(m,,…,ym) be a net output vector, YArn be a convex set,G:Y→R be twice differentiable Production possibility set:{y∈Y|G(y)≤0} Assumption 1.1. Gy (y)>0, Vi,yEY. Proposition 1. 12. Production frontier yEY G(y)=0 contains technologically efficient production plans Definition 1.1. Marginal rate of transformation
REMINDER: Quiz #2 will be held from 7: 30-9: 30 p. m. Thursday, November 13 in Walker Memorial. The quiz will cover materials in Chapters 4-7(through Section 7. 4)of O&w, Lectures and Recitations through October 29, Problem Sets #4-6, and that part of Problem Set 7 involving problems from Chapter 7 Reading Assignments