Technology (L11)

Question 1

properties of technology

Answer 1

monotonic
free disposal
free lunch
convex, when tech production function is concave

Question 2

TRS

Answer 2

technical rate of substitution
how much of one that you need relative to the other to keep output the same
-MPL/MPK=-aK/bL

Question 3

returns to scale

Answer 3

increasing if t^a+b >1
constant if t^a+b=1
decreasing if t^a+b <1

Question 4

monotonic

Answer 4

more input = more output

Question 5

free disposal

Answer 5

(if too much is made you can throw it away)

Question 6

free lunch

Answer 6

no input no output