范里安中级微观经济学知识点总结.docVIP

范里安中级微观经济学知识点总结 Summary Marginal analysis:1:Marginal magnitudes=tangentα=slope of TM 2:Average magnitudes=tangentβ=slope of ray 3: Total magnitude 4: AMMMAM AMMMAM 5: MM cuts AM at AM’S max or min Budget constraint and indifference curves: Vertical intersection: Budget lines: slope= Horizontal intersection: Imposing a tax/giving a subsidy; changing income/price. Indifference curves: cannot cross each other. Following are some indifference cur ves. Utility function: Optimal choice: (Interior/boundary/kinky solutions) Graphically, it is the point where budget line and indifferences curves tangent Luxury goods: 0 Normal goods:0 Necessary goods: 0 Inferior goods:0 Perfect complement: Budget lines Budget lines Perfect substitutes: Cobb-Douglas: Quansilinear: Slutsky equation The total effect = the substitution effect + the income effect A giffen good must be an inferior good Endowment Budget line goes through endowment has a slope= Market demand Horizontal summing up principle Price elasticity of demand: Linear demand curve: Equilibrium Imposing tax Passing along the tax burden: The steeper the curve is, the more tax that side suffers tax pay by consumer Dead-weight loss Technology Marginal product: MPI = Technical note of substitution: TRS (slope of isoquants) Law of diminishing marginal product: Returns to scales Profit maximization and cost minimization Profit: X be constant isoprofit lines: If the firm is at its profit maximization condition, it must also be its cost minimization condition Isocost lines: c= Tangency condition yields the optimal cost minimization point: - Perfect complement: Cobb-Douglas Firm supply and industry supply Prod