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– Finalterm: 80% of the questions ing from the assignments. lecture 1 for Chu Kechen Honors College The Basic Framework of Microeconomics Technology Preference Choice (production) Choice (purchase) Supply Demand Market Equilibrium lecture 1 for Chu Kechen Honors College Technology ? Contain: – “production (possibilities) set” (PS) and “production function”。 – Properties of the “PS”。 – Deliver on the class. ? examinations: – Midterm: by the assignments。 – Technical rate of substitution。 – Team work。 – Returns to scale. lecture 1 for Chu Kechen Honors College 1. Production set ? Production plan (production vector, or inputoutput vector): ? Production set Y: all technological feasible y. ? Restricted production set Y (z): – Some of yi in y are restricted on z . – Shortrun production set. 12( , , , )ny y y? ??????y{ : a r e t e c h n o l o g i c a l l y f e a s i b l e }n? ? ?Y y ylecture 1 for Chu Kechen Honors College 1. Production set ? Input requirement set: – All yi in y are negative, let them be –x (then x is positive), and the rest yj to be q .