ECON301 Study Guide - Final Guide: Pareto Efficiency, Social Welfare Function, Convex Preferences
Document Summary
Indifference curves: generally downward sloping, do not intersect, higher ic curves correspond to higher utility levels. Leontief simple and rigid structure, l-shaped with a kink at the corner point, also called fixed co-efficient function, special case of ces when q = 0. Primal output maximization primal problem is to get the highest output possible from a given cost level. Dual cost minimization dual problem is to get the lowest cost required to produce a given output level. Primal utility maximization primal problem of getting the highest level of utility for a given income. Dual expenditure minimization dual problem of keeping the lowest level of expenditure for the same level of utility. Gex two consumer exchanging two goods, pure exchange economy. Ge 221 two producers producing two goods and 1 aggregate consumer, production economy. Ge 222 two producers producing two goods and 2 consumers, mix of pure and production economies.
