one sweet world
New member
Hi, could someone please help me out with the following questions? No need for tons of detail. Thanks!
Exercise 1:
a. Maximize the function
f (x) =
log(x)/x4
b. Check that, at your solution, the second derivative has the "right" sign.
c. Give a possible interpretation for the third derivative of a function (no
need for algebra here...).
Exercise 2:
a. Choose goods x, y to maximize the utility U (x, y) = x9y8 subject to the constraint x + 4y = 170, where x, y ≥ 0. Use your preferred method but show your work. Don’t just "guess" the solution.
b. Redo part a for U (x, y) = 27log(x) + 24log
. What do you note about
your result? Explain.
Exercise 1:
a. Maximize the function
f (x) =
log(x)/x4
b. Check that, at your solution, the second derivative has the "right" sign.
c. Give a possible interpretation for the third derivative of a function (no
need for algebra here...).
Exercise 2:
a. Choose goods x, y to maximize the utility U (x, y) = x9y8 subject to the constraint x + 4y = 170, where x, y ≥ 0. Use your preferred method but show your work. Don’t just "guess" the solution.
b. Redo part a for U (x, y) = 27log(x) + 24log
. What do you note aboutyour result? Explain.