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Unformatted text preview: 2 vu ; this point is a Maximum b) First Order Conditions: g u = & 5 + 8 u + 8 v = 0 g v = & 9 + 10 v + 8 u = 0 There±s a unique stationary point ( u & ; v & ) = ( & 11 = 8 ; 2) Second order Conditions g u u = 8 g vv = 10 g uv = 8 g u u ± g vv > g 2 vu ; this point is a Minimum c) First Order Conditions g u = u 2 + 3 v + 2 = 0 g v = 3 u & 3 v = 0 There are two stationary points (2,2) and (1,1). Point (2,2) is a local maximum and the other point doesn±t satisfy the inequality for the second order condition. d) First Order Conditions: g u = 24 u ± 2 = 3 v 1 = 3 & 6 = 0 g v = 24 u 1 = 3 v ± 2 = 3 & 3 = 0 The stationary point is ( u & ; v & ) = (128 ; 256) . This point is a maximum. 2...
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This note was uploaded on 05/18/2008 for the course ECON 300 taught by Professor Cramton during the Spring '08 term at Maryland.
 Spring '08
 cramton

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