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Unformatted text preview: MS&amp;E 211 Fall 2007 Linear and Nonlinear Optimization Nov 9, 2007 Prof. Yinyu Ye Homework Assignment 5: Due 3:15pm Friday, Nov 16 There is a homework collecting box outside Professor Yes office (Terman 316) for you to submit your homework. No late homework accepted! Problem 1 (Fishers Exchange Market) Consider Fishers Exchange Market problem with two consumers and two goods. Consumer 1 has a budget of $50 while Consumer 2 has a budget of $80. Their utility coefficients on the two goods are (3, 2) and (2, 3) respectively. There are 4 units of good 1 and 3 units of good 2. What are the Fisher prices for the two goods such that all goods are sold and all money is spent when each consumer maximizes his/her utility? Solve the problem using the optimality conditions of the aggregate social problem and verify individual optimality using LP duality. Problem 2 (Formulate a Supply Chain Problem) A small computer company forecasts the demand over the next 12 months in the coming year to be...
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This note was uploaded on 06/16/2010 for the course MS&E 211 taught by Professor Yinyuye during the Fall '07 term at Stanford.
- Fall '07