Unformatted text preview: x 2 1/3 subject to the following constraint: x 1 +2*x 2 = 600. 4. Partial Derivatives and Total Differential Suppose Q(r,s) = (1/4)ln(r) + (3/4)ln(s) a) Calculate ∂Q/∂r, ∂Q/∂s. b) Evaluate these partial derivatives at r=1/3, s=3 c) Write the total differential for Q d) Calculate dr/ds for dQ=0, that is, what is the implied trade-off between r and s holding Q constant. Use the result from the previous part. e) Show that Q=0 when r=1, s=1. 5. Constrained Optimization (2 exogenous variables) Suppose that F(x,y) = xy. Find the maximum value for F if we know x+y= K....
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This note was uploaded on 10/18/2010 for the course ECON 11 taught by Professor Cunningham during the Spring '08 term at UCLA.
- Spring '08