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Unformatted text preview: 4. Using Silberbergs primaldual optimization problem show that the solution profit function is convex in p and w where p is output price and w is a vector of input prices. 5. In the wheat storage problem one of the necessary conditions is 8 * (1) $ p s 1 where is the current value costate variable, and p s 1 is the price of wheat in storage at time 1 . If the two years are alike, say normal, then we expect the strong inequality to hold. Explain. In your explanation include both the mathematical and intuitive logic. 6. The primary reason economists study duality theory is to play around with the math. T, F, or U. Explain....
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 Spring '10
 Kutler
 Microeconomics

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