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Unformatted text preview: 1 = 5 and x ∗ 2 = 10 . See f gure 2. 1 4. Find the value of x 1 and x 2 that maximizes the following function: f ( x 1 , x 2 ) = x 1 x 2 − x 2 1 − x 2 2 . FOC df ( x 1 ,x 2 ) dx 1 = x 2 − 2 x 1 = 0 df ( x 1 ,x 2 ) dx 2 = x 1 − 2 x 2 = 0 Solving the system of equations we have that x ∗ 1 = 0 and x ∗ 2 = 0 . See f gure 3. 2 EC 111: Some Graphs for Homework 0 January 25, 2008 Figure 1: f ( x ) = xx 2 1 Figure 2: f ( x,y ) = 10 xx 2 + 20 yy 2 2 Figure 3: f ( x,y ) = xyx 2y 2 3...
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This note was uploaded on 02/13/2011 for the course ECON 111 taught by Professor Dalbo during the Spring '08 term at Brown.
 Spring '08
 DALBO
 Economics, Microeconomics

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